Working Capital Trade Finance for Property Development in Somerset

A Somerset based property development company was initially introduced to us to organise development funding with a property developer funder. The client was involved in a development of 1 x detached 4-bed house, 4 x semi-detached 3-bed houses and 2 x semi-detached 4-bed houses with a GDV Circa £1.9m and £900,000 was required.

After the initial contact, we were able to establish that there was an issue for the client where they needed to pay their contractors before they received the funds from their finance provider.  This unfortunately would not happen until there was sign off from an architect on certain stages of the development, therefore created a cash flow issue for the client.  The added complexities of the case were that the actual companies borrowing were SPV’s with no trading history.

How we Helped with Working Capital Trade

On this occasion, Genie Lending was able to help by organising a facility of £500,000 to the client split over 2 SPV’s, one for £300,000 and the other for £200,000.  This was guaranteed by the parent company which turns over £2m with a capital base of £6m.

The facility we provided is a Supplier/Trade payment facility with a maximum of 120 days for repayment, provided on a fully revolving basis, fixed pricing driven by amount and term.  The lender would settle the supplier invoices on the client’s behalf and the client would be repay within the pre-agreed time frame for a pre agreed fee.