Case Study · United Kingdom

Entrepreneur leverages industrial property to expand operations

10 February 2022

Entrepreneur leverages industrial property to expand operations

In an inspiring success story, an ambitious entrepreneur in Birmingham utilized their industrial property to expand their operations with the support of Rikvin Capital. With a market value of £2,000,000, the entrepreneur secured a loan of £625,000, resulting in a favourable loan-to-value ratio of 31.25%.

Our efficient processes enabled the completion of the loan transaction within just three weeks, providing the entrepreneur with expedited access to the necessary funds. We provide the flexibility of both monthly and quarterly payment options, in addition to a convenient roll-up payment plan. The client, having a consistent and reliable cash flow, chose the monthly payment schedule.

By leveraging their valuable industrial property, the entrepreneur capitalized on the growth potential and maximized their business opportunities. Our commitment to delivering tailored financing solutions empowered the entrepreneur to embark on their expansion journey confidently.

As a trusted bridge loan company, we continue to support entrepreneurial ventures, enabling them to leverage their assets for strategic growth. Our expertise and dedication facilitate the realization of business goals, fostering entrepreneurial success and driving economic progress in Birmingham and beyond.

Related: Read about when Rikvin Capital enabled a car collector to purchase the rare Bugatti Chiron Super Sport

  • Location: Birmingham
  • Market Value: £2,000,000
  • Loan Amount: £625,000
  • Loan-to-Value: 31.25%
  • Duration of Loan: 12 Months
  • Payment Schedule: Monthly
  • Asset Type: Industrial Land
  • Completion Time: 3 weeks

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FAQ

Can I borrow against an industrial property to fund business expansion?

Yes. The Birmingham case lent £625,000 against £2 million of industrial land (31.25% loan-to-value) in 3 weeks, releasing capital for an entrepreneur to expand operations. Industrial assets are well-understood collateral and support flexible repayment structures.

How much can I borrow against UK industrial land?

Typically up to 60 to 70% of valuation for built-up industrial premises, lower for vacant or specialist sites. Loan-to-value depends on the asset specification, location, and whether the borrower also occupies the property. Owner-occupied industrial typically gets the higher end.

What repayment options are available?

You can choose monthly interest payments (the option used in this Birmingham case), quarterly payments, or rolled-up interest paid at the end of the term. Borrowers with steady operating cash flow usually pick monthly; those preserving liquidity prefer roll-up.