Enness Provides a Tailored Financial Solution to a UK Construction Enterprise

4th December 2023

Chris Whitney

Construction Site
Chris Whitney

Chris Whitney

Enness successfully provided financing terms to a prominent British enterprise, a significant player in the UK's construction sector. The company operates from a substantial site in the north of England, secured through a long-term lease.

After a thorough specialist evaluation of the site, it was estimated that the value of the enterprise was in excess of £5 million. Additionally, the firm held a significant reserve of construction materials available for future use. This amount is projected to sustain the enterprise's operations for a significant amount of time, indicating its continued profitability and viability.

Despite its strategic importance, the company faced challenges leading to escalated production costs, compounded by the necessity to address additional one-time fees.

In response, Enness provided a financial solution by negotiating a £3 million loan structured over 15 years. The interest rate, set at 2 points above the base rate, was complemented by a fixed-rate option, providing the client with a flexible and tailored financial arrangement.

Additionally the ownership structure added further complexity to the case, requiring Enness’ specialist knowledge to best package a case such as this. Enness navigated this intricate landscape precisely, ensuring a comprehensive understanding of the unique ownership dynamics to tailor a bespoke financial solution aligned with the client's needs.

Notably, the loan agreement incorporated a forward-thinking approach, featuring no early repayment charges. This gave the company the flexibility to make lump-sum repayments at their discretion.

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