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We have been providing structured wholesale finance solutions to other lenders, since 2020. Our main focus is on providing block discounting facilities to SME lenders and structured facilities for bridging finance lenders though we can consider other types of secured lenders.
Downing Wholesale Finance
Within wholesale finance we focus on lending to bridging lenders and will consider other development lenders who provide access to different segments of the market. We can also consider lending to other secured lenders.
Wholesale lending to property lenders provides attractive risk-adjusted returns with low look through LTVs against residential and commercial assets.
A variety of structures can be put in place, with different levels of security and protection. The two typical ones are called forward flow and loan-on-loan.
Provide funding for up to 100% of another lender’s loans or an agreement to buy a set of loans, based on pre-agreed eligibility criteria. If the lender lends outside of the agreed criteria or in other pre-specified scenarios, they would be obliged to buy back the loans.
Provide a proportion of the lender’s advance to a borrower, typically at an advance rate of 70%-90%. While the lender injects 10%-30%, which remains subordinated to the provider of wholesale finance.
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What we typically look for in a lender:
Experienced and stable management teams: minimum 5-year trading history
Net worth: minimum £1m
Existing loan book: demonstrably performing portfolios
Strong governance: compliance with FCA regulation where relevant
Find out more about the Wholesale Finance team and its expertise
Downing LLP does not provide advice or make personal recommendations and investors are strongly urged to seek independent advice before investing. Investments offered on this website carry a higher risk than many other types of investment and prospective investors should be aware that capital is at risk and the value of their investment may go down as well as up. Any investment should only be made on the basis of the relevant product literature and your attention is drawn to the risk, fees and taxation factors contained therein. Tax treatment depends on individual circumstances of each investor and may be subject to change in the future. Past performance is not a reliable indicator of future performance. Downing LLP is authorised and regulated by the Financial Conduct Authority (Firm Reference Number 545025). Registered in England No. OC341575. Registered Office: Downing, 10 Lower Thames Street, London, EC3R 6AF.
VAT Number: 112 940 149
