The lender is providing the loan to Starship Group to finance the acquisition of the land and all associated build costs.
It is the fifth team the pair have worked together, with plans secured to demolish the former surgery in Heswall, Wirral and replace it with nine apartments (pictured).
It is estimated the development will be worth around £3.1m once completed, which is expected to be in the spring.
BFS managing director Steve Barber said: “We have completed a number of deals with this client in the past and have huge confidence in their knowledge, understanding and capabilities.
“We were able to take an independent view on their borrowing request and have agreed to finance the entire deal.
“The site is in a great location, very close to the town centre and the apartments are designed to a particularly high specification offering strong returns on investment.”
A Starship Group spokesperson added: “We have built a solid working relationship with BFS over many years. We regard them as our partner and an extension of the wider team.
“We collaborate with them at the very beginning and value their insight and input. They offer sound advice and present viable solutions to the most complex of financial challenges.
“This is a great scheme and we now have all the foundations in place to get things moving in terms of construction in the weeks ahead.”
BFS has also added Anne Gullon to its sales team as she takes on the role of business development manager in Yorkshire and the North East.
Gullon has more than 20 years’ experience in the industry working in business development roles for lenders and finance brokerages.
“A well-known figure across both regions, Anne will introduce the firm to existing contacts while strengthening the brand amongst new potential clients,” BFS said.