Case study

Beating the clock with a Development Exit Loan


This property investor has been focusing mainly on flipping projects and has been making the most of the benefits of Bridging Loans to help boost their profit between the purchase of a property and a sale. With a latest project unexpectedly about to run out of time, the investor contacted industry broker Som Emadi at Unicorn Commercial Finance to help source a funding partner that could offer additional breathing space and avoid having to pay hefty late penalty fees.

When considering suitable lenders to introduce to his customer, Som chose asset-based lending specialist Ultimate Finance. He explains, “I first came across Ultimate Finance during the pandemic when they were accredited as a CBILS lender, but we never had the chance to really work together until this case. I approached them with my customer’s requirements, and they very quickly confirmed that this was something they were able to help with. The developer’s situation was an unusual one, as despite their best efforts and experience, they had seen their latest project delayed due to a completely unrelated service provider’s own work in the area taking much longer than advertised and therefore preventing the development works from beginning for nine months”.

Som got in touch with Regional Director Alice Williams who worked on tailoring a Bridging Finance facility for the developer. Alice says, “When dealing with Bridging Loans, timing is usually of the essence, and it definitely was the case here. We had less than 10 working days before the developer’s existing funding line was due to expire, and so to help them avoid having to pay penalty fees we had to act with speed and efficiency to provide them with a new Bridging Loan that would be fit for purpose”.

The team at Ultimate Finance used their expertise to ensure that the entire process could go as seamlessly as possible, from underwriting to the funds being transferred. Alice continues, “We were able to get the valuation rewritten, a proposal for a £645k Bridging Loan against open market value approved by our Underwriting team and the solicitors instructed within just a few days so that we could meet the tight timescales we were working against”.

“We believe in being a fully committed lender, and so we task ourselves with providing a decision in principle within as little as 24 hours and a full credit backed offer in 72 hours, and once we have made a decision we stick by it and we work on making it happen, even when the clock itself is against us. The successful completion of this loan boils down to the efficient processes and excellent communication channels we have at Ultimate Finance. Through our One-Team approach, we offer direct access to the entire deal team responsible for getting things moving forward behind the scenes means that there is no unnecessary back and forth between a broker and their dedicated Regional Director. Most importantly,”.

Som concludes, “This was a very impressive completion, and I am delighted to have worked with Ultimate Finance on it. They showed real expertise in their ability to make quick and sensible decisions which meant that we were able to provide exactly what the property investor needed. Had it not been for Ultimate Finance’s quick thinking and robust processes it could have been much more stressful for everyone involved”.

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