How Smart Structuring Delivered £225K and Significant Savings

How we structured a smart facility to fund essential property improvements while protecting cashflow and minimising costs.

The Challenge

Our client, also an advisor within the Cornerstone Network, approached us with a familiar but complex situation. He needed funding for major improvement works across two commercial investment properties. The costs would later be recovered through tenant service charge payments spread over three quarters.

Although tenant reimbursements were planned, he needed full financial certainty. His priority was securing all capital upfront to protect against any potential delays or shortfalls in tenant payments that could disrupt the project timeline.

Our Approach

The solution needed to deliver complete capital security without incurring unnecessary interest on unused funds.
Knowing the works would be completed in stages and tenant payments would arrive quarterly, we assessed both traditional term loans and more flexible bridging facilities. Our goal was to design a structure that mirrored the project’s cashflow profile.

The Outcome

We arranged a £225,000 Hunting Pot facility, secured against one of the client’s commercial properties. This structure offered three key advantages:

1. Complete Financial Protection: The facility covered 100% of the improvement costs, ensuring no funding gaps and giving our client full confidence to proceed.
2. Controlled Drawdowns: Capital could be drawn in three tranches, each with just one week’s notice. This ensured funds were released precisely when needed for each project phase.
3. Cost-Efficiency: Interest was charged only on drawn funds, not the total facility amount. This reduced financing costs significantly while keeping the entire facility available for use.