presentation 2016 - whole

R & E Finance is Authorized and Regulated by the Financial Conduct Authority. Company Number302663 Members of the Turnaround Management Association and the National Association of Commercial Finance Brokers

Specific Solutions for

Specific Problems 2016

Anne Gullon


07557 525766 I 01302 [email protected] I www.refinanceuk.com

Ainmoor Grange, Mickley Lane, Stretton, Derbyshire, DE55 6ES

mailto:[email protected]


PRESENTATION

The purpose of this document is to outline some of the services provided byR & E Finance. The list is not exhaustive as my colleagues and I have tried to create specific solutions to the specific situations your office will possibly encounter. The case studies are based upon recent problems that have confronted clients introduced to this office. In turn, if you do have a client or situation not covered by the enclosed, feel free to contact myself, or my colleagues, to discuss how this office may be able to help.

I hope the attached is of interest to you and I look forward to working with you.

Thank you for your support.

Anne Gullon


CASHFLOW/WORKING CAPITAL

Revolving cash-flow facilities are available for a term of up to 3 years on an unsecured basis for a variety of purposes:

Case Studies

A professional buying into a practice partnership.

A professional buying out a partner.

A General Practitioner needed funds to refurbish his surgery.

A seasonal hotel paying the annual tax bill.

A firm of solicitors paying their annual practice tax bill.

A subcontracting builder under pressure from the business bankers, needing 4 weeks wages whilst debtors paid outstanding invoices.

A restaurant wishing to refit their fixtures and fittings.

A manufacturer needed to pay his VAT bill.

A developer needed £100,000 to complete the purchase of a plot of land.

A convenience store needed to purchase stock and fixtures and fittings to expand his selling floor space.

Anne Gullon

PRIVATE FUNDING


£0-£10m (sweet spot £200k-£4m) of new funding needed Typically debt structures i.e. not looking to take equity Scenarios:

Company/asset acquisition Bridging finance Liquidity/working capital requirement Turnaround and restructuring finance Refinancing

Will also look at 2nd and 3rd charge positions Term - up to 3 years Sectors: broad appetite Geography: Europe (mainly UK & Ireland) Completion on facility draw down can be within 48 hours

Anne Gullon#07557 525766 I 01302 812188

[email protected] I www.refinanceuk.com Ainmoor Grange, Mickley Lane, Stretton, Derbyshire,


PRIVATE FUNDING


DE55 6ES

REGIONAL FUNDS


There are a host of regional funds now able to help businesses when the high street banks cannot help. Such facilities are on an unsecured basis.

Case Studies

A newly qualified Barrister needed £12,500 on a term loan to buy into his Chambers.

An Engineer was expanding at a great rate and needed £40,000 for Working Capital.

A software company had signed a very large contract which would not release funds for 3 months. A short term facility of £20,000 to bridge the gap was approved and drawn down in days.

A sub-contracting builder with poor accounts and adverse credit needed £30,000 to buy materials to commence a lucrative contract.

A sub-contracting shop fitter liquidated his company due to the main contractor closing down. The major retailer offered to deal directly with the sub-contractor. A new company was set up to fulfill the contract and was funded by way of a regional fund.

A start up bistro/cafe needed £20,000 for fixtures and fittings.

A tenant of a business centre wished to buy the freehold of the multi- let property which had a restrictions Covenant within the Title.

REGIONAL FUNDS


Anne Gullon07557 525766 I 01302 812188

[email protected] Iwww.refinanceuk.com



INSOLVENCY


During the life of a business, it is possible that the business encounters a situation beyond the management's control. Such events can include:

The cancellation of an order A payment dispute with a customer Non payment by a customer Illness of a Partner/Director Aggressive action by a creditor or bank.

In such circumstances the management of the business may struggle to obtain positive advice from the usual people consulted. We at R & E Finance have many years experience of advising sole traders, partners and limited companies, how to survive in such trying circumstances and ensure business continues. Such examples include:

Case Studies

Case Study 1A construction company went into liquidation as a result of receiving poor advice. Subsequently this exposed the company officers to liability under their Personal Guarantees. The introducing banker requested assistance from this office. After obtaining Counsel’s opinion, the Liquidator was approached and funds were raised allowing the liquidation to be reversed.

