At Mesa Financial our specialists are experienced at finding the right financial solutions, even in some of the most complex of cases.
Borrowing for business purposes
In this case our client needed to borrow some money to help accelerate growth within their business. They had already doubled the business turnover and needed a large amount of capital to keep up with the huge amount of growth.
The client’s goal was to build the infrastructure of the business to support the next level of growth. As the client was borrowing for business purposes, this can be a huge red flag for a number of mainstream lenders. Most lenders will not lend for this purpose, but given the majority of our clients are LTD company directors we knew exactly what bank to approach for this borrowing.
Challenges of being a LTD company director
One of the biggest challenges LTD company directors face when looking to borrow money is the fact that they normally keep their income and dividends drawings to a minimum of what is required for essential living costs. Most lenders will then assess the mortgage based on dividends plus salary. This can be a huge detriment to LTD company directors and can cut any borrowing potential massively. At Mesa Financial we have built relationships with lenders that understand this profile of client, which means they can assess the whole picture and lend against company profits even if the dividend drawings and income are smaller than required.
The result for the client:
- £1.38m loan – enough to cover the purchase, stamp duty, legal costs and other associated fees
- Interest rate – 0.99% 5 yr fixed
- Total LTV – 60%
- Interest Only
- Funds used for business purposes
The Mesa Financial Service
If you are a LTD company director and have had issues in the past obtaining a mortgage, it is always worth contacting the Mesa Financial team to see how we can help you. We always aim to add value to our clients by finding a deal, often bespoke, with carefully negotiated terms to suit the client’s interests.
All of this with the friendly and professional service that we have become renowned for. We look forward to working with you.