Investing Capital In Your Business For Growth And Expansion

World Economy

The 80’s was the start of the bull market economy. You could invest your money in bonds which were paying out at a flat 15% interest rate, risk free. It was a good time to invest in companies because the corporations were forced to compete with 15% rates to be more efficient and investing their capital wisely.

Winding the clock forward to present day, the federal reserve have been printing money excessively and have been giving corporations access to cheap loans. As a result, companies are over valued through stock purchases, share buybacks which means they are not investing in their future growth. The over supply of money printing is reshaping the global economy which is non sustainable and there is now too much corporate/ private debt. Read more

Wind Power Funding | Renewable Energy Finance

Wind energy is the motion of air molecules driven by the Earths rotation this causes difference in atmospheric pressure. The term “wind power” describes the air flow that generates mechanical power.

Wind Power Technology

We have been using wind power for various reasons since ancient times. In the Middle East, buildings have been specifically constructed to act as windcatchers for ventilation. Windcatchers can be used to manage airflow in and around buildings and harnessed in different ways: uni-directional, bi-directional, and multi-directional. The construction of a windcatcher in architecture depends on the direction of airflow at that specific location.

Further developments in wind power technologies has allowed us to build larger, robust equipment. This has enabled humans to explore far off lands through ship building and prosper through agriculture – wind mill technology. Read more

Project Funding Risk

Funding Risk - Prestige Capital Partners

Every project is different so it is not possible to compile an exhaustive list of project funding risk or to rank them in order of priority. What is a major funding risk for one project may be quite minor for another. One can discuss the risks that are common to most projects and possible avenues for minimizing them. However, it is helpful to categorize the risks according to the phases of the project within which they may arise: (1) the design and construction phase; (2) the operation phase; or (3) include both phases. It is useful to divide the project in this way when looking at project funding risks because the nature and the allocation of risks usually change during and between constructions.

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Managing Risk – Assess Your Project

In our “writing a business plan”  article, we highlighted “managing risk” in a bullet points because it’s an essential element in your business plan. This article explains further why we feel that this (managing risk) is another factor to consider when writing a business plan. Strictly speaking, these aren’t the only risk assessments your company should undertake but it is a small guideline to show you how one factor can possibly effect the other.

Identify threats in your risk assesments
(c) Prestige Capital Partners

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Large Project Finance | From StartUp to Project Completion

There’s different options for project principals to raise capital for their project. Corporations can apply for large project finance from institutional investors, venture capital and boutique banks. These financial bodies can utilise bank instruments and private placement platforms to build up initial funding to start cash flow and progress with funding activities.

Since Brexit (UK exit from the EU) the worlds markets are looking very uncertain. The Pound is weak against the Dollar and Euro thus creating instability and a knock on effect to other EU countries. Staying afloat is the first thing that every CEO worries about.

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Real Estate Loans For Developers

Developments can cost millions to purchase or build thus potentially command huge rental incomes. Despite the upside and potential revenue which projects can generate through commercial transactions, funders most prefer to help those that have flourished or have some equity in place. This makes it rather difficult for startup development companies to get the necessary seed funding.

Construction Loan

We are here to help facilitate your construction loan from our partners. These include finance for from housing, offices, mixed use, Government buildings and retail outlets

Industrial Finance

Secure your manufacturing plant or warehouse facility via our network of reliable funders. Especially geared towards those situated in the US.

Retail Finance

Looking to build or purchase a shopping malls, human activity complexes? Our partners have a proven track record for financing in this sector.

Hospitality Finance

Looking to acquire or develop a hotel or hospitality complex? Contact us now! Hotel finance available for those situated in the US.

Acquisition Funding

If you are looking to acquire some real estate be it a shopping mall, industrial warehouse, office building etc., we will be able to assist. Acquistion finance for mergers and acquisitions in the US.

Student Housing Loan

Looking to develope Student Housing, multi storey or blocks of residential flats? Look no futher for your Student Housing development loan especially in America.

Adaptive Use Loans

Adaptive Use loans are used for example converting an office building into a residential building. These can often be quite complex transactions however we are confident that our partners will be able to perform such transactions.

