Some More Case Studies

Solution: the client was advised to buy the share capital of the vendor company to reduce the Stamp Duty liability. This also assisted the tax liability of the vendor. Thereafter, I arranged a long term finance facility of £1 million based upon the valuation as opposed to the purchase price. 

A client is able to buy residential properties at a 30% discount to value because of a variety of distressed situations. He buys and sells 15 houses per week. His private funder charged 7% annual interest on the monies as well as a 25% share of the profits. 

Solution: Our Finance contact arranged a facility of £4 million to discharge the private lender and provide an additional £2 million for working capital. The lender charges only 9% interest on the finance and no profit share.

100% Property Development Finance: A client found an opportunity to build out 8 apartments in Surrey to achieve a profit of circa £1 million. Unfortunately she had no available cash to input into the project. 

Solution: A high net worth individual provided the equity required (cash input of £400,000) in return for 50% of the profit i.e. a return of 125% on the investment. This office also arranged the debt finance. 

100% Property Finance with no Profit Share: A developer client was involved in two projects and had all his working capital tied up. He came to my office with a new proposal requiring £1.3 million to build out 8 houses and 6 apartments. He confirmed that he had no available cash. 

Solution: Our finance contact demonstrated to a specialist lender that the client had built out during his career more than 40 units. Because of the client's experience and the potential profit of the project, this office arranged the full requirement of £1.3 million (with no profit share) to build out. 

Social Housing: A client was invited by a local authority to tender to build out 2000 houses for the Council. He won the tender but could not fund the project. 

Solution: Our finance contact brokered a joint venture with an overseas construction company who is funding the build out. Finally, an insurance company will be the ultimate owner on a 2.7% yield. 

Director with Personal Guarantees: A former Director of a failed company had personally guaranteed £600,000 worth of unsecured creditors for the company. The client faced bankruptcy. 

Solution: Our finance contact arranged the funding and worked with an Insolvency Practitioner to organise a single premium IVA for £150,000. The creditors accepted and the client was overjoyed.