Tarlochan Garcha

Berkeley Asset Finance lends £3m to FTSE 250 company



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Berkeley Asset Finance has provided a £3m bridging loan to a FTSE 250 company for business cashflow purposes, in addition to recently investing funds into another bridging lender.

The deal was referred by Joseph Samuel, a partner at S&B Consultancy, with a requirement to complete within two weeks.

Following an initial assessment, Berkeley Asset Finance issued terms to the overseas-based parent company within three hours.

The following day, the terms were approved by the borrower and, within 96 hours, the lender had received a full valuation report.
 
To make the deal possible, the lender had various conversations and zoom meetings with the board members from the UK and the overseas parent company. 
 
As a result, the 50% TV £3m loan was provided on a six-month term, with a first legal charge over a prime London asset, valued at £5.9m.

“My team at Berkeley Asset Finance were fantastic and, despite us all working from home, were able to prove that the lockdown is no barrier to taking on new, time-sensitive deals,” said Tarlochan Garcha, CEO at Berkeley Asset Finance (pictured above).

He believed there were “thousands of viable UK businesses that required funding”, for various reasons, which it could potentially support going forward.

Since mid-March, the lender has been “inundated” with enquiries for all types of unregulated bridging loans and business funding.

Due to the rise in demand, it has recently started investing funds into another bridging lender, which has agreed to its criteria for more conventional bridging loans.

“We are always looking for further partnerships to help us diversify our funds to end borrowers,” Tarlochan added.

Berkeley Asset Finance will focus more on complex deals and UK business that need funding due to the Covid-19 crisis.
 
“By doing this, we are able to support more clients that are in urgent need of funding and help support the sector.

“The additional advantage we have is that, as a business, we have been stress testing our loan book (due to Brexit initially) for the last 18 months — therefore are prepared for an economic downturn and have factored in various scenarios.
   
“Finally, we don’t rely solely on external funding lines, therefore, are not constrained by onerous conditions.”

Tarlochan joined the lender as CEO in December 2019 from The Bridging Group, with plans to grow its core bridging business significantly in 2020.

Berkeley Asset Finance is part of NM Group, which includes Incisive Wealth Management, a company which currently has £750m of funds under management.

In December, the lender revealed that it aimed to provide at least £60m of loans in 2020, in addition to launching other bridging products.

“…We are well positioned to not only exceed our own business plan for 2020, but to also support many different types of UK borrowers and businesses,” he confirmed.

“New product launches have been put back to Q3 2020, due to current demand of existing products, and for us to assess the economic position moving [forward].”

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