Consultancy Services

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Preparing a file for a lender is a meticulous process that requires precision to ensure it meets their requirements and avoids potential objections.

- Project Review and Data Modelling

- Research and Planning

- Pitch Development and Underwriting

- Fundraising Process

- Negotiating Terms and Conditions

- Legal Framework

- Post-Funding Criteria and Conditions

If you require assistance with preparing the above please do not hesitate to contact us. We have over 30 years of experience and can provide support.

Understanding a borrower’s niche and experience level

• Verifying credit and liquidity upfront
• Matching borrowers with the right products instead of pushing pre-packaged terms
• Starting with trust and transparency before quoting rates.
  

Institutional lenders typically have stringent requirements for borrowers, which may include:

1. Creditworthiness
2. Financial Statements
3. Collateral
4. Debt-to-Income Ratio
5. Business Plan
6. Legal and Compliance Documents
7. Experience and Track Record
8. Covenants

• How fresh is the deal?
• Have you approached any other lenders and if so who?
• Has this project been previously declined and if so for what reason (s)?
• Are other brokers working on this opportunity?
• Also it would be good to understand if and what the main challenge has been for getting terms agreed. E.g. Rates, Speed, Term etc.

Providing these items will allow us to move forward with the review process as efficiently as possible.

For commercial loans, lenders will want a clear picture of your business performance, affordability, and risk.

The exact documents vary depending on the lender and whether you're a sole trader, partnership, or limited company, but most applications include the following:

The following will provide insight into risk, repayment ability and asset value.

*Historical Accounts Demonstrates Track Record. *Progressive EBITDA figures are preferred.

• Full accounts (usually last 2–3 years)
  Profit & loss, balance sheet, notes
• Management accounts (recent)
  Especially if your last filed accounts are older than 6–12 months
• Cash flow forecast (12–24 months)
  Shows you can afford repayments
• Business bank statements (6–12 months)

*Business plan (especially for new ventures or expansion)
Includes strategy, market, risks, and growth plans, organisation structure.

• Details of the loan purpose
  e.g. property purchase, expansion, refinancing
• Company documents (if limited company):
  • Certificate of incorporation
  • Memorandum & Articles of Association
  • Shareholder details

• ID & proof of address (passport, driving licence, utility bill)
• Personal bank statements (3–6 months)
• Personal tax returns or SA302s (last 2–3 years)
• Statement of assets & liabilities
• Credit history/consent for credit check

• Property details (if secured on property):
  • Purchase details or valuation
  • Lease agreements (if tenanted)
• Asset details (if secured on equipment, vehicles, etc.)
• Existing loan/mortgage statements

Considerations

• Contracts or invoices (to support income)
• Franchise agreement (if applicable)
• Professional qualifications or CV (for new businesses)

*List of assumptions on marketing, labour costs, purchase costs, legal fees etc

*Purchase price

*Valuation

*Rental income

*Vendor loan or vendor deferment details

*Client cash input (minimum 10% in most cases)

*Exit strategy

Lenders care less about the paperwork itself and more about:

• Can you repay it? (cash flow is king)
• What’s their fallback? (security or guarantees)
• How reliable are you? (credit history + track record)

*Track record to reassure lenders that the project can be delivered to budget and timeframe

*Cost overruns budget available

*Other businesses or assets/shares available as additional security and proof of serviceability

*We seek proven borrowers who can demonstrate a track record of completing projects and profitable ventures.

*A email summary is helpful as fund managers don’t read through large documents. 

*Headlines that encapsulates the essential information for a rapid review. This should include an overview, terms, and return on investment (ROI).

Once we have this initial information, we can complete our review and hopefully proceed to a more formal application.

In order to properly assess the case to see what can be offered, we will require our enclosed forms to be completed and returned.

