Member Article

Roma Finance saves Post Office with bridging loan

Roma Finance acted quickly to help a client save a Post Office near Glastonbury which had closed down due to the owner retiring and the client wanted to reopen it as part of his thriving farm shop business.

Alerted to the situation by a new introducer, Roma Finance met with the client to discuss the bridging finance needed to reopen the Post Office and the business aspects of the case.

The proposal was to relocate the local Post Office to the clients nearby, popular farm shop, and the bridging loan of £70,000 was to cover property alterations to the shop to accommodate the new venture and to provide finance for opening stock.

The farm shop was used as security for the loan. It was on four acres of land, and was valued at £140,000 by a local chartered surveyor.

To exit the bridge, the client would take the proceeds from the sale of his main residence which was on the market for £800,000. The client was to move to another property in the village. The client is also looking to raise money via an EIS, which offer favourable tax allowances for investors, to fund relocating the Post Office to a more central village location. £80,000 has already been raised and they now just need another £150,000 to put the Post Office back in to the heart of the community.

Commenting on the case Daniel Hill, Lending Manager at Roma Finance, said: “This was a complex case to work on but as the ultimate goal was to help continue a vital Post Office service to a community, it was a very worthwhile one. The client had a proven local business with a farm shop that had been trading successfully for eighteen months and when the Post Office closed down, took it upon himself to arrange to transfer it over to his nearby shop. There was plenty of equity in the farm shop and land for the loan, and with the sale of his house he had a planned exit route too.

“This is one of those cases that only happen every so often and to help a local community is an added bonus for all involved in the transaction.”

This was posted in Bdaily's Members' News section by Ron Bell .