Commercial property acquisitions can present significant opportunities for growing businesses, but securing funding within a fixed timeframe can be challenging. Lenders differ in their approach to pricing, service levels and completion timescales, making it difficult to identify the right funding partner when time is limited.
This was the situation facing an established vehicle services business when an opportunity arose to acquire its operational premises and associated assets. The terms of the acquisition were attractive, but the transaction needed to be completed within three months.
The Challenge
The business had identified a strategic opportunity to purchase the premises from which it operated, securing an important asset and providing a stronger foundation for future growth.
However, there was a significant challenge. The acquisition had to be completed within a strict three-month deadline. Failure to meet this timescale would have resulted in the opportunity being lost.
Initially, the funding requirement was expected to be £900,000. As the transaction progressed, additional funding needs were identified, increasing the overall requirement to £1.2m.
The business needed a lender that could offer certainty, competitive pricing and the ability to complete within the required timeframe.
They needed:
£1.2m to support the acquisition
A lender capable of meeting a strict completion deadline
A competitive interest rate
A long-term repayment structure to support cashflow
A relationship-led approach with ongoing support
Without access to a broad view of the market, there was a risk the transaction could be delayed or fail to complete within the required timescales.
The Solution
Working with Dave Jones, the business reviewed a range of commercial mortgage options from both existing and prospective lenders.
Several lenders were considered, but concerns remained around pricing, service levels and the ability to complete within the required timeframe.
After comparing the available options, Dave identified a commercial mortgage solution with an international bank that closely aligned with the business's objectives.
The recommended facility offered:
£1.2m of funding to support the acquisition
A 20-year repayment term
A competitive interest rate
No early repayment charges
A dedicated relationship management team
Guaranteed completion within the required timescale
The lender also agreed to reduce arrangement costs, further strengthening the overall funding package.
The Outcome
The business secured a £1.2m commercial mortgage, enabling it to complete the acquisition of its operational premises and associated assets within the required three-month deadline.
The funding provided:
Ownership of a strategically important business asset
Greater certainty over long-term occupancy costs
Flexibility for future growth and investment
By securing a competitive long-term funding solution, the business completed a time-sensitive acquisition and strengthened its foundations for future expansion.
Facing similar challenges with commercial property finance or business acquisitions?
Talk to Dave Jones and the UMi Get Funding team today to explore your options.