The “unrivalled speed, service and flexibility” of a Hertfordshire challenger bank has helped secure the future of a London office block, thanks to a £3 million loan.

Borough Junction Ltd owns nine office buildings and the freehold of a block of 12 offices in Barking. The original purchase had been made thanks to a bridging loan, even though initially the income being generated was insufficient to service the debt. However, Raj Kumar, the majority shareholder in Borough Junction Ltd, knew the potential of the site and used his commercial property experience and local market knowledge, to increase income before this became an issue.

Increasing income however took longer than expected, so additional capital was injected into the company to buy time, whilst longer term finance was sourced.

Fortunately, for entrepreneur Raj Kumar, this particular challenge came to the attention of Redwood Bank’s team of experts.

Having been introduced to Raj by Manish Babla and Sanjay Rughani of Sterling Professional Finance Ltd, Redwood set about finding a way to clear the expensive short-term borrowing, which could have nullified the success of Raj’s operational business.

Redwood embraced the complexity of the situation to ensure a smooth, workable solution was in place that suited all parties. The Bank set about finding a way to clear the expensive short-term borrowing and agreed a loan of almost £3 million, with drawdown taking place within 18 days, minimising the substantial weekly interest penalties being incurred by Borough Junction Ltd.

John Hall, Business Development Manager of Redwood Bank said: “Getting the customers to buy in to the personalities behind the Bank sold this deal to Raj, as it gave him the comfort he was looking for, in that we were here to help rather than putting obstacles in the way.

“We were able to show that this was a bank-wide attitude from Redwood, and was evidenced by the dialogue we had with both the broker and the customer when getting this loan on board.”

Mr Hall added: “At the time, the proposition was outside the Bank’s current standard policy on single asset value and term of the loan, but Redwood’s ability to be innovative in our thinking, and our unrivalled speed, service and flexibility, allowed us to develop a workable solution for all parties.”

Manish Babla commented, “Raj Kumar has been a client of Sterling Professional Finance for over five years. Whilst he needed a facility, we had to be sure it was executed quickly, along with the right covenants being applied. We found that John was able to understand the complexity of the situation, while getting Redwood’s credit team to buy into the proposition.”

Picture L-R: Gary Wilkinson - CEO & CO-Founder, Sanjay Rughani - Regional Director at Sterling Professional Finance Ltd, John Hall - Business Development Manager (South & East), Manish Babla - Senior Consultant at Sterling Professional Finance Ltd, Lynn Kemp - Business Development Officer (South & East) and Graham Reynolds - Chief Development Officer. 


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