Case Study 2A company Director approached this office and advised that his company was in a CVA. The request was to raise £160,000 to discharge the CVA by way of variation and release Working Capital to grow the business. This office was advised that the company accounts did not show very good profits. Subsequently a facility was arranged for the company to borrow the monies without demonstrating income and secured on a residential property even though the property was in a Trust.

INSOLVENCY


Anne Gullon07557 525766 I 01302 812188

[email protected] I www.refinanceuk.com Ainmoor Grange, Mickley Lane, Stretton, Derbyshire, DE55 6ES


INSOLVENCY (Cont)


Case Study 3A client is self employed and had a large HMRC liability which resulted in a Bankruptcy Petition being issued. The client was due to inherit a third of a parent's house once Probate was concluded. However, HMRC would not wait. Unfortunately the client could not demonstrate serviceability for a re- mortgage. Therefore, this office arranged a second charge bridge secured on the client's house without demonstrating income to discharge the Bankruptcy Petition. The bridge was arranged whereby the interest was rolled up and no monthly payments were necessary. Once Probate was concluded, the bridging loan was discharged.

Case Study 4A client is a discharged bankrupt. Unfortunately, the Trustee in bankruptcy required £80,000 in lieu of the Trustee's interest in the private residence. The client could not re-mortgage because of the bankruptcy. Therefore, this office arranged a second charge 10 year loan without demonstrating income, secured on the private residence to discharge the Trustee's interest.

Case Study 5A retailer operating as a limited company was struggling with historical unsecured creditors of £100,000. The main cause of the company’s difficulties was excessive rent and rates because of the high profile location of the business premises. The core of the business was very profitable and therefore the directors decided to relocate to cheaper premises. However, whilst this action stabilised the company’s ongoing cash-flow and overheads, it did not deal with the problem of the £100,000 in unsecured creditors. Therefore, this office introduced the client to an Insolvency Practitioner who structured a liquidation of the company to write off the £100,000 in unsecured creditors. Subsequently a new limited company was created to carry on the retailing business and this office arranged £50,000 of Working Capital despite the historical credit problems.

Case Study 6A client lost a major Court case and was made bankrupt. The client could not prove income. Despite these issues, a second charge facility secured on the private residence was arranged to enable

INSOLVENCY (Cont)


the bankruptcy to be annulled and restore the client's credit rating.

Anne Gullon07557 525766 I 0302 812188


mailto:%20%[email protected]

INSOLVENCY (Cont)


Case Study 7A dentist was a discharged bankrupt and had good accounts. His Trustee in bankruptcy required £100,000 to release the Trustee's interest in the private residence. This office arranged a second charge loan to discharge the Trustee.

Case Study 8A father and son had developed a house and created 7 flats. The short term lender would not extend the facility and appointed Receivers. This office arranged a facility to discharge the Receivers.

Anne Gullon

INSOLVENCY (Cont)





ASSET BASED LENDING


Factoring A single debtor, start ups

Invoice Discounting High debtor concentration

Plant/Machinery Finance/Refinance, despite adverseproblems

Vehicle Finance Despite severe adverse

Fixtures/Fittings For the licence trade and hotels e.g. carpets,

flooring, televisions, Epos units.

Insolvency Issues Finance a Phoenix!

Case Studies

A client required to restructure his existing asset finance facilities as leverage against the equity of the assets to buy more machinery.

A start up restaurant required finance for fixtures and fittings.

A client raised finance on lodges to purchase more lodges.

ASSET BASED LENDING


Anne Gullon07557 525766 I 01302 812188



BRIDGING FINANCE


Security First charge, second charge or even third charge

Asset Private residence, semi-commercial,commercial properties; even land

Purpose Any purpose! Discharging a bank debt, paying off a

tax bill, paying off rent arrears, finishing off a property, Working Capital, funding a Phoenix etc, etc

Adverse Credit No problem

Proof of Income Rarely needed as 6 or 9 months interest is deducted

Term Up to 2 years

Case Studies

Client had bought a property at auction, exchanged contracts and paid over his 10% deposit. After several extensions to the contract, the client had 7 days to complete. His bank let him down with 3 working days to go before losing his deposit. This office arranged a facility which completed within 2 days!!