Real Estate Loan

Do you have a large Real Estate transaction you wish to source funding for? Our partners have a proven track record for Real Estate transactions especially those situated in the US.

Land Finance

Are you looking to develop on prime land for agricultural or festival use or perhaps you want to purchase land for equestrian use? We can assist in your funding needs

There are a number of options to choose from when applying for a real estate loan. Lenders can finance real estate developments in debt, equity or hybrid models giving the developer flexibility of the loan.  If the loan is for a large project yet to be developed, the lender would normally issue stage-payments which matches the development stages.

Real estate loans can include non-recourse and recourse financing. Recourse debt is the lenders’ ability to take the assets of the borrower if the debt is not paid. Non recourse is whereby the lender can come after the assets of the company but not the assets of the borrower. If funding is for a development project, the funder would need to see items such as land titles and government permission to be able to develop on the land.

There are selection of ways lenders will look to chose how to fund a development project.  Some borrowers may seek seed funding from private entities however there are plenty of choices to choose from ranging from retail banks, investment banks, hedge funds, private equity firms etc., Some funds specialize in real estate such as REITS.

Increase ROI On Commercial Portfolios

There are funds which specialize in taking in properties into the fund and in return offering a set interest rate per annum for the property entered into the fund. These are very specialized funds which are looking to maximize latent and/or non performing assets. The asset owner which in this example would be the real estate owner would receive further ROI on their property. Contact us if you would like to find out more.

Development Projects

Our real estate funders are able to structure a loan which is suited to the needs of your development project. The type of project for whom we facilitate financing include but are not limited to:

  • Industrial Projects – Waste Management Projects/Treatment Facilities/Waste-to-Energy/Alternative Energy/Bio-Fuel Projects
  • Government Projects – Infrastructure
  • Residential Projects – Housing/Student Housing /College Campus (Schooling) Projects/Hotels
  • Recreation Centers – Amusement Parks/Resorts/Casinos/Other Entertainment Spaces
  • Mixed-Use – Shopping Centers/Hospitals
  • Commercial Properties – A group of apartments consisting of 5 units or more is considered a commercial building.

Startup Development Loan

When applying for funding, you might already have a structure on the site. Lenders might put a lien on another passet to secure repayment obligations. Other funding opportunities can also include a comprehensive approach providing on and off balance sheet solutions. Just like any other real estate investment, lenders will make some considerations such as:

  • the viability of funding a development project such as it’s location and existing infrastructure
  • permits, agreements and local authority licenses – (use of greenfield/brownfield)
  • and in some circumstances they may also ask for resumes of the project principles.
  • Projects should contain long term job creation, sustainability and focus on quality of life issues for employees and surrounding neighborhoods.

In some scenarios our funders will provide an extra cushion in funding as a contingency measure as they are well aware that development projects can run over budget. Whilst most funders will fund up to what a project requires to complete the project, we do have a handful of funders who will fund over and above anticipated projected capex. Some of our funders are incredibly nimble and flexible and understand that nuances in large project finance. Quite often everything has to fit within a conventional banks rigid criteria and as such. This can imply the bank is looking for reason why they can’t finance a project. Our funders instead are looking for solutions and reasons why they can finance a development project.

Multi Family Loan

What qualifies as a multifamily building?

Any building consisting of four or five separate stand alone family dwellings is considered a “multi-family structure”. Development loans are available for the construction of a multi-family properties. Owners, developers or investors can also apply for finance that helps to fund “shovel ready” projects to acquisitions.  Although multi family loans can be obtained pretty easily, it has been known that some lenders  offer fixed rate loans with terms as long as ten years and LTV ratios at 80 percent.

Multi Family Occupant Buildings (MFO’s)

Have you considered buying a multi family occupant building or are in the process of buying one? This is when, instead of buying say 6 multi family homes, you buy a building which consists of 6 homes. By purchasing commercial property this way, you get one large mortgage instead of being limited to “x” number of units plus you can have one property manager instead of say 2 managers.

