Commercial expert saves customer £38k per annum with £2.2 million refinance

Commercial finance broker Commercial Expert has achieved a significant annual saving for a property investor forced to refinance with an existing bank.

The County Durham-based broker was able to help with a £2.2 million refinancing package which resulted in a saving of £38,000 per annum for the client.

The borrower needed the funding to refinance existing commercial loans, as the previous lender had requested the reduction in debt due to a significant change in internal policies.

James Gwynne, appointed representative at Commercial Expert Ltd was able to examine the market, arrange and manage the valuation, and liaise with solicitors and the bank to settle the existing debt, securing three new loans against the client’s property portfolio before the bank’s settlement deadline.

The client now holds three interest-only loans with payments of approximately £102,000 per annum:

Loan 1 - Shawbrook - £1,210,387 interest only for 20 years;

Loan 2 - Atom - £860,000 interest only over 20 years;

Loan 3 - Paragon - £125,000 interest only over 20 years.

James said: “Being able to support a client like this during their time of need is exactly why I am in the business I’m in. The client now has peace of mind that their loans and payments are set for five years and they can plan for the future accordingly.

“Within the next five years’ time, we would hope that we would be able to release more monies for the client, secured against these properties as the respective values should increase significantly as the impact of the Covid-19 pandemic is left behind.”

James said Commercial Expert is not just about securing loans. They want to work closely with clients to understand their business model, priorities, aims and ambitions and help build a team of experts around them:

“The client has already indicated that they will be coming back to us to borrow for their next purchase, and I have already provided them with new legal representation. I am also in the process of finding a new accountant due to previous failing in both areas,” he said.

“This is exactly how we want to work with our clients. We want to be at the heart of their business helping them navigate these choppy waters and keep them on track for future success.

“We want to provide this level of support to all our clients. When businesses and their advisors work together there is no limit to what they can achieve.”

Mike Coates, managing director at Commercial Expert added: “It is really satisfying that a valued member of our team was able to help a client in this way and achieve very significant monthly savings.

“Most businesses have been impacted by Covid-19 and the downturn in the economy and anyone in business can benefit from a release of that financial pressure.

“This is a great example of what we can do to help commercial clients at this time. By easing the pressure now, businesses have some breathing space and can prepare for the recovery and better times ahead.”

“It isn’t just about providing the client with an offer of finance, it’s about the additional service and tenacity to ensure the completion process is as smooth as possible”.

Commercial Expert is an independent commercial finance broker offering a comprehensive range of business finance to a broad spectrum of clients, each with differing financial requirements.

The firm is proud to be authorised and regulated by the Financial Conduct Authority (FCA) and a full member of the National Association of Commercial Finance Brokers (NACFB) since 2008. This ensures a robust process is adhered to throughout the application process and regulated commercial financial advice is offered.