“I did not appreciate that the sort of facility we now enjoy was possible for a relatively small development company such as ours. The credit line now in place will save us many thousands of pounds over the next few years and leave us free to concentrate on our work, rather than keep having to spend time making applications for new projects”.

 - Simon Etherby, Company Director

Client Industry
Property Development Company

Location
Sussex

Background
The Client had been trading for a number of years undertaking property developments mostly for resale and with some retention into a small property portfolio generating rental income. As developments had become larger and more frequent the finance costs were under scrutiny as an increasing significant overhead for the business.

Problem
The Client had agreement from his bankers to advance monies towards their next development project and although the amount offered at 50% of the land value and 66% of development costs was acceptable, the arrangement fee of 1.5% and the interest rate terms at 3.5% over base rate were considered high.

Watson's Solution
Watsons Broking Service reviewed the Client’s specific proposal and portfolio and, using its whole of market contacts, quickly arranged an ongoing credit line through an alternative UK lender for the Company.

Result
The solution means that repeated arrangement fees for subsequent developments have been avoided and the interest rate terms negotiated of 2% over base rate represent a significant ongoing saving that will recoup the small Watsons brockerage fee within the timescale of the first development.