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.”