Case Study: Somo’s Valuation Only™ Product Solves Complex Debt Bridging Case.
- Alex Coglan
- Jan 15
- 3 min read
Overview
We’re passionate about helping people find a way forward with their business ventures, especially when the financial situation is complicated. In this recent case, a couple came to us facing serious business debt. By working closely with them and using our unique Valuation Only™ bridging loan, we were able to provide the support they needed to get back on track.
The Client’s Challenge
A married couple running their own business in Manchester approached us with several urgent financial issues.
£125,000 owed to HMRC for a business tax bill
£125,000 due to company liquidators to keep their business trading
Four business loans totalling £150,000
Mortgage arrears exceeding £30,000
Their debts were mounting, and both their businesses were at risk. Our 360promise means we look at every loan independently and from every angle and never decline based on the clients credit file.
Our Approach
After reviewing their situation, we determined that our Valuation Only™ bridging finance was the best fit. Unlike mainstream lenders, this product allows us to lend purely against the value of the property they own, regardless of their credit file. However, when a client comes to us with adverse credit or significant debt, we will only provide bridging finance if there’s a clear and realistic repayment plan in place.
How we structured the deal:
Loan Amount: £546,000
Security: First charge on a buy-to-let property and a second charge on their main residence
Repayment Plan: Sale of the Buy to Let and refinance the business debt post trading again
Total Loan-to-Value (LTV): 70%
Product: Valuation Only™ bridging loan
By focusing on the value of the clients’ property assets and the repayment plan, we were able to offer a fast and practical solution, even though the borrowers had poor credit and existing mortgage arrears.
Results
All business debts, including HMRC and liquidators, were paid off
Mortgage arrears cleared, avoiding penalties
Business continued trading and assets were protected
Immediate creditor pressure relieved
12-month term allowed time to stabilise finances
Why Somo?
Somo’s “Valuation Only™” bridging loan is designed for complex cases, providing fast, flexible funding for UK property owners - even with poor credit.
If you’re a broker or property owner seeking bridging finance for your business get in touch to discuss your options.
FAQs
What is business bridging finance?
Business bridging finance is a short-term loan (typically 1-24 months) secured against UK property, designed to help businesses, property investors, and developers fund time-sensitive property transactions, refurbishments, or refinancing needs.
How quickly can Somo provide bridging finance?
Somo specialises in fast decision-making and funding. Our streamlined process allows us to assess applications quickly and provide funding from within 14 days, making us ideal for auction purchases and urgent transactions.
Do I need good credit to get a bridging loan from Somo?
No. Somo's Valuation Only™ product requires no proof of credit, income, or affordability. We lend based on security property value and your exit strategy, making us ideal for borrowers with adverse credit.
What loan-to-value ratios does Somo offer?
Somo offers up to 75% LTV on First Charge bridging loans and up to 70% LTV on Second Charge loans.
What types of property projects can Somo finance?
Somo can finance a wide range of properties including commercial conversions, mixed-use properties, residential investment properties, and properties purchased at auction.
Can brokers work with Somo?
Absolutely. Approximately 96% of our business comes through brokers. We offer a blended service where we handle all processing, allowing brokers to maintain strong client relationships while we deliver fast, responsible lending. You can find your regional relationship director here.
