Using a Third Charge Bridging Loan to Access Short Term Finance

Our client, a successful UK-based entrepreneur with a thriving business generating a turnover of approximately £1 million per year, sought our expertise to address an urgent financial need. The client owned a prestigious super-prime property in London valued at nearly £2 million, but was facing fluctuations in cash flow that required immediate attention.

With plans to expand their business operations, they needed to raise finance quickly. The solution involved seeking a third charge on their property, a complex and rare option that required specialist knowledge to access.

The Challenge

Despite a substantial asset base and a solid track record in business, our client faced several challenges in raising the necessary finance:

• Cash Flow Variations: The business was experiencing variations in cash flow, making it difficult for the client to secure traditional forms of financing through conventional lenders

 • Third Charge Loan Complexity: Third charge loans are infrequent and less widely available. Such loans are often seen as higher risk, meaning they require careful structuring and the right lender to ensure they are viable

• Time Sensitivity: The client needed the funds quickly to support ongoing business activities and ensure the success of upcoming ventures. This urgency meant there was little time for delays in securing the finance.

How We Made It Happen

Understanding the complexity of the situation, we worked quickly to develop a strategy tailored to our client’s needs:

• Specialist Knowledge and Access: we leveraged our expertise in structuring third charge loans, a niche but feasible option given the high equity in the property and the strength of the client’s business and wider wealth.

• Lender Selection: Through our extensive network, we quickly pinpointed lenders experienced in high-value bridging loans, particularly those willing to work with third charges. We ensured these lenders understood the client’s wider wealth and business solidity, presenting a compelling case for the loan’s viability

• Streamlined Process: Time was of the essence, so we worked closely with all parties involved to accelerate the application and approval process. Our team ensured that all necessary documentation and valuations were processed swiftly

The Outcome

Our strategic approach led to the successful securing of a third charge bridging loan offer for our client. This gave them access to capital quickly, helping them ensure support for their business activities and strengthening their financial position for future ventures.

This case highlights our ability to navigate complex and specialised financial solutions, particularly when traditional options are unavailable. By drawing on our extensive experience and industry connections, we were able to unlock an effective solution that met our client’s immediate needs while providing the flexibility required to manage cash flow variations.