- Client: International client operating in the digital currency sector
- Property Value: Approximately £16 million
- Loan Amount: Approximately £10 million
- Term: 12 months
- Purpose: Short-term liquidity pending the sale of a high-value asset
Enness was approached by an international client seeking short-term finance against a high-value property. The client required approximately £10 million for a 12-month term, with the facility intended to provide liquidity while the sale of another high-value asset was being finalised.
The case required careful lender selection from the outset. The client was connected to a higher-risk jurisdiction, which meant that a number of lenders were unable to consider the application. Their involvement in the digital currency sector added another layer of complexity, particularly given the additional due diligence that can be required when assessing clients operating within specialist or highly regulated industries.
Rather than approaching the mainstream lending market alone, Enness looked to specialist lenders with experience of more complex transactions and international client profiles. The focus was on identifying a lender able to assess the client’s circumstances while considering the proposed security and repayment strategy.
The application required detailed due diligence around the client’s financial position and source of funds. Enness worked through the lender’s requirements with the client, providing the documentation needed to demonstrate the provenance of the assets involved and support the lender’s assessment of the transaction.
The proposed facility was structured against the property at a relatively low LTV, while the planned sale of the client’s high-value asset provided the intended repayment strategy. This gave the lender greater visibility over how the borrowing was expected to be repaid within the proposed 12-month term.
Following the lender’s assessment and enhanced due diligence process, Enness successfully arranged the approximately £10 million bridging facility. The funding provided the client with the liquidity required while the asset sale progressed, without requiring them to wait for the sale proceeds before accessing the capital.
The case demonstrates the importance of specialist lender selection when a transaction involves an international borrower, a complex industry and a substantial financing requirement. Where traditional lending criteria do not readily accommodate a client’s circumstances, a carefully structured application and thorough presentation of the wider financial position can help identify appropriate funding options.
If you or your clients require substantial short-term finance and have an international or complex financial profile, speak to a mortgage specialist to discuss your requirements.
BRIDGING FINANCE IS SHORT-TERM BORROWING AND REQUIRES A CREDIBLE EXIT STRATEGY. DELAYS, CHANGES IN MARKET CONDITIONS OR ASSET VALUES MAY AFFECT THE EXIT AND OVERALL COST OF BORROWING.
Read the UK version of this case study.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Where borrowing is used, your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
