The following are the standard documents required for Mezzanine finance:

• KYC: ID, Address proof, Personal & Professional History, and credit report for all the Borrower, Director, Partners & Major Shareholders
• SPV: Corporate Structure, Directors, Shareholders, UBO, and registered address
• Money Laundering Documents: Assets & Liability Statements, Income & Expenditures Statements, Equity (deposit) proof
• Income proof (may be required): Last 3-year accounts/tax return, 3 Month Bank Statements (Personal & Business)
• Collateral: Full descriptions, brochure, valuation report (if available), tenancy schedule (if applicable)
• Purpose:  Purchase, Refinance, Restructure, Investments, Developments, Business purpose, Refurbishments

How Much Can I Borrow?

You can borrow from £250,000 with no maximum loan size.

How Much Will It Cost?

Mezzanine finance tends to be priced is based on risk rating basis. We do private lending and also work with various associated funds for flexible funding.

Rates usually start at 1% per month.

Key factors affecting the Mezzanine Finance: Please refer our key factor section.

Is Taking Out Mezzanine Finance Risky?

As this type of funding is designed to allow you to maximise the borrowing on your project, you will naturally end up with very high gearing.

When taking out mezzanine finance, you will be personally liable for the debt, whether the loan is made in your personal name or through a limited company. When applications are made in limited company names, the lender will personally tie you to the loan by requiring a personal guarantee.

What Are the Alternatives to Mezzanine Finance?

There can be vast differences in the maximum loans offered by different lenders and as such, it may be possible to achieve the loan you’re looking for from a single lender.

Alternatively, if you’re looking to borrow more and are happy to profit share, joint venture development finance is worth considering.

Finally, if you have additional security available, you may be able to offer it as security for the loan to your senior development finance lender.

The following costs should be considered at the time of availing the Mezzanine Finance:

• Arrangement Fee: The arrangement fee or the facility fee, is usually charged by the lender as a set-up fee for the loan
• Exit Fee: The fee is payable to the lender when repaying the loan
• Broker Fees: These are the fees payable to the Broker for finding the best lenders and managing the application to completion
• Valuation Fees: This is the fee that has to be paid to the valuer, who shall be instructed by the lender to furnish a report on the collateral/project
• Legal Fee: Usually, the borrower would have to pay the legal fee for their own solicitors as well as the lender’s solicitors fee

We always aim to bespoke the ‘Financing Time Plan and Finance T & C, to meet the individual requirement. Our standard indicative timeframe :

• Initial Finance Terms: We usually provide Initial Finance Terms within 24-48 hours.
• Emergency Finance:  We can complete the finance within 48 hours in case of any emergency or distressing situation.
• Standard Finance:   We usually complete Standard Finance within 4-6 weeks.

Notes: Financing time frame & Finance T &C are always subject to providing all satisfactory documentation, full credit underwriting,  valuation and legal.

Please refer to the Knowledge Bank section for more information