We were recently in receipt of an application from one of our introducers which was on behalf of a business which provides fully serviced apartments in the south east of England.
We were being asked to support a loan request of £150,000 over 36 months to support a range of marketing and re-branding activities as well as providing some additional general working capital.
They market their properties for short term use by tourists, couples, groups and families and friends and all are equipped with modern amenities and housekeeping services.
The business, whilst relatively young (4 years trading) demonstrated profitability and debt service coverage of around 1.1. Revenues had increased to around £500k per annum and the supporting bank statements showed a well conducted account.
The director had considerable equity in his personal residence as well as owning a number of buy to let investments and we were able to use these, in addition to his personal guarantee, in order to support this request.