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Tiuta receives seven-figure cash injection

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 of the funding or the amount, but it says this, along with an internal restructure of the business will result in more stability.

It is also in the final stages of discussions with a number of potential funders and it anticipates announcements of significant funding lines for lending shortly.

At present Tiuta have ongoing funding lines through Baltic International Bank and a central London investment fund.

Mortgage Strategy revealed last week that the board of Connaught Asset Management is proposing to wind up its income fund series one and two, both of which partly funded bridging lending Tiuta.

Connaught announced in May that 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: “This is a positive moment for Tiuta and our new seven-figure business financing arrangement secures our status for the foreseeable future. 

“This, along with the fact Connaught Asset Management has taken over the loan books associated with Series 1 and 2, 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.

“We have had a long and healthy relationship with Connaught Asset Management and will continue to do so, however from a funding line point of view we part on good terms and are currently focused on our existing and new arrangements. 

“Our recent internal restructure ensures that we have ‘right-sized’ the business for our existing needs and we will now forge ahead focusing on our product range and our ongoing ability to offer quality bridging finance to a range of existing and new borrowers.”

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