Rikvin Capital provides a short-term loan to finance the purchase of a property in UK
A corporation had their sights set on purchasing a commercial building, but they were facing a major obstacle: a lack of liquidity. Despite having valuable assets, they were unable to secure a loan from traditional banks. This put the corporation in a tough position, as the clock was ticking and the deal was in danger of falling through.
That’s when the corporation approached Rikvin Capital. Rikvin Capital saw the potential in the deal and was willing to provide the financing required to make it happen. However, since there was an existing senior debt funded by a bank, the corporation was not able to provide the first charge on the property.
To secure the financing, the corporation pledged 100% of the shares that owned the property and also pledged the rental income. With these assets as collateral, Rikvin Capital was able to move quickly and provide the corporation with the funds they needed to close the deal. Thanks to Rikvin Capital’s support, the corporation was able to complete the purchase of the commercial building and take the next step in their business journey.
Problem
- A corporation was looking to purchase a commercial building, but was lacking liquidity and was unable to get a loan from traditional banks.
- The client was not able to provide the first charge on the property as there was an existing senior debt funded by a bank.
Solution
- In order to receive funding from Rikvin Capital, the client pledged 100% of the shares that owned the property and also pledged the rental income.
- Rikvin Capital moved quickly to provide the client with the funds required to close the deal.
Related: Read about when Rikvin Capital provided bridging finance for a nursing home in Wales
- Location: Glasgow, Scotland
- Market Value: £2,000,000
- Loan Amount: £300,000
- Loan-to-Value: 30%
- Duration of Loan: 12 Months
- Payment Schedule: Monthly
- Asset Type: Commercial Property
- Completion Time: 14 Days