Business - Shipping loans
We offer the following indicative ways of financing:
1) Through a partner American Interest Fund, which offers funding with the following characteristics:
Loan Term: One to three year’s interest only with no prepayment penalty.
Collateral: Typically, commercial real estate. Other fixed assets may be considered in some cases.
Loan-To-Value Ratio: Loan amounts can be up to 65% of the value of the collateral. If the loan is used
for construction or renovation, the loan can be funded in stages up to 60% of the
improved value.
Interest Rate: Depending upon collateral, rates start at 9%, interest only. In lieu of equity, a fee of
2-7% may be paid.
Minimum Loan Size: $ 3 million.
2) Through a cooperating investor finding office with many years of experience in Greece, as well as in the global market, which is characterized as a placement agent and is able to attract investors for any project, through a process of 4-6 months. The general features are as follows:
The placement agent is a full service global investment bank serving large and middle market companies throughout Europe, Africa, Latin America and East Asia.
The placement agent advises clients across all private market sectors (specialty focuses on agriculture, infrastructure, logistics, transportation, mining, manufacturing, oil & gas, consumer, healthcare and financials) seeking to raise $ 10m - 200m + in equity, convertible and / or debt capital. Equity offerings typically contemplate an exit through IPO or private sale in years 5 - 7 and focus on the following investment segments:
Venture: Management teams with no current operating entities or assets seek capital based on their proprietary market access and / or knowledge
Growth: Management teams of current operating entities and / or assets seek capital to grow their business
Recapitalization: Part and / or whole owners seek to sell their interests and / or shareholdings of current operating entities and / or assets
Distressed: Owners of current operating entities or assets facing excessive leverage raise equity capital to extinguish unmanageable debt.
Generally, pricing guidance is 8-12% for senior debt, 12 - 16% for subordinate debt and 17-22% for equity. Debt pays current interest. Equity makes no current payments and the return is back ended to 7 - 10 years after investment when investor sells to another investor or back to management. Terms generally include forms of initial control regardless of economic ownership that are relieved as management meets specified milestones.
A typical equity raise requires 4 - 6 months (the time begins to run after you contract with the Fund).
The placement agent charges both advisory fees (upfront fee) that range between $ 30,000 - 50,000 (paid in two installations) and success fees (1.2% for debt; 4.5% for equity) paid on funding.
3) Financing of business plans by large European banks. The application for financing is made after the bank becomes aware of the transactional behavior of each customer. The acquaintance of the customer with the bank is done through the creation of a professional bank account and its movements.
4) Shipping finance through a European bank.
Bank’s standard conditions for ship financing are as follows:
Assets for finance: transport vessels not older than 25 years (20 years for tankers) by the end of loan repayment term
Amount: from USD 2 mln
Proportion of loan: up to 70%
Interest rate: from 6-9% p.a.
Currency: USD / EUR
Term: up to 5 years (repayment schedule of up to 10 years) Bank commission: 1% Main security: Vessels, Share pledges, corporate guarantees, personal guarantees of the beneficiaries Main additional conditions: 100% of turnover through accounts opened in the Bank Borrower is responsible to cover all legal fees (abt USD 30.000 for one vessel + abt. USD 5.000 each additional vessel) Loan agreements in accordance with English Law.
In the above options, when the client has 30% of the same participation, the process of finding financing is easier.
5) Financing through Letters of Guarantee for amounts over 100 million. We often refer to it as BG Mechanism, since it includes the issuance and liquidation of the letter of guarantee.
Our office pre-collects € 10,000 as a commitment fee, which are refundable until the customer enters into an agreement with the bank (or the Fund). After signing the contracts, this money is not refunded and is converted into consulting services. With the disbursement of the loan, our office will receive a 2% success fee.
6) By founding an English company, you are given the opportunity to apply for conditional financing in English banks, as a start up company.
Depending on your needs, we can suggest the option that suits you best. In addition, having developed a complete network of partners throughout Europe we can find personalized solutions for your company.
Mortgaged Housing loans in England for:
- Purchase of real estate in the United Kingdom
- Refinancing of own investment property in the United Kingdom,
-Other reasons that will be discussed in advance with the bank.
The property to be acquired will be used as collateral as well as any other property owned by the customer.
The basic terms of funding are:
Type of credit: Mortgage loan
Borrower: Individual, not resident in the United Kingdom. Under certain conditions, the borrower can be a legal entity. They have not set the conditions, each request will be considered separately.
Loan currency: British Pound, Euro
Loan amount: from 700,000 Euros or more (or equivalent in another currency)
Maximum loan amount of 14,000,000 euros
Interest rate: from 6% and above & determined per case
Loan Duration: For loans in pounds pounds up to 3 years while for loans in Euros or dollars up to 5 years. The monthly installment is calculated with a loan duration of 15 years to be lower. Also, when the installment payments are made normally and without delays, the repayment period can be extended up to 20 years.
Guarantee: Real estate in the UK but the bank prefers in major cities of the country.
LTV min 60-70%
Own participation at least 30% of the purchase value. The source of the funds should be able to be adequately justified by supporting documents.
The property to be purchased should be used as a residence, not necessarily the buyer. The buyer can rent it, as long as it is used as a residence.
The bank initially needs a detailed description of the property (appraisal, photos, etc.). The appraisal must have been done by a large and recognized office
appraisers. The bank suggests specific offices (Knight Frank, Colliers, Savills, Clutton etc) but it can be used more if approved by the bank.
The property to be mortgaged must be insured and the relevant supporting documents submitted to the bank.
The commission of the bank to process the request and formalize the documents for the issuance of the loan is 2% of the loan amount. Their commission for early repayment of the loan is 2% of the amount repaid early.
The advisory fee of our office is 1,000 euros and the success fee is 1% of the loan amount.
Contact us for further information.