Borrowing Quickly Through Structures: What’s possible and what private client advisors need to know

  • Borrowing quickly through structures: what’s possible and what private client advisors need to know

    Borrowing quickly through structures: what’s possible and what private client advisors need to know

The majority of today’s high-net-worth individuals (HNWI) will use a variety of entities to structure their business interests and hold their wealth. Depending on your clients’ nationality, country of residence, and source of wealth, these structures are likely to be very broad. They will usually include both corporate entities and structures for personal wealth planning, such as trusts. Depending on the HNWI in question, some of these entities may be based in the UK, but entities or structures will be domiciled in other jurisdictions.

As a private client adviser, you will often recommend that your client uses these structures if they want to borrow capital. Borrowing via a specific entity often facilitates your client’s ability to move liquidity directly to where it is needed, mitigate personal risk, maintain privacy and usually expedites solid financial, fiscal and wealth planning.

The entity that your client uses for borrowing will often depend on your client’s requirements for the loan (i.e., what they are using it for), where they are planning to deploy the loan capital and how they will repay the loan at term. Despite how common structures are, borrowing via entities of any kind is not necessarily straightforward for HNWI. Many lenders in the UK do not lend to entities (preferring or exclusively lending to individuals), and others prefer not to lend to non-UK entities, which are increasingly common.

Tenn’s Offering for HNWI

Tenn Capital is a short-term lender. We offer unregulated loans of £1 million – £10 million secured against prime, residential real estate in the UK and abroad. We are one of the few lenders to lend directly to entities or against property held through a structure, and we can lend against UK or international property.

Using Short-term Finance

Sometimes a HNWI will approach us if the individual wants to buy property (through a structure) quickly, without a mortgage, they want to break a property chain, buy an unmortgageable property and so on.

However, besides offering loans for these uses, we are happy to see loan capital deployed more broadly. We understand the needs of HNWI and know that they will often require significant capital to pursue opportunities or solve cash-flow problems. Here, borrowing quickly from traditional banks is often challenging because these lenders cannot offer loans fast enough (often in just 2-3 weeks). Through short-term loans secured against property, we offer HNWI the ability to:

  • Invest in ambitious ventures (investments, diversify assets, create liquidity to solve problems etc.)
  • Grow a business (acquisitions, investment into growth, working capital, etc.)
  • Invest in a high-ROI project
  • Buy other appreciating assets
  • Consolidate or pay off debt

Borrowing Through Structures

In theory, we can lend to almost any type of structure in the UK or abroad. We can do this because our team has a track record and experience structuring finance to HNWI around the world, and we have an underwriting process that can cater to different types of ownership structures.

We can lend in deals where the borrower is:

  • A UK or non-UK entity (SPV, trust, corporate entity)
  • A UK-based individual and citizen
  • A UK-based foreign national
  • A UK expat
  • Not a UK citizen and is based outside of the UK

Get In Touch

If you would like to know more about Tenn’s short-term loan offering or if you have any questions about how your HNW clients can use liquidity finance or borrow through structures, get in touch. The team would be delighted to talk you through the possibilities explain more about what we do.