Clarity and quality essential for the coming year
Mike Starkey, Tenn Capital’s Head of Credit, outlines what is needed for anyone looking to secure a loan with them in 2023:
The common view is that property prices will come under pressure this year, how that plays out, in which sectors and to what extent is still to be seen. However, in light of this we need to be prudent with how we approach transactions, for our benefit as much as yours.
However, we are in the business of lending, we want to lend, our backers want to lend and this is why we are in business. We are very much open to do deals this year – and the process and approach is vital to us successfully deploying funds.
With this in mind, we ask potential clients to remember:
- We need a clear presentation of the transaction, open, transparent and full information is really important.
- We always need a high quality asset as part of the transaction – we lend against prime international real estate.
- We look at the borrowers profile in great detail – we are happy to be flexible to high quality borrowers with a strong asset, income base or a great Bio.
- How the loan is to be repaid is vital – we will look at this closely, work with you to establish what’s reasonable – we are unlikely to lend where there is a speculative repayment strategy.
- We need to understand the rationale – how has this happened, what is the plan, why are we doing this – understanding is key to quality assessment of a lending proposition.
If we get the above – we will invest our time and resource into creating a solution for you:
- We want to lend (I know we have said that but it is important!)
- Our processes are excellent – we will move through transactions as fast as circumstances allow – delays are rarely on our part.
- We are happy to work with you to create a structure or loan basis that works, we don’t need you to know the final answer – we will get there together.
- We see any transaction as a partnership, a joint venture, between us, the borrower and the advisers – a team approach with a common goal.
Remember that we are not restricted by geography, we can lend on prime residential real estate anywhere on earth and we can always add in other security to make the deal work.
We want deals to work.
We look forward to a successful 2023 for everyone.