Funding Review

A succinct one-page document that encapsulates the essential information for a rapid review. This document should include an overview, terms and return on investment (ROI).

1. Overview – a clear summary of the deal: amount required, purpose of funds and location.

2. Terms and ROI – proposed structure (debt, equity or credit line), tenor, pricing or return on investment, and the intended repayment or exit route.

3. Financials and business plan – recent financials (latest accounts and current trading) and a brief business plan.

4. Sponsor track record and net worth – a summary of the sponsor's relevant experience and previous projects, together with a statement of net worth.

5. Security and collateral – details of any security or collateral available to support the facility.

To initiate a funding review, please also provide:

• A compelling business plan and use of proceeds

• Historical, current and projected financials

• Balance sheet

• Management team details

• Verifiable asset coverage for funding needs

• Projected annual cash flow of a minimum of 1 million (no upper limit)

• Minimum investment size of 1 million (no upper limit)

• Exit strategy

Early-stage ventures are prioritised with firm contracts or purchase orders from established management.

A short, headline-led format is ideal for a rapid first review. Supporting documents can follow once a lender has expressed interest.

Once received, we will review the submission and revert with next steps.

info@gscorporatefinance.com

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

We offer a consultation service to help you secure faster funding, please ask for help if needed. 

With over 30 years of experience, we can provide comprehensive support.

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

Our services include:

* 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 contact us.

Preferred:

Sweat capital is good but we seek sponsors who demonstrate liquidity, a proven track record and a strong balance sheet history.

A comprehensive CV, assets and liabilities statement and evidence of serviceability.

* Background and net worth of the applicant

* Historical accounts demonstrating a track record

* Progressive EBITDA figures are preferred

* A 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.

Lenders are concerned with:

- Background and net worth of the applicant

- Cash contribution or commitment

- Demonstrating liquidity

- Repayment capability (cash flow is paramount)

- Fallback security or guarantees

- Reliability (credit history and track record)

If cash is low:

Key elements such as a strong track record, an effective exist strategy such as a strong commitment in writing and other assets that can be used as collateral will be crucial in securing an investor.

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

Preferred equity providers simply needs the information placed within the relevant sections below.

Executive Summary: Deal asks (Pref equity amount, position in cap stack), preferred return/coupon, term, total project cap stack, sponsor's equity check

Sponsor Profile: Track record, past deals/exits, AUM, references this carries much more weight than in an NPL deal since you're relying on their execution

Business Plan: Acquisition, refinance, or development/value-add plan; scope of work, timeline, exit strategy

Capital Stack: Senior debt terms (lender, rate, LTV/LTC), Pref equity position and size, sponsor common equity, any mezz waterfall and where Pref sits

Property/Asset Info: Address, asset type, unit mix/SF, current occupancy, photos, site plan

Financials — Historical & Pro FormaT-12, rent roll, budget, pro forma stabilized NOI, underwriting assumptions (rent growth, exit cap rate)

Market Overview: Submarket fundamentals, comps (sales and rent), supply/demand, absorption

Returns Summary: Preferred return rate, current pay vs. accrual, IRR/equity multiple to Pref holder, coverage ratios (DSCR on senior + Pref)

Legal Structure: LLC operating agreement terms relevant to Pref control rights, remedies on default, conversion/step-in rights, subordination to senior debt

Risk Factors: Construction/lease-up risk, market risk, refinance risk at maturity

Timeline/Closing: Target close date, use of proceeds, any time pressure (e.g., loan maturity being refinanced)

For example:

"Preferred equity or mezzanine funding required to finish off 70 units which are 75% complete and build up 50 houses at slab stage. Current debt $10m. Current valuation $15m. Cost to complete $10m. End valuation will be $35m. Time to complete 12 months. Exit strategy is refinance".

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.

*10% cash contribution typically required 

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.