Roma saves local post office with bridge

Roma saves local post office with bridge

Specialist lender Roma Finance offered first class service when helping a client save a local business which was looking to expand its premises .

Specialist lender Roma Finance offered first class service when helping a client save a local business which was looking to expand its premises...

Case File:
•    Client needed £70k over six months
•    The local post office had recently closed
•    Farm shop and four acre plot valued at £140k
•    Bridging loan used for expansion and buying opening stock for the business
•    Client will exit the bridge by moving home to raise the capital
•    Client now looking to raise funds via Enterprise Investment Scheme (EIS) to relocate post office to a central village location

The post office, which was situated near Glastonbury, had closed down after the owner had retired. The client wanted to reopen it as part of a farm shop business.

Bridging lender Roma Finance met the client after being alerted to the situation by a new introducer. Bridging finance was discussed in order to reopen the post office and the business.

The farm shop/post office

As part of the proposal, the post office was to be relocated to the client’s popular farm shop nearby.

A £70,000 bridging loan was needed to fund alterations to the shop for the new venture, as well as financing the opening stock for the business.

The farm shop, which is set on four acres of land and valued at £140,000 by a local chartered surveyor, was used as security for the loan.

For the exit, the client would take the proceeds from the sale of his main residence, which was marketed at £800,000, and move to another property in the village.

The client also raised £80,000 already via an EIS, and is now looking to raise another £150,000 to return the post office back into the heart of the community.

Daniel Hill, Lending Manager at Roma Finance, said although this was a complex case, it proved extremely worthwhile as the post office provided a vital service to the local community.

“The client had a proven local business with a farm shop that had been trading successfully for eighteen months, and when the post office closed down, took it upon himself to arrange to transfer it over to his nearby shop.

“There was plenty of equity in the farm shop and land for the loan, and with the sale of his house he had a planned exit route too.”

“This is one of those cases that only happen every so often and to help a local community is an added bonus for all involved in the transaction,” Daniel concluded.

Earlier this month, Roma Finance also announced that it had snapped up ex-bank manager Lorraine Hart to become a lending manager. Lorraine will act as an intermediary for introducers, assisting them with cases from initial enquiry through to completion.

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