Services Offered
Radiance Capital offers unique value propositions by integrating our corporate advisory with our principal investment platforms. Our integrated approach aligns with our client's objectives and enhances their shareholders/stakeholders’ value.
Mezzanine Finance
Mezzanine loans help property developers to take on a junior facility behind a traditional development lender. This allows the developer to reduce the amount of equity needed from the developer’s pocket for a development
For example, where banks typically lend up to 65-75% of costs, our mezzanine loans can cover up to 90% of total project costs.
This higher leverage lending is perfect for property developers as you won't need to provide such a large percentage of funding. This not only helps with cash flow but also provides the opportunity to build more than one development project at a time
Mezzanine Loan lending Criteria
Developer: Experience and proven track record of previous development, Willing to provide a personal guarantee, Net assets (only completed projects) to exceed at least 3x of mezzanine loan required.
Loan size: From £100k to £2m with a minimum term of 6 months to 3 years
Covenant: Loan to GDV up to 75% and a minimum margin of 20% on costs after finance costs
Stretch Senior Finance
Stretch senior debt is an alternative to "structured" funding packages like Senior Debt and Mezzanine Finance. With a stretched senior loan, you only have to source funding from one lender.
Radiance Capital provides development finance at higher leverage than traditional high street banks. For example, where banks typically lend up to 70% of costs, our senior stretch loans can cover up to 90% of total project costs. This higher leverage lending is perfect for property developers as it means you won't need to provide such large equity funding. This not only helps with cash flow but also provides the opportunity to build more than one development project at a time.
Stretch Senior finance lending Criteria:
Developer must have Experience and a proven track record of previous development. The developer is willing to provide a personal guarantee. Net assets (only completed projects) to exceed at least 3x of the loan required.
Loan size: From £300k to £4m with a minimum term of 6 months to 3 years.
Covenant: Loan to GDV up to 75% and a minimum margin of 20% on costs after finance costs.
Bridging Loans
Radiance capital is a specialist bridging loan lender and is ideally placed to provide a bridge to acquire a site or develop a site or exit a development on completion.
A bridging loan for property development can help to ‘bridge the gap’ in funding a project. Our bridging finance options are designed for small to medium property developers building for residential purposes
Bridging loans allow developers to move quickly and acquire sites without having to go through a traditional development finance provider which can be time-consuming. Bridging loans can also allow developers to implement value add strategies before committing to a full development finance package.
Bridging loan lending Criteria:
Developer must have Experience and a proven track record of previous development. The developer is willing to provide a personal guarantee. Net assets (only completed projects) to exceed at least 3x of the loan required
Loan size: From £100k to £2m with a minimum term of 6 months to 2 years
Covenant: Loan to GDV up to 75% and a minimum margin of 20% on costs after finance costs
Equity funding
Equity funding is the most difficult part and critical part of a capital stack for a project/development. There are several ways to structure a capital stack and our experts can help structure a capital stack for your project and help with equity funding.
