Case Study · United Kingdom

Short-term loan for shareholders to complete buyout of a partner

30 July 2021

Short-term loan for shareholders to complete buyout of a partner

Rikvin Capital provided a short-term loan to Singaporean shareholders to complete the buyout of a partner in Glasgow. The loan allowed the shareholders to secure the necessary funds to complete the transaction, ensuring smooth operation of the business. With Rikvin Capital’s financing solutions, the shareholders were able to manage their short-term cash flow requirements and focus on the growth and success of the company.

Related: Read about when Rikvin Capital provided a bridging loan for a foreigner to purchase Mayfair property

  • Location: Glasgow, Scotland
  • Market Value: £2,000,000
  • Loan Amount: £1,070,000
  • Loan-to-Value: 54%
  • Duration of Loan: 12 Months
  • Payment Schedule: Rolled Up + Monthly Interest Payment
  • Asset Type: Shophouse with Commercial and Residential units
  • Completion Time: 2 weeks

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FAQ

Can Rikvin Capital fund a shareholder partner-buyout?

Yes. The Glasgow case lent £1.07 million against a £2 million mixed-use shophouse (54% loan-to-value) in 2 weeks for Singapore-based shareholders buying out a partner. Shareholder-buyout financing using property collateral is a clean way to handle ownership restructures.

What collateral works for a shareholder buyout?

Common collateral includes property the shareholders or their company already own (residential, commercial or mixed-use), shares in other companies, or fund holdings. The Glasgow buyout used a mixed-use shophouse as security, with proceeds wired directly to the exiting partner.

How long does a buyout loan typically run?

6 to 24 months, with the Glasgow case at 12 months. Most borrowers exit by either refinancing into a long-term bank loan once ownership is stable, or by deploying business cash flow into repayment. Hybrid rolled-up plus monthly interest structures suit buyouts where cash is tight in the early months.