Tailored Commercial Finance Solutions for Structural Set Ups Like OpCos/PropCos

scenarios unparalleled underwriting banner

A specific sector’s complicated nature may hold up a commercial deal. What’s more, if a client wants to invest via a unique structure, that can add complexity to an already tricky deal.

We’ve seen a few niche industries be threatened with delays in recent months. Dentistry’s, spas, and gyms come to mind.

While a borrower may have experience providing services in a specific sector through an operating company, they may turn to us to invest in a sector specific property itself for the very first time. This acquisition may be structured via an OpCo/PropCo arrangement, which we could accommodate.

But, say it was determined by the industry’s governing body that the property itself required improvement. This may limit the borrower’s financial options, and the deal may need to be structured as a share purchase agreement. All this would require much more due diligence when compared to a traditional/typical commercial loan.

Experience matters

To start with, we’d acknowledge the client’s background in the underlying sector through their operating company. This would reassure us that the borrower at least has experience in their industry.

We’d likely utilise our tier 2 commercial term product, which would offer a competitive solution that met the client’s needs. The 2-year fixed rate would give the client predictable payments and financial stability during the early stages of their acquisition, while also providing them with flexibility to reassess their financial position after two years.

The client could also benefit from our 6 months rolled interest option. By doing so, it could help the client’s cashflow in the early stages of their acquisition, allowing them to focus on the business.

We have these tools for a reason

By embracing all the tools at our disposal, this funding package could allow this client to successfully acquire, improve, and stabilize the underlying property.

The 2-year fixed rate would ensure predictable payments, with the flexibility to exit after 2 years. A share purchase agreement may allow for a tax efficient acquisition of the company and, ultimately, the property.

The 6-month rolled payment option would also help ease the client’s initial cash flow challenges, allowing them to focus on improving their rating, and stabilise the business without immediate financial strain.

In isolation, all these options may appear to be overly complicated, or hard to administer. But collectively, they result in beneficial outcomes for our borrowers. We understand how to look at the bigger picture in finding a tailored solution for individual cases. As we progress in 2025, we vow to always keep an eye on the bigger picture.

FAQs

How do you manage the size and scale of larger bridging loans?

Providing a substantial loan requires more than just capital. It demands robust underwriting and an experienced team. We start underwriting from day one, issuing indicative terms within 4 hours of the enquiry. We carefully review the asset, the borrower’s background, and their exit plan. By addressing any potential hurdles early, we ensure the funding can be delivered on time. Our dedicated team handles everything with urgency and precision to make sure a timely completion of the deal.

Why is flexibility important when funding significant property acquisitions?

Big property investments don’t always fit standard lending models. For example, a large project might involve multiple stakeholders, future planning permission, or phased refurbishment plans. We understand these nuances and structure our loans to match the real circumstances, not just the paperwork. We consider the borrower’s plans for adding value, their timeline for refinancing, and the potential for capital uplift – ensuring the facility is genuinely fit for purpose.

How do you keep transparency front and centre for major deals?

When borrowers take on substantial loans, they need to know exactly where they stand at every stage. We make our process clear from the outset – outlining fees, timelines, and any special conditions. Throughout each case, we maintain open communication with the client and their advisers so everyone stays aligned. This approach builds trust and helps clients feel confident managing larger transactions, even in an uncertain market.