Client wanted to buy a commercial property and convert it into apartments. He had no available funds. This office arranged 100% funding by using the equity in his other properties as make-weight security.

A developer needed to discharge some preliminary fees before starting the project of knocking down his house to build out 12 apartments. This office arranged a second charge bridge for £50,000 to provide the necessary funds.

A client was able to buy an investment property off a Receiver for £1.7 million even though the break-up value

BRIDGING FINANCE


was £2.7 million. This office arranged a 12 month facility for the full £1.7 million.

Anne Gullon07557 525766 I 01302 812188



DEVELOPMENT FINANCE


Residential

Up to 70% of the gross development value Finishing off part completed sites Conversions of commercial to residential Converting storage above retail premises to flats New build of apartments!! Deed of Priority facilities Little experience is required, just a good builder is needed Use of makeweight security for 100% funding Interest roll up facilities All fees such as monitoring, legal and arrangement fees

added on in most instances

Mezzanine Finance

Additional funding of up to 20% of project costs can be arranged so that the client inputs only 10% of costs!!

Planning Gain Funding

100% funding is possible.

Commercial

If an exit is there, then so is the money!

Anne Gullon07557 5 25766 I 01302 812188

[email protected] I

mailto:%20%20%20%20%20%[email protected]

DEVELOPMENT FINANCE


www.refinanceuk.com Ainmoor Grange, Mickley Lane, Stretton, Derbyshire, DE55 6ES

DEVELOPMENT FINANCE (cont)


Case Studies

A developer wished to buy a commercial property in a hotspot of London. The senior debt of 70% of costs was arranged and mezzanine finance for 20% of costs was also arranged. The client input only 10% of project costs but retained 100% of the profit.

A client wished to buy an office block and apply for planning permission to convert into 180 apartments for student accommodation. Once planning permission was achieved the office block was sold on for a substantial profit. This office arranged 100% of the purchase and planning fees. The specialist lender retained 75% of the profit and the client was happy with his 25% for no input.

A client had built a retail warehouse and rented it out on a long term lease to a blue chip tenant. The tenant requested the client build out another 10 units around the U.K to be tenanted on the same lease terms. The client did not have the financial capacity to do this. However, this office introduced the client to a specialist finance house who 100% funded the build outs on a 50/50 joint venture basis.

A client was able to buy for £750,000 a new commercial property valued at £1 million. He found a tenant who would pay to fit out the property interior and also sign a 20 year lease. On this basis a specialist lender funded 100% of the £750,000 on a 50/50 partnership basis whereby the client's input was nil.

100% of build costs was arranged for the following clients:

A client converts his restaurant and car park into 24 apartments.

A client to build 4 houses on land adjaceant to her commercial investment property.

A client to buy land and build out 56 houses. A client to demolish his house and build out apartments. An 86 year old builder to build out 20 starter homes

on land on which he had obtained planning permission.

A client to build out 16 holiday cottages on land upon which planning permission had been

DEVELOPMENT FINANCE (cont)


obtained.

Anne Gullon07557 525766 I 01302 812188

[email protected] Iwww.refinanceuk.com




LICENCED TRADE

INCLUDING

HOTELS AND RESTAURANTS

During recent years, this sector has had to cope with many issues including the smoking ban, competition from the supermarkets and a lack of disposable income for the general public. Because of these problems the management needs the support of professionals with experience of the business sector. In turn, R & E Finance has put together a team of professionals covering the below issues for the hotel, restaurant and licenced trade.

This office is able to offer this sector a great deal of support. Such support includes:

Turnaround Management support Interest only mortgage facilities Second charge loans Unsecured loans Negotiations of better terms with breweries Valuation assessments Creation of a lease Advice on selling the business Asset purchase and refinance Funding for change of use Fund an outlet to pay off an insolvency action.

