How Fiduciam’s £15m loan saved the day for care homes

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Director Johan Groothaert says Fiduciam has ambitions to continue to expand after completing a £15million loan, its largest to date.

Fiduciam, the bridging and marketplace lender, did the deal to enable a borrower to save their business worth in the region of £25million.

Fiduciam’s £14.91million loan enabled the borrower to refinance three UK care homes that they owned. The borrower had run into trouble with their High Street lender who wanted to foreclose on their loan, despite the business still being in profit, due to a Care Quality Commission (CQC) issue with one of the homes.

The borrower stood to lose around £8million in equity had the lender progressed a sale through administrators.

And Groothaert said: "This loan, our largest to date, has helped a borrower out of immense financial difficulty. Fiduciam assesses each case on its own merits and delivers bespoke solutions to both intermediaries and borrowers.

“Our strength lies in our institutional funding, which means Fiduciam is able to lend up to 25 million in multiple currencies such as euros, sterling and US dollars on property across England, Wales and Ireland, as well as a number of European countries with loans up to three years.

“We continue to develop in all areas of our business with ambitions to continue to expand through innovative lending and problem solving.”

The Fiduciam team, working closely with all parties through numerous issues and unexpected delays, was able to find a solution and ensure that completion of the 24-month bridging loan took place in plenty of time to pay off the first lender.

This allowed the borrower to retain the business they had spent 20 years building and, in doing so, prevented the loss of numerous jobs and much-needed beds for patients. It also gives them enough time to restructure the business and put another long-term loan in place.

Fiduciam says it has been on a rapid expansion drive as its reputation grows as a lender who uses short term loans to provide effective business solutions; this latest loan accelerates that growth.

Fiduciam has now supported SMEs with more than £148million of loans. It is currently lending at a rate of £200million per year with growth in 2018 expected to be up 200 per cent from 2017.

Matt Vincent, specialist lending director at master broker Positive Lending, said it was the lender's "can-do" attitude that was so impressive.

He said: “At Positive we have a dedicated team specialising in bridging finance who frequently arrange large loans for short term lending. This particular client needed almost £15million funding to pay back their original lender but their security situation was complex, which is why we approached Harry at Fiduciam.

"The lender’s can-do attitude and ability to quickly understand the borrower’s situation meant we were able to arrange the monies required and, more importantly, help save the client’s business.”

Harry Hodell, senior originator at Fiduciam, who managed the case, added: "The manner in which the Fiduciam team managed themselves to complete this case proves that Fiduciam is a lender looking for solutions, to overcome problems.

“Completing the amount of work required on this case in a short timeframe shows our process works; we are able to handle complicated cases efficiently and effectively. Matt at Positive Lending was the consummate professional throughout the process and assisted us greatly with the completion of this loan.”

Carl Eldridge is a journalist with more than 25 years’ experience working on local and then national newspapers, including a spell on the City Desk at the Daily Express, before switching from print media to the internet.

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