If you have high-net-worth individuals as clients, you’ll know – or advise – that they invest most of their assets aiming to maximise returns and mitigate risk. It’s a logical and usually advantageous strategy. On the flip side, however, when opportunities come up, your clients will often find themselves short of the capital they need to invest.
Lenders often want to lend to your clients, especially when they have a high profile or significant wealth. The problem is that lenders – banks in particular – usually have underwriting processes that cater to relatively straightforward deals. Finding a lender to finance a client’s latest property purchase is unlikely to be too challenging. Finding a lender that is happy to let your client borrow several million pounds to buy a business? A different ball game entirely.
If your client needs liquidity to invest in opportunities but they don’t want to sell their assets to raise capital to do so, bridging finance is a perfect solution.
Secured against prime property, Tenn can offer your clients’ a three-to-36-month loan which can be used for various purposes, including investments. Your client will retain full use of their property for the duration of the loan and won’t have to sell assets to raise significant capital.
Which Opportunities Can Tenn Finance?
In short, you tell us. Tenn will consider lending for nearly any type of deal that requires capital of £1 million or more.
While every deal will be unique, we understand the kinds of transactions likely to interest your clients, and we are open to lending for these. We can lend to borrowers looking for capital to purchase a company, invest, grow a company, invest in stocks or shares, buy real estate, buy other assets or secure a deal. Even if your client wants to seize an unusual opportunity or they need capital to fund a bold investment in search of high returns, we will consider lending.
As always, there are some limitations. We don’t provide property development finance unless the property is located in Jersey or Guernsey. We also don’t lend if there is planning risk against a single asset.
These scenarios aside, we are open to hearing what your clients need. Our bottom line? Your client’s numbers need to be completely rock solid. We don’t ask for future facts and figures your client can’t possibly know ahead of time, but we ask they come to the table with realistic projections and plans. They will need to explain the whole picture to us and present a solid exit plan that is financially sound. The more ambitious the project your client needs capital for, the stronger their case will need to be from the get-go.
What Tenn Can Lend
We don’t like to give ambiguous answers, but it’s impossible to provide you with a fixed percentage or figure. Generally, we can offer about 80% loan-to-value (LTV) using a single property as security. We don’t have a maximum loan amount, and we are comfortable financing very large projects.
Ultimately, how much we can lend depends on your client’s profile, the value and location of the real estate they will use as security, and what they want to invest in. We will always lend if we can, but we may offer a lower loan-to-value ratio to mitigate risk if your client’s investments or plans carry substantial risk. For the right deal or borrower, we may be open to lending more than 80% LTV, although we will likely ask for additional security in the form of other property or assets.
We are in the business of lending, and we want to help you find easy and workable debt solutions for your clients. If we can lend, we will.
Contact Us
If you have a client that wants to access capital to invest in an opportunity, reach out to us. We can chat through the scenario and let you know if we could lend, roughly how much we can offer your client and how estimate how quickly the transaction could be completed. Initial discussions are always informal, and we don’t need any personal information about your client.