What information do I need to provide in order to get a stretched senior debt?
Stretched senior loans are generally offered to experienced developers or businesses, on a first charge basis, and where detailed planning consent is required (in the case of a property transaction). These loans are monitored and preferred for development schemes involving multiple units. Most lenders will require personal guarantees – but not all. In terms of the information required to apply for your loan, this will include:
- Information on directors and key stakeholders (demonstrating experience and expertise)
- Details of the project, including planning consent
- A financial appraisal of the project, including cash flow and detailed build costs
- Details of the delivery team (including contractors) and the procurement method
- Benchmark sale data to support GDV estimates.
Hank Zarihs Associates can help you to put together the information that lenders need to see, in a way that most rapidly facilitates your loan approval.
Mezzanine debt vs senior debt
What about mezzanine debt vs senior debt? The former is a hybrid capital arrangement that combines an investment in the applicant company and a loan. A senior debt is simply a loan facility. There are other differences too. For example, stretch loans are asset-backed and mezzanine loans are cash-flow based. Stretch loans are also first lien in nature, whereas mezzanine debt takes second place in the priority stakes for repayment.
Stretch loan vs bridge loan
Bridge loans are short-term, rapid loans that provide instant cash, giving the applicant time to put in place a repayment method (such as the sale of an underlying asset, or arrangement of a long-term standard mortgage.) They are collateral backed, extended for 6 months to 2 years (typically) and have relatively high-interest rates, charged on a monthly basis. Stretch loans are asset-backed, affordable, long-term and flexible financing arrangements where the lender has first lien on repayments.
Speak to our brokers today!
Mezzanine debt vs senior debt? Stretch senior vs unitranche? Stretch loan vs bridge loan? The specialist development finance and investment market can be complex, with a variety of structured financial products that offer different features and benefits for different situations.
Whether you are an experienced developer or a more junior investor, our team are here to ensure you find the best possible finance for your needs. Contact us in the first instance from Monday to Sunday, 9 am till 9 pm, on +44 (0) 20 3889 4403. Alternatively, please make a callback request via our website and we will contact you at a time that best meets your needs.