Client Profile:
- Nationality: High-risk jurisdiction
- Industry: Digital currency
- Property Value: Approximately £16,000,000
- Loan Amount Requested: Approximately £10,000,000
This client required a bridge loan of approximately £10,000,000 for a 12-month term. The loan was to provide liquidity while the client finalised the sale of a high-value asset.
This client's nationality posed a significant challenge, and lenders were cautious. Many financial institutions have stringent policies regarding clients from certain jurisdictions.
The client's involvement in the digital currency industry added another layer of complexity. Traditional financial institutions often view the digital currency sector with scepticism due to its perceived association with volatility and regulatory uncertainties. This made it difficult to find a lender willing to provide a substantial loan to a client operating within this space.
Despite the significant challenges, a tailored approach was adopted to secure the required financing:
- The search for lenders was expanded beyond traditional high-street banks to include specialist finance providers with expertise in complex cases. These lenders were more familiar with the nuances of the digital currency sector and the specific challenges associated with lending to foreign nationals.
- An enhanced due diligence process addressed concerns about the client's nationality and industry. This involved providing detailed documentation to prove the legitimacy of the client's funds, the legal origins of their digital currency assets, and their compliance with international regulations.
- The loan was structured to mitigate the perceived risks. This included offering the property as collateral with a conservative loan-to-value. Additionally, a clear exit strategy was outlined, with the bridge loan set to be repaid from the proceeds of the asset sale within the 12-month period.
After a rigorous process, a suitable lender was secured, and the bridge loan of approximately £10,000,000 was successfully arranged. The loan provided the necessary liquidity for the client to manage their financial commitments while selling their high-value asset. The lender was satisfied with the enhanced due diligence, the loan structure, and the clarity of the exit strategy.
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