Find out about our flexible stabilisation loans

We are well known in the short-term lending space for supporting businesses in need of a stabilisation period. You may have heard these referred to as “projection-led” loans.

In the majority of cases the borrower is unable to obtain a mainstream commercial mortgage due to a lack of trading history or sustained profitability.

We focus on the strength of the borrower, their business plan, and forecasts in order to get comfortable with debt servicing.

Stabilisation loans can address a range of borrower and property issues

Common lending scenarios where a stabilisation loan can provide an effective solution include:

• New start businesses especially in the leisure and care sectors
• Refinancing expired commercial mortgage facilities
• Turnarounds
• Asset management opportunities

Loans to address a short WAULT problem

Commercial landlords can also benefit from our forward-looking approach.

Stabilisation loans are useful for investment properties with a low weighted average unexpired lease term (WAULT).

We are able to assist landlords buying underperforming portfolios or help with asset management strategies, even where tenants are occupying on short-term licences.

Once the asset is stabilised and the WAULT extended, mainstream funding becomes available.

Our attitude to this type of lending

In each case, our experienced team will listen to a borrower’s specific property-related challenges and then work collaboratively to find a solution.

We will primarily focus on the financial strength of the borrower, and their own business experience when underwriting these types of deals.

In common with many lenders, we value a healthy deposit from the borrower as evidence they have a decent stake in the transaction.

We will then review their projected trading or asset management strategy to understand how they plan to stabilise the asset and deliver a successful exit.

We pride ourselves on working closely with our professional broker network, listening to their clients’ requirements, and delivering bespoke solutions.

Get in touch 

If you’d like to find out more about our stabilisation loans and how we can help you and your clients, give us a call.