Case Study · United Kingdom

Trust refinances industrial property for working capital

7 February 2022

Trust refinances industrial property for working capital

In a strategic move to fuel business growth, a trust in London, leveraged its industrial property by refinancing it for working capital with the support of Rikvin Capital. With a market value of £9,600,000, the trust secured a loan amount of £5,000,000, representing a favourable loan-to-value ratio of 55%.

Our efficient processes and dedicated support facilitated the completion of the refinancing transaction within just three weeks. This ensured that the trust had timely access to the funds needed to bolster their working capital.

We understand the importance of flexibility when it comes to payments. That’s why we offer our clients a choice between monthly and quarterly payment options. Additionally, we provide a roll-up payment plan to simplify the process further. In this particular scenario, the client, benefiting from a consistent and reliable cash flow, opted for the convenience of a monthly payment schedule over the 12-month loan term.

Our commitment to delivering tailored financing solutions empowered the trust to navigate the dynamic business landscape and drive their expansion plans forward. As a trusted bridge loan company, we remain dedicated to supporting trusts and businesses alike, enabling them to leverage their assets for strategic refinancing and empowering their growth aspirations.

Related: Read about when Rikvin Capital enabled a trust to refinance vacant school property for working capital

  • Location: London, United Kingdom
  • Market Value: £9,600,000
  • Loan Amount: £5,000,000
  • Loan-to-Value: 55%
  • Duration of Loan: 12 Months
  • Payment Schedule: Monthly
  • Asset Type: Industrial/Development Land
  • Completion Time: 3 weeks

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FAQ

Can a UK trust refinance an industrial property for working capital?

Yes. The London case here refinanced a £9.6 million industrial / development land asset held in trust, lending £5 million (55% loan-to-value) in 3 weeks. Trust borrowers are a normal part of our UK book; we work with your trustees and tax advisors to keep the structure compliant.

How is the loan documented when borrowed by a trust?

Usually we lend to either the trustee in their corporate capacity, the trust itself (where the structure allows), or a SPV held by the trust, taking first charge over the property. Personal or trustee guarantees may also be requested depending on the trust structure.

What payment options work best for trust borrowers?

Monthly, quarterly or rolled-up interest. The London trust here picked monthly interest because the underlying business had reliable cash flow. Trusts with lumpier cash flows often prefer rolled-up or quarterly payments. We confirm the right structure during underwriting.