Analysis revealed around 8,131 business applications for loans and overdrafts by retailers were rejected by other lenders in 2012 worth up to £497.37m.
In a marketing refresh, Castle repositioned itself as a solution to the UK’s current lending gap, targeting borrowers with at least 40% equity in their homes with its Partnership Mortgage solution.
Castle Trust, which lends against the property as security with no monthly repayments, said business owners can avoid complex financial strength assessments, early repayment charges and improve cash flow.
Castle Trust’s Partnership mortgages are only available through intermediaries and repayable at point of sale, at 40% of any profit from the sale with no interest payable if the property value declines.
Sean Oldfield, chief executive officer, Castle Trust said: “Equity loans enable borrowers to raise money without having to increase their monthly repayments. Because an equity loan is separate they don’t disturb any existing special mortgage deal they already have.”
Castle Trust was launched in October 2012 with £65m of capital from US investment firm J.C. Flowers & Co.