In the US, the minimum down payment on a commercial property can be upward of 20%. This can be problematic to investors some regional banks have tightened their lending criteria. With us, we have solutions to help investors who need commercial or residential real estate finance.

Once an investor has paid off the principle and able to create equity, they can make money on their assets. Our products provide an effective way for investors in real estate and help those climbing the property ladder. Investors can learn how to make money in real estate by inquiring through our website.

Bridging Loans

What is a Bridge Loan?
Bridge Finance usually implies a short term mortgage loan normally underpinned by property of some kind of collateral. It is designed to be an interim loan on a short term basis until a more long term loan has been agreed. Because of this, bridge finance can be a rather expensive way to raise capital.

A “bridge loan” is a short-term mortgage used to acquire a property quickly. Quite often, bridging loans are referred to as “private money” or “hard money loans”. Generally speaking, this financing option is used until permanent financing is found. The commercial property is resold, or it is rehabilitated and then resold.

Who needs this kind of loan?
Property investors who “fix and flip” properties are the most common customers who apply for a bridge loans. The advantage of a bridge loan is:

  • It allows investor’s money to go further
  • Bridge loans may have less requirements than applying for a bank loan

Private funding is an option for megaproject entrepreneurs who need a development loan. They can differ from main stream bank loans because commercial banks have follow a set of strict underwriting guidelines.

Real Estate Loan Terminology

Loan To Value (LTV)

What is loan to value?
Loan To Value is is the loan amount vs the value of the asset as a percentage. For example; an asset may be worth $100 million and the loan needed is $60 million thus the loan to value is 60%.

Loan To Cost (LTC)

Loan To Cost is a term used to describe the amount of borrowings in respect to the amount of costs associated with the construction of the property until completion. There are two inclusions in the loan:

  • Hard costs – which are costs incurred to start the developments which would almost include the land fee and construction expenses.
  • Soft costs – are charges made buy lawyers, architects and other overhead costs.

Gross Development Value can help you work out the financial viability of the proposed property development project, it is most widely used for large projects. It is the anticipated value of the property/development after completion of construction.

Please note: Our Disclaimer Applies

Your property may be repossessed if you do not keep up repayments or any debt secured upon it.

Writing A Business Plan

You might agree that writing a business plan can be challenging. Business plans are “projected” 3-5 year road map that outlines where you intend to take your company. From humble beginnings your idea might be to grow, make money, manage risk and sell the business when hitting retirement age. Below we outline major parts of a business plan that makes an impact with our funders.

Knowing how to structure and write an effective business plan is key to get your project seen by any funder. The business plan template written below can be used for any business be it for a large project or for a small business. It is worth time, money and effort paying out for a professional who provides a business plan service. They ‘go with a fine tooth comb’ and iron out mistakes and see areas where plans can be improved.

How To Write A Business Plan

We previously wrote about the importance of writing an eye catching executive summary. Writing a business plan that is packed with credible sources, factual information and relevant illustrations that best represents your business model. Our business plan template has been written from a startup prospective. If you are in the position of growing or expanding your business, you can refer back to this in time and see the developments and reassess your goals.

There are some common core elements to put into a business plan (eg; Company information and team, marketing plan and SWOT) It’s a good idea to structure the business plan with different titles per page and provide the lender as much detail about your project. Don’t be shy or hold back, this may count against you as they need to know everything. Every funder who reads a business plan wants to know how your business project can benefit people, how you plan to make money to pay them back (and what you can offer them) They can determine a projects value by using accounting skills, financial ratios and risk equations. It might be worth considering that if your project does involve patent technologies that aren’t currently registered, to do this before applying for funding.

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Oil and Gas Funding Solution

Years ago, the petroleum industry relied on rig counts to drive energy prices forward to see rewards in pure crude oil and natural gas trading. Today they remain key drivers of industry growth despite a slowing economy, a need for greener technology and the market becoming more complex in general. Thus said, there is still a high number of wells drilled and enough oil in the mature oilfields to see through the next 40 years. Corporations have to change their methods to include technological advances through research to help find new opportunities in the market.

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