COMMERCIAL PROPERTY LENDING
The most important part of any property deal, after the deal itself, is how the deal is going to be financed. A good property deal can fail because of poor property financing and a poor deal might even be saved by proper property financing. The market has changed dramatically in the last few years with lenders leaving the market and many borrowers feeling that property funding has simply dried up. This is not strictly true but to succeed, a proposal for a commercial property loan has to be properly packaged before you approach any bank.
No matter how complex or simple a commercial property loan is, there are 4 criteria in every deal. They are (in order of importance):
- The Promoters (the borrower).
- The Project.
- Repayment Capacity (interest and capital).
- Security.
We have developed strong contacts in all the institutions that are involved in this market.
We have 8 stages in the commercial lending process. These are:
- Understand our client's property financing requirements.
- Prepare a detailed commercial property funding proposal for target bank(s).
- Bank analysis, negotiation and credit committee approval.
- Review and analysis of bank offer versus the client's requirements.
- Acceptance of offer. OR Reject offer and/or renegotiate.
- Documentation and negotiation of terms of property loan offer.
- Execution of legal documentation, perfection of bank security and satisfation of all conditions precedents.
- Drawdown of required funds by client.
To discuss your requirements further, contact
Victor Shee (086) 813 6166.