Care home short-term funding solution
What was the situation?
The client had discussed the requirement with a few short-term finance brokers previously with no success. Many funders have restricted appetite when it comes to the care home market, making it challenging to secure a ‘going concern’ valuation which was necessary to enable us to secure the leverage required.
Funding requirement: £24.7 million gross loan
Value: £42 million
Term required: Three-year term
What was the issue?
The client had discussed the requirement with a few short-term finance brokers previously with no success. Many funders have restricted appetite when it comes to the care home market which proved challenging to get secure a ‘going concern’ valuation which was necessary to enable us to secure the leverage required.
What was the process?
We managed to source a very competitive rate from a lender by providing a thorough presentation to satisfy the client’s requirements through knowledge, expertise, and the right connections. With this we were able to create a bespoke facility agreement which enabled the client to repay large sums when required if they entered into a sale and lease back agreement.
What was the solution?
We secured finance at 6.85% p.a. on a fixed rate for three years which had the flexibility of reducing the loan to £10 million within the first two years and then is fully flexible in the third year.
Testimonial
The lending Director stated: “we were delighted to work with LDN Finance on this complex transaction, the presentation provided by LDN Finance, their knowledge of the transaction and continued support enabled a smooth process, adding value throughout the stages.”
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Testimonials
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