Short Term Funding
Complex, unusual, and time-sensitive transactions often require creative and flexible financing solutions.
Short Term Funding
Complex, unusual, and time-sensitive transactions often require creative and flexible financing solutions.
Creative & Flexible Financing Solutions
Bridging & Development
Short-term loan that provides immediate cash flow while waiting for a more permanent financing solution or clearly defined exit strategy.
Key features:
- Quick approval and disbursement of funds.
- Higher interest rates due to short-term nature.
- Flexible repayment strategy.
- Professional borrowers only.
Mezzanine
Mezzanine financing is a hybrid of debt and equity financing. It sits between senior debt and equity in the capital structure.
Key features:
- Senior lender and often a 2nd charge.
- Short-term funding.
- Pragmatic lending options available and subject to security and profile of borrower.
- High level of due diligence.
Private Equity & Venture Capital
In cases where traditional financing is not readily available, private equity or venture capital firms may be willing to invest in exchange for equity ownership.
Key features:
- Provides equity capital for high-growth opportunities.
- Investors may bring industry expertise and strategic guidance.
- Typically involves a higher level of due diligence.
Key considerations
Holding structure of property
Holding structure of property – personal name or UK SPV (discuss with broker for other structures)
Repayment strategy
Repayment strategy – applicants will need to demonstrate a clear exit strategy of loan agreement.
Experience
Experience – lenders will only consider professionals with a track record in the same country.
Affordability
Affordability – can be tailored to suit the borrower but will always be scrutinised by the lender.
Tax & Legal
Tax & Legal – should always be considered by the borrower.