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Case Studies

How we have raised finance for businesses like yours

Pension fund used to buy school premises

Concorde International Ltd is a well established English Language School in Canterbury, offering courses to overseas students from Europe, the Middle and Far East, China and Japan. In January 2008 owner Colin Stone discovered that the property they leased within the city walls was likely to go up for sale. A listed building, the property was owned by a family trust and needed considerable renovation. Colin met with David Milham at ASC Finance for Business’ in Faversham to discuss his finance options to buy the property. Sales negotiations with the vendor’s agent were protracted because they believed a higher price could be achieved with change of use and in the autumn with no deal confirmed, Colin checked that funding would still be available as the credit crunch was starting to bite.

At the end of January 2009 his offer was finally accepted and he asked David to raise the funds. Colin had built up a significant pension plan and the SASS trustees also agreed to support the purchase. HMRC rules permit borrowing of up to 50% of a pension fund value to finance the purchase of commercial premises. In spite of the constraints in the commercial funding market, David obtained acceptance from three potential lenders. Negotiations were concluded with one of the few building societies still offering commercial mortgages. Terms were agreed at Bank Base + 2.75% (minimum pay rate 3.75%) and the facility was released in two parts: one for the purchase, and the balance of £50,000 for the renovation works.

Colin said ”We were extremely happy with the service provided by David and ASC, who guided us through the arrangements with care and patience.”

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