Below are some examples of deals that we have been involved in sourcing and securing funding offers for our for clients.
Asset Backed Facility ~ £2M
This was a very unique deal for our team as not only was the client a historic brand in global ship building and repair but the borrowing entity was effectively a start-up company having been acquired out of administration only months earlier. The challenge set for us was to raise £2M for working capital against assets which have a positive value as a going concern, however no trading track record. From the outset it was clear that the funding would not be delivered through traditional lending and that it would require a bespoke funder. The key factor in this deal was the quality of the sales pipeline and conversion of same. Working alongside the CFO, we were able to present a detailed weighted pipeline of potential orders and associated cash flow forecasts. An extensive line by line review of all the fixed assets and a detailed review of the leasehold title was undertaken. Our team presented the funding opportunity to a select number of private family offices, securing a term sheet which was accepted by the client and lead to drawdown.
Working Capital ~ £250K
We were engaged to seek and secure short term working capital debt for our client. Our client’s planned expansion into new markets meant that additional hires were required. The funding sought would be used to bridge the gap between paying the new employees’ salaries and the cash receipts from the forecast sales being received. Our team prepared a funding memo which included analysis on past trading and forecast trading. With no tangible security available as collateral, normally required for traditional bank lending, an alternative approach and solution was required. Terms were received from an Alternative Funder, accepted by our client and the funding drawn down.
Invoice Finance ~ £250K
Our client faced the common challenge of funding a highly concentrated debtor book. Traditional lenders and invoice discounting specialists will typically apply a “concentration cap” on single debtors in order to manage their exposure. The invoice discounting product tends not to work efficiently for businesses who have a small number of customers with large invoices. Our team prepared a detailed funding memo and presented to a bespoke funder who considered funding individual invoices by focusing on the quality of the debtor. The invoice was purchased by the funder at a discount with funds transferred to the client.
Bespoke Asset Finance ~ £280K
We secured a funding offer for a bespoke manufacturing machine. The uniqueness of the deal was two fold:- (1) the machine itself was bespoke and was to be assembled from various components across Europe meaning “full title” to it would not be available until it reached UK shores and was fully assembled; and (2) the machine would be required to fulfil forecast sales, therefore the funder had to be comfortable with the weighted pipeline orders and reasonableness of the assumptions underpinning forecasts.
Investment Portfolio Re-Gear ~ €1.5M
Our client was seeking to re-gear a property portfolio consisting of industrial, commercial and residential investments. The purpose of the funding was two fold:- (1) to complete a residential development project to investment phase; and (2) allow for deposit monies for new investment opportunities. Our team prepared a detailed credit memo reviewing the recurring rental income, forecast income and WAULT. LTV 58% with interest cover 3.1x and debt cover 1.4x.
Development Finance ~ £19.5M
We were engaged by a local corporate finance firm to assist with sourcing and securing development finance for their client, whilst they focused on securing the equity contribution. The project was the construction of a 217 nr mixed residential apartment scheme with two commercial units on the ground floor. The total cash requirement for the project was £25M (£18M debt and £7M cash) which represents the land and construction cost. Our team prepared a detailed funding memo and cash flow forecast model which we presented to a number of funders. 4 term sheets were secured with the client selecting one (on advice from their corporate finance advisor). The chosen term sheet was for 82% of construction cost including interest and fee roll up. The equity contribution was used to secure the land and an element of construction costs ~ LTC 82% with LTGDV 55%
Development Bridging ~ £300K
Our team was engaged to source funding offers for a unique scenario involving a mix of asset types. The funding was required to complete the construction of a conference centre at a private estate. The land offered as collateral was across several folios and was a mix of registered and unregistered title. To further complicate the matter, the title deeds also included the private dwelling residence of the borrower. The parcel of land was a mix of agri, commercial farming sheds, cottages and forest. Terms were agreed with a hand picked funder who ensured that it did not breach the mortgage regulations by excluding the private dwelling residence from its collateral package.
Development & Investment ~ £1.4M
Our client engaged us to secure funding for a new commercial development project. An agreed pre-let with a large UK retailer was in place with a short turnaround time to store opening. The remit was to secure 93% of the development cost (£1.5M) as the site was owned outright and unencumbered. The funding sought included interest and fee roll up. Our team prepared a detailed credit memo along with a development cash flow and investment cash flow. We presented to a number of funders including local banks and alternative financiers. We received a number of term sheets with our client selecting one of them and proceeding with that funder. LTC 49% overall / LTC 93% on construction alone / LTGDV of 50% at PC.
Development Finance ~ £2.8M
Our client was seeking to undertake Phase 2 of a mixed residential development scheme, having successfully completed and sold Phase 1 earlier in the year. We were engaged to seek funding offers to assist with refinancing residual landbank debt and the construction finance for Phase 2. Our team completed a detailed memo and cash flow model and submitted same to our network of development finance funders. Following a site visit by two of the funders, a term sheet was secured ~ LTC 84% with LTGDV 57%
Development Finance ~ £4M
Our client engaged us to secure funding offers for the construction of a new 50-bed care home project. The client (existing care home operator) was purchasing the site from cash resources with our remit to source development finance. We prepared a detailed credit memo along with cash flow model to include an investment cash flow. An arranged site visit to an existing care home operated by our client resulted in the funder issuing terms ~ LTC 80% with LTGDV 63%.
Equity Release from Land ~ £700K
Our client wished to raise funds against unencumbered group assets to be used for other development projects that they were undertaking. The unencumbered asset (8 acres of land) previously held an outline planning permission which had expired. The lands remain within the current zoning boundaries for development and are specifically recorded as a “development opportunity site” in the Area Plan. Our team prepared a detailed funding memo and presented to a specific number of funders obtaining a term sheet for an equity release. LTV 50% (including 18 months interest and fee roll up).