We offer our clients a solution that allows them to access significant capital very fast to move ahead with a project, solve a problem or secure their investment. Every loan is priced to order, but our rates start at 0.55% PCM.
In most of the scenarios we cater to, traditional, long-term loans will be more competitive in cost – this is not something we hide. We price every loan to order, and what we offer will depend on the amount you need to borrow, your plans, exit and the asset at the centre of the deal.
However, while equity release is marginally more expensive than other types of borrowing, it is important to note that this is often negligible compared to the cost of losing an opportunity, investment or defaulting if you need to pay back a debt/expense quickly.
We often work with clients where the cost of losing out on the opportunity is more detrimental financially than the cost of liquidity finance. In these cases, the ROI or future appreciation of the asset/investment (or the advantageous positioning of the borrower after the transaction) is sometimes worth significantly more than what we charge for borrowing.
In other cases, high-net-worth individuals or business leaders approach us needing capital for more personally strategic reasons. Scenarios vary in this respect, but it can be that backing out of a deal would be embarrassing or be detrimental from a reputational perspective. Alternatively, it can be something like if accepting an offer an individual doesn’t have the capital for currently will undoubtedly lead to more opportunities or projects in the future, and so on.
It is also worth noting that in many cases, the ability to complete a transaction quickly, and by a certain date can mean that the overall costs of the deal for the investor are significantly cheaper overall. High-net-worth individuals and their advisors regularly approach us in situations where the fast completion of the deal effectively offsets the interest cost of the liquidity finance.
The reason borrowing from banks is not an option in the first instance is that these lenders are usually simply unable to move fast enough to allow the borrower to draw down funds as quickly as required. Often, by the time a bank approves a loan, the opportunity is gone, or the problem has grown enormously (an individual can’t repay a loan and so on).
We can offer significant finance, and borrowers can draw down funds in as little as 1-2 weeks. While that means taking on a slightly higher interest rate, our clients are unanimously happy to do so when it means that they can complete their deal quickly, they are confident about our ability to fund the transaction, and they can draw down funds in just a few weeks.