With portfolio equity sometimes difficult to access and traditional finance loans more time consuming, this new product aims to enable developers to move quickly when faced with profitable prospects.
The 12-month facility allows customers to dip in and out throughout the year without the usual individual deal fees that would normally need to be paid.
Just Cashflow is offering almost immediate access to facilities between £50,000 and £1m, with no interest to pay until the facility is drawn down.
It will provide up to 80% LTV based on the most recent valuation/purchase price of the existing property/portfolio.
“We’ve taken time to put ourselves in property investors’ and developers’ shoes and its clear they need a finance facility in place before opportunities present themselves,” said Martine Catton, chief commercial officer at Just Cashflow.
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“Bidding at auction would be a prime example,” she added.
“Equity in a portfolio can be released and, where we are able, we can take an equitable charge.
“This removes time delays in taking security and the obstacle of first-charge holders’ unwillingness to give consent.
“We know the timing is good because all of our broker contacts confirm that there is a pent-up demand for property deals.
“I believe this is driven by Covid and various lockdowns causing the property market to cease up, businesses with no option but to sell up, and a desire to take advantage of the recent stamp duty holiday extension.”
The portfolio builder product includes:
- no early redemption penalties when funds are paid back in
- no cost in between projects when funds are paid back
- multiple drawdowns throughout the term, with no further arrangement, valuation or legal fees
- daily interest rates from 0.041%, which is equivalent to 1.25% per month.
“Putting yourself in the end customers’ shoes really enables you to deliver the timely and flexible finance they need,” Martine stated.