The maximum LTV for trading properties stands at 70% of the vacant possession value and 60% of operating value.
Fiduciam has been accredited by the British Business Bank as a lender under the government’s Recovery Loan Scheme (RLS). The drive is intended to help admittance to finance for UK businesses as they recuperate and develop following the pandemic. It empowers accredited lenders to furnish facilities of up to £10m with a government-backed assurance to the bank. Fiduciam accepts it will be “critical” in aiding its borrowers tackle the worldwide production network crisis and increasing expense inflation. For properties from which a business isn’t being exchanged, borrowers can take out offices at up to 70% LTV for private and semi-business and 65% LTV for commercial.
All RLS loans granted by Fiduciam will need to be secured against property owned by the borrower, in line with the finance provider’s standard lending policy and criteria.
The company was previously accredited under CBILS, which saw it deliver £175m in loans to support SMEs throughout the pandemic.
Under the scheme, Fiduciam’s loans assisted a wide diversity of SMEs across the UK, including housebuilders, office and retail space operators, hotels, restaurants, wedding venues, nurseries and specialist engineering companies.
According to the lender, every CBILS loan is performing, with many of its clients having already repaid the facilities partially or in full.
Johan Groothaert, CEO at Fiduciam (pictured above), said: “As always, where the banks do not lend, Fiduciam is here to help.
“We fill a gap left by the high-street banks by providing short-term credit to allow businesses across the UK to progress their projects to a stage where high-street bank financing becomes available or business’ revenues can pay off our loan.
“During the Covid-19 crisis, we continued to stand by our borrowers by advancing new loans. “We now want to give them an additional boost out of this crisis with the RLS, as we did with the CBILS.”
Subject to certain conditions, existing debt can also be refinanced with a RLS facility. To be eligible for a loan under the government scheme, the borrower must have been adversely impacted by the pandemic, and the business needs to be viable were it not for the Covid-19 crisis.
The RLS scheme will run until 30th June 2022, although terms will change as per 1st January 2022.