A £600,000 bridging facility has allowed a care home operator to secure a second site and move forward with expansion plans that had stalled under mainstream lending criteria.
Norton Broker Services supported the borrower in arranging the commercial bridging loan from Black & White Bridging, providing funding for the acquisition of an additional property.
The operator had sought to increase capacity by purchasing a second care home, but was unable to access a traditional commercial mortgage due to its existing site holding a Care Quality Commission rating of “Requires Improvement”. Most high street lenders typically require a “Good” rating before considering applications.
Although operational improvements had already been made at the existing home, delays to the reinspection process meant the updated rating had yet to be formally confirmed, creating a barrier to longer-term finance.
To ensure the acquisition could proceed, a bridging solution was structured to deliver 100% of the required funding. The loan was secured against both the current care home and the new property, allowing the borrower to move ahead without waiting for regulatory timelines to catch up.
The deal enables the business to expand immediately, with the second site expected to increase capacity and support further recruitment, while also strengthening income and profitability.
Once the updated Care Quality Commission rating is confirmed following reinspection, the borrower intends to refinance onto a longer-term commercial mortgage.
Mike Underwood, relationship director at Black & White Bridging, says: “This case highlights how bridging finance can provide practical solutions to businesses and perfectly demonstrates how it can help SMEs grow and seize opportunities.
“The team at Norton presented the case perfectly to enable the funding to proceed quickly.”
Daniel Jones (pictured), bridging and commercial sales manager at Norton Broker Services, adds: “As the ability for the borrower to obtain a term loan was impeded due to the CQC rating, a bridging loan was the only option for them to raise the finds needed to proceed with the acquisition.
“Mike and the team at Black & White Bridging quickly understood how to structure the deal and funded quickly for the acquisition to take place.”
