Positive Commercial Finance secures funding for client to buy premises in £2m transaction

18 January 2017

Positive Commercial Finance, the specialist commercial, bridging and development broker, arranged a funding facility through Lloyds Bank for a business client looking to purchase the industrial premises they rented in a transaction worth over £2m.

Manchester-based Concept Chemicals are an award-winning world-class manufacturer of innovative technical chemicals used in cleaning, re-conditioning and detailing solutions across the automotive, logistics, marine and industrial markets, with 80% of production being exported around the globe.

The opportunity to purchase the industrial estate on which their factory is sited was a vital part of their strategy to expand their manufacturing operations to cope with surging demand, and to secure future employment and investment in Manchester.

The client also saw the need to purchase the units to prevent another business acquiring the buildings, which would have meant a relocation, which wouldn’t be practical for their locally based staff or business continuity.

Having heard of their financial expertise, the client approached Positive to see if they could help.

A meeting was quickly arranged and a fact find carried out, and, based on their requirements, several suitable lenders were approached that had a current desire to lend commercial finance. Lloyds showed a genuine interest in the client’s business and sent their fully accredited specialist manufacturing manager out to meet them and better understand the business and their funding requirements.

Lloyds Bank were keen to lend to the UK manufacturing sector due to their specialism in this area, and the client’s business profile was a good fit with Lloyd’s target profile for new business, due to the high level of exports.

Positive Commercial Finance were very proactive and liaised closely with Lloyds to formulate two funding options to discuss with the client - a standalone commercial mortgage plus VAT loan to help in the purchase of the property, or a full package including replacing the existing overdraft facility with their current bank.

The funding agreed was structured as a £1,395,000 commercial mortgage over 20 years plus a short-term VAT loan and was completed in just six weeks - a very fast turnaround for a funding of this type.

Samantha Williamson of Positive Commercial Finance, commented: “It was a pleasure to help a client with such a well-established business and keen to purchase their premises to safeguard their future. It was imperative to progress the case swiftly and provide options for the client based on their mortgage needs and business plan. I’m very pleased with the outcome and they can now look forward to further success in a building they now own.”

Paul Teasdale, non-executive director at Concept Chemicals and Coatings Limited who led the deal for the company, said: “I was delighted with the responsiveness of Positive Commercial Finance and their professional expertise. Their extensive network of lender contacts meant we got the finance we needed, quickly, on better terms than other offers and generated a substantive saving from monthly repayments below what we were previously paying in rent. A winning combination and a very positive experience.”