Tiuta has secured a seven-figure cash injection, which it says will deliver financial security for the business.
The short-term lender has not revealed the source nor amount but it says this, and an internal restructure of the business, will result in more stability.
It is in the final stages of discussions with potential funders and expects announcements about significant funding lines for lending shortly.
Tiuta has ongoing funding lines through Baltic International Bank and an unnamed central London investment fund.
Mortgage Strategy revealed recently the board of Connaught Asset Management proposes to wind up its income fund series one and two, both of which partly funded bridging lending used by Tiuta.
Connaught announced in May it had contacted investors to tell them the fund was unable to pay their scheduled quarterly interest payments, after Tiuta told the asset manager it would be late paying its own interest payments.
Steven Nicholas, chief executive of Tiuta, says the cash injection is a positive move for Tiuta and secures its foreseeable future.
He says: “This, along with the fact Connaught Asset Management has taken over the loan books associated with series one and two, allows us to focus completely on our existing and new funding lines.
“We continue to have strong support from the likes of Baltic International Bank, and we are on the verge of announcing some exciting news about new funding lines, which we are looking forward to utilise. At present, our focus is on the large bridging loan marketplace and this will remain the case.”
He says it continues a healthy relationship with Connaught Asset Management.
However, they have parted company on funding and it is now focused on its new and existing funding lines.
The lender recently restructured, which resulted in one member of the legal team and one member of the underwriting team being made redundant.