Typically we would like to get an understanding of:

• The deal - type, size, location, costs.
• What the net profit margin is - JV we like to work with 25% net as a minimum.
• Would you profit share if you cannot input enough capital? If so, how much would you offer?
• The experience of the developer with a CV showing similar projects to the one that funding is required.
• The amount of 'cash' deposit that can be submitted - If you have sufficient funds we can avoid profit sharing.
• Is a Site plan or Schedule of Works available?
• Has Planning been granted?
• If a Day 1 Loan is required?
• Exit / how the loan will be paid back.

We require quality sponsors with a proven track record of delivering such projects and a substantial net worth to provide lenders with confidence regarding cost overruns.

• Borrowers CV & list of previous completed projects.
• Confirmation of how much cash the borrower can put in the project (skin in the game).
• Copy Planning Permission.
• Development Appraisal.
• Comment from an estate agent concerning the end valuation of the properties.
• Copy drawings for site layout.
• Exit strategy refined (details of selling agent and amount or details of refinance lender and their reasoning).
• Security details – Historic valuation reports preferred or full spec of the asset i.e. amount of bedrooms, bathrooms, total square footage etc (details and copies of any tenancies where applicable.) Links to asset or sales particulars welcomed.

Include elements that clearly demonstrate the value proposition, reduce perceived risk, and justify why the JV partner should commit all the funding:

* Executive Summary: Concise overview of the joint venture concept and the funding requirement.

* Problem and Opportunity: Define the market gap or challenge your JV will solve and the size of the opportunity.

* Solution and Offering: What the JV will deliver and how it uniquely addresses the opportunity.

* Market Analysis: Data on target market size, growth potential, trends, and competitive landscape.

* Your Contribution: Intellectual property, expertise, assets, or access you bring to the JV.

* JV Structure and Roles: How the joint venture will be set up, including governance and decision-making.

* Financial Projections: Revenue, profit forecasts, and return on investment for the funding partner.

* Use of Funds: Transparent breakdown of how the partner’s capital will be deployed.

* Risk Management: Key risks and your mitigation strategies.

* Exit Strategy: Potential paths for the investor to realise returns (buyout, sale, dividends).

Focus on showing why your non-cash contribution is indispensable, and why the investor’s capital is well-protected and poised for strong returns.

As a lender for business and property, key questions for borrowers include:

• Business background: What does your business do, and how long have you been operating? Who are your key customers and suppliers?
• Business Plan: A comprehensive plan outlining the business model, growth strategies, and how the loan will be utilised.
• Experience and Track Record: Demonstrated expertise and a successful track record in the relevant industry or sector. Track record of similar developments or activities. 
• Financials: Can you provide recent accounts, cash flow statements, forecasts, full cost breakdown and funding structure. Detailed and audited financial records showing stable income, profitability, and sound cash flow.
• Debt-to-Income Ratio: Low levels of existing debt in relation to income, indicating the borrower can manage additional repayments.
• Obligations: What existing debts or financial obligations does your business have?
• Loan purpose: Is the loan for working capital, expansion, or property acquisition?
• Project details – location, type of development, planning permissions, and expected timelines.
• Property details: Where is the property located, and what is its current use and market value?
• Market analysis – evidence of demand, valuation reports, and potential risks.
• Security: What collateral can you offer, and is there existing debt on it? Personal guarantees?
• Collateral: Assets to secure the loan, such as property, equipment, or accounts receivable.
• Repayment plan: How do you plan to service the loan?
• Legal and Compliance Documents: Proof of legal standing, such as business licences, tax filings, and compliance with industry regulations.
• Credit history: Do you have any outstanding loans or adverse credit events.
• Creditworthiness: A strong credit history and high credit score to demonstrate financial reliability.
• Exit strategy: If the loan is short-term or bridging, what is your plan for full repayment?
• For Developers: They may also request planning documents, builder contracts, and proof of insurance before approval.
• Covenants: Agreement to certain conditions, like maintaining specific financial ratios or restrictions on additional borrowing.