Pluto Finance has released a revolving credit facility for established SME housebuilders to allow them to scale their housing delivery without the need to fully fund the completion of individual sites.
The facility is available to housebuilders delivering at least 50 homes per year across multiple sites. The size of the facility ranges from around £10m to £75m, tailored to meet individual housebuilders’ requirements and business plans.
It will support up to 75% of the housebuilder’s land and work in progress with a term of up to five years.
Security will be individually structured and will include first ranking property security, debenture/floating charge, cost overrun, and the cross collateralisation of individual sites.
Jamie Drummond (pictured), lending director at Pluto Finance, said: “We are only too aware of the challenges facing SME housebuilders in the UK in financing their businesses and their ability to deliver much-needed housing.
“We wanted to give them access to a revolving facility similar to that available to the large national housebuilders, which will allow them to make much more efficient use of their balance sheet capital.”
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The launch of the revolving credit facility forms part of Pluto Finance’s broader strategy to provide innovative funding solutions that respond to the evolving needs of the UK residential development sector.
Earlier this month, Pluto Finance appointed Darius Shekarrizi as a lending director for bridging finance. His appointment followed the recent recruitment of lending directors Hugo Trower and Carl Bowcher, which has strengthened lending capabilities and supported a growing volume of opportunities across the market.
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