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Money has the power to change lives for the better

The case study below demonstrates how money has the power to change lives for the better:

Background
An NACFB member broker provided Reliance Bank with a lead which came from a charity which is a Buddhist ethnic group. 

Deal Proposed
The charity were seeking to purchase a property to provide social events, English speaking classes and other educational and humanitarian services to the local Nepalese community.
The request was for Commercial & Interest Only Loan of £400,000. The Term loan was for Capital repayment up to 20 years. Although the target property was yet to be agreed the guide price is £600,000. The rate the bank offered was 4.00%. The arrangement fee was £6,000 (split 50:50 with brokers), the security is a First Legal Charge over target freehold property. There will be no early repayment charge.

Solution
Paul Wedderspoon - the Reliance Bank Relationship Manager was referred this case on a Wednesday and issued a facility letter to the customer on the following Tuesday subject to the suitability of the property which had yet to be agreed.

The charity provided validation that their membership fee income will cover the repayments of the loan and allow them to afford the bills and expenses to continue their extensive cultural programme which includes English speaking classes for the charity members and their families.

Reliance Bank were satisfied that the loan repayments could be funded and that the charity could afford the refurbishments required to adapt the proposed property in order to provide catering facilities for cultural events.

Impact
Reliance Bank agreed a loan in principal of £400,000. This proposed funding would enable the charity to buy the property and provide a function space with a capacity to hold 60 people.

The commercial loan was deemed to be affordable and would enable the provision of a safe and valuable facility for a community who are currently lacking resources.

This commercial loan would enable charity members and their families to attend cultural events, such as festivals of dance, music, and food as well as engage in humanitarian, social and educational activities. This gives a sense of permanence for future generations to embed them in the community. 

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