The borrower requested a loan from Novellus for business working capital. More specifically to assist the company with refurbishment costs and planning applications on assets within their property portfolio.
Two individuals, that jointly own several companies that specialise in lettings and student accommodation. They required cash quickly to secure a purchase and for some refurbishment works.
Research: The borrowers were existing and performing clients, who has a very good experience in property investment/management. The clients have a large property portfolio which was researched in depth by the Novellus team and verified by an accountant. The main underwriting work was to understand the repayment strategy which would be via various refinances and sales.
Terms and Timelines: Novellus provided an unsecured loan under their ‘unsecured rate’ of 1.5% per calendar month, for 12 months. The loan was repaid in part repayments, via sales and bank refinances once improvements had been made to their existing assets with future rental income secured.