Bullet Payment

Finding the magic bullet

A Manchester based property developer, contacted PFC Finance as the company was looking for a £200,000 loan to allow the business to reinvest in new opportunities while it completed on the sale of one of its property assets.

The property company had purchased a commercial building on the outskirts of Manchester, developed and refurbished it and was looking to take out its initial capital investment in the form of a bridging loan that would be repaid when the property sold. In doing so it would be able to look at investing in other opportunities, without being constrained by the timetable associated with the property’s sale.

Bullet Payment

The property company had an existing relationship with PFC Finance and contacted the firm looking for the fastest and most flexible way it was able to release the equity from its property asset. A Bullet Payment was proposed and PFC Finance was then able to secure lending from one of its brokerage partners and deliver the £200,000 directly into the company’s bank account. The end to end process was achieved within a fortnight from the initial telephone conversation.

Anton Rodgers, director at AGP Homes, comments: “As with many businesses, having a strong cash flow and money available can make a real difference. The Bullet Payment arranged by PFC Finance enabled us to reclaim our initial investment and then use the money in new rewarding projects, rather than having it tied up in the company’s assets.”

Alun Rogers, director at PFC Finance, adds: “We were delighted to be able to provide AGP Homes with this route to finance and to help them access the funds needed to once again move forward as a business. We have worked with the team at AGP Homes on a number of projects and hope to help them again in the future.”

When securing the loan, AGP Homes had the option to pay the interest on the loan until full repayment or to pay the loan and any interest off in one lump some when the property is sold.