Long term assets such as equipment, physical plant, property, and buildings are amongst a company’s most tangible and enduring assets and their value can readily support financing. Construction Lenders' criteria, deal size preference and loan pricing can vary widely depending on the construction project, stage,  or sector. Construction Lenders apply their own unique approach to evaluating equipment,  construction asset class, and real estate loans.

Structured Business Financing tailors a financing solution to meet your Construction Project requirements. We assist in defining the scope, validating the cost structure and project feasibility economics, and packaging the financing proposal on its own merits and as part of the Company’s capital base.

Construction Financing - Common challenges:

  • High project cost
  • Liquidity, in the event of cost overruns
  • Not enough equity
  • Inadequate building value engineering
  • Project costs not validated
  • Environmental, soil, drainage conditions 
  • Planning conditions
  • Borrower’s construction experience
  • Lease up period and certainty
  • Insufficiently detailed construction budget reports
  • Furniture and equipment cost not budgeted
  • Quality and certainty of occupants (tenants)
  • Building type, specialized use
  • Industry
  • Location
  • Construction manager and/or builder
  • Construction contract and control

Solution

Construction financing is highly specialized. While projects can appear to be readily quantified and valued, the devil is in the details and financial engineering at project inception and at critical design milestones along the way is essential to gain alignment with financing and budget and avoid costly project delays. It takes a thorough understanding of construction, cost control, building architecture and engineering, project management, and financing to ensure the success of a construction project. 

A detailed understanding of the land, construction project and completed valuation is necessary along with how the business/property cash flow can support financing repayment over a multi-year timeframe. Because of the long-term nature of property and buildings, the financing case usually needs to address both the property value and the borrower’s cash flow. Some Lenders will place more emphasis on property asset value and security over repayment ability depending on the stage of the project. 

We identify the financing options to the best-case financing scenario, expected pricing, security requirements, and most suitable lender(s). Developing a lending case, we draw on our previous construction experience within this financing class and drill down into the details to ensure alignment with each prospective lending solution.

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How We Work and How We Get Paid:

Results Based Success

Structured Business Financing delivers results. We work quickly. We do not charge by the hour. You pay us based on our success.

You engage us, we do a feasibility assessment and give you a go/no opinion. If we do not deliver funding - - we don’t get paid.

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