Example Term Loan: 160,000 for farm diversification, Scotland, 39% LTV, 1st Charge

Background

Why did the borrower need the loan?

To repay a short term loan and upgrade the farm buildings, water and drainage. Develop an old farmhouse and barn for holiday lets, while extending their rare-breed herd.

Why couldnt they raise funds from traditional lenders?

The borrower was highly credible and working in agriculture overseas on a contractual basis.However, as they were over 70, their bank had no interest in providing finance.

Why were we selected?

Our team understood the collateral, and after a thorough assessment the borrower passed our affordability tests.

Key Loan Terms

Amount:
160,000

What did we see that others didnt?

We were able to see a remote location that is close to a famous golf course and likely to be popular with tourists. The borrower was energetic and actively engaged in every detail of the development, giving us confidence in their plans to diversify into holiday lets and expand their rare breed sheep herd.

Term:
84 months

LTV:
39%

Security:
1st Charge

What is the expected exit?
Repayment loan.

Use of Proceeds:
Diversification

Exit:
Repayment loan

Rate:
7.0%