Alternative Bridging funds Cotswolds builder with £1.3m

Alternative Bridging Corporation has provided a £1.3m overdraft facility for a housebuilder in the Cotswolds.

The developer required access to £1m to support its ongoing operations after experiencing longer-than-expected delays with sales.

Although properties had been reserved, the time taken for transactions to complete was placing pressure on the business’s cash flow.

Alternative Bridging Corporation structured the funding through its Alternative Overdraft product at 55% LTV. Rather than requiring the borrower to draw down the full amount immediately, the facility allowed funds to be accessed as and when needed.

The transaction was led by Jonathan Rubins, director and chief commercial officer at Alternative Bridging Corporation (pictured above), supported by Mihaela Janko, manager of the case management team, and Hannah Scheuber, senior underwriter.

Jonathan said the lag between reservation and sale completion can provide “unnecessary pressure” to a developer’s business that is otherwise in a healthy place.

“An overdraft facility gives borrowers the ability to access capital when they need it, without having to take on the full borrowing from day one,” he added.

“As lenders, we need to understand how a business operates and where the pressure points are, rather than assuming that every short-term funding requirement calls for the same solution.”