Raj Kumar, the majority shareholder at Borough Junction — which owns nine office buildings as well as the freehold of a block of 12 offices in Barking — realised that the company needed to increase the income of the London office block to service the debt of a bridging loan used to purchase it.
Due to the increase in income taking longer than expected, the urban development firm injected additional capital into the company while longer-term finance was sourced.
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Redwood Bank managed to provide the loan — with drawdown taking place within 18 days — which minimised the weekly interest penalties that were being incurred by Borough Junction.
“Getting the customers to buy in to the personalities behind the bank sold this deal to Raj, as it gave him the comfort he was looking for, in that we were here to help rather than putting obstacles in the way,” said John Hall, BDM at Redwood Bank.
Manish Babla, senior consultant at Sterling Professional Finance, which introduced Redwood Bank to Raj, added: “Raj Kumar has been a client of Sterling Professional Finance for over five years.
“While he needed a facility, we had to be sure it was executed quickly, along with the right covenants being applied.”