Anne Gullon


07557 525766 I 01302 812188 [email protected] I

www.refinanceuk.com Ainmoor Grange, Mickley Lane, Stretton, Derbyshire, DE55 6ES


COMMERCIAL AND SEMI- COMMERCIAL

07557 525766 II

01302 812188www.refinanceuk.comAinmoor Grange, Mickley Lane, Stretton, Derbyshire, DE55 6ES

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R & E Finance is Authorised and Regulated by the Financial Conduct Authority. Company Number302663 Members of the Turnaround Management Association and the National Association of Commercial Finance Brokers

Interest only facilities

90% of discounted purchase price

Borrow up to the age of 80

No proof of income

Adverse credit

Second charges

Short leases.

Case Studies

A married couple divorced. The commercial property they owned jointly had to be sold as part of the settlement to release the wife from the bank mortgage. The husband could not re-mortgage as he had bad credit. The problem was, the husband operated his transport business from the commercial premises. This office arranged a 100% facility for the eldest son to buy the property off his parents at a purchase price equating to the outstanding mortgage.

A property investor who rented out an Indian restaurant wanted to transfer ownership to her niece at a discounted purchase price equivalent to the outstanding mortgage. Such a facility was arranged by this office.

A wealthy businessman wished to sell his recruitment company. Unfortunately within the company was a large residential property portfolio which needed to be sold to allow the sale of the recruitment company to proceed. The client was willing to sell to his property manager but wished to retain an interest in the capital


COMMERCIAL AND SEMI-COMMERCIAL (Cont)

07557 525766 II


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growth of the portfolio. He was also willing to input 25% of the purchase price to help the new owners. This office structured a new company to purchase the portfolio whereby the vendor input 25% of the purchase price into shareholders funds for a 26% shareholding in the new company. This office also arranged the commercial mortgage of 75% of the purchase price.

A hotel where the business is vey seasonal has a competitive business mortgage of circa £1 million at BBR+1.5%. Unfortunately the client also had an expensive overdraft and business development loan with the same bank costing £3,000 per month. This office arranged a second charge facility to discharge the overdraft and business development loan and saved the clients £1,500 per month.

A small engineering company required £50,000 to create new tooling for their forthcoming production in 2016. As there was equity in the commercial property that the client owns, this office arranged a second charge loan to allow the client to progress.

Two independent clients wished to buy public houses but neither had any cash as an input. However, both clients had equity in other properties which the lender used to leverage up against to fund 100% of the purchase price.


07557 525766 II


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BUY TO LET MORTGAGES

Following recent comments by George Osborne the Chancellor, the buy to let land scope has changed with respect to stamp duty and income tax considerations. In turn, I attach illustrations relating to the new tax regime.

No maximum age at entry

Limited company ownership

Let to buy

Let to let

Bridge to let

Ex-pats

Case Studies

An architect age 73 with cash savings wanted to build his portfolio of buy to lets

A builder unable to sell a new build decided to rent it out and re- mortgage the property on a buy to let basis by way of a new company

An aged client wanted to rent out his large house and buy something smaller in which to live

An aged client needed to release capital on his current house which he wished to rent out and he himself rent a smaller


07557 525766 I [email protected]

I


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property

07885 202850 [email protected] I


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RESIDENTIAL MORTGAGES

Despite MMR it is still possible to:

Borrow up to the age of 85

Re-mortgageup to 85% despite adverse credit onunsecured borrowings.

Case Studies

A client who was discharged from bankruptcy only 3 years ago was able to borrow up to 80% at normal rates of interest.

A mature client who could prove income was able to borrow into retirement at 2.99% interest.

An ex-pat working for a U.K company but based overseas was able to buy a property in the U.K at normal rates of interest.

A professional footballer with high income but only a 3 year contract was able to have a normal mortgage at very competitive interest rates based upon his contract term.

EQUITY RELEASE



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Case Studies

This facility is becoming increasingly popular to be used for a variety of purposes which have included:

Discharge a Personal Guarantee to a bank.

Discharge an overdraft facility.

Purchase an investment property.

Pay for a grandchild to train as an airline pilot.

Discharge unsecured credit.

VALUABLE ITEMS



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Jewellery

Art

}

} Use such assets to borrow short

Wines etc } term for any purpose

Case Studies

Client had a cash-flow crisis and needed £70,000 quickly. This was arranged, using the security of artwork valued at £150,000.

presentation 2016 - whole

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