COMMERCIAL FINANCE
Langdon Capital assists businesses, property developers and property investors in securing debt and equity financing, ranging from £26,000 to £200 million, from the private capital markets.
With a panel of over 120 lenders and institutional investors, Langdon Capital helps clients access a comprehensive suite of financing solutions across real estate, corporate and commercial finance.
Real estate financing solutions span equity, bridging loans, development finance, commercial mortgages and buy-to-let (BTL) mortgages.
Corporate and commercial finance solutions include invoice finance, asset finance, asset-backed lending, merchant cash advances (MCA), secured and unsecured business loans, revolving credit facilities (RCFs), trade finance, working capital solutions, acquisition finance, structured finance and project finance.
Development finance is a specialised form of funding used in property development projects, which encompasses everything from small residential builds to large commercial real estate projects. It provides the capital required to purchase land, cover construction costs, and sometimes even manage costs post-completion until the property is sold or refinanced. This type of finance is typically short-term, ranging from 6 months to 3 years, designed to support the various stages of a development project.
Secure up to 90% of the equity requirement for a property development or renovation scheme from an equity partner, provided you co-invest at least 10% in hard equity to demonstrate alignment of economic interests.
Secure equity financing of up to £200 million for significant logistics and property construction projects in the UK, Germany, Poland and select other European countries.
A bridging loan is a short-term financing solution typically used in property investing to provide immediate cash flow for individuals or businesses until they secure permanent financing or sell an asset. This type of loan essentially "bridges" the gap between the immediate need for funds and the availability of long-term funding, helping cover short-term cash flow needs, such as covering a down payment to secure a new property or financing renovations or developments.
A buy-to-let (BTL) mortgage is a type of mortgage specifically designed for individuals or companies who want to purchase property as an investment to let, rather than to use for dwelling purposes. The borrower typically secures the loan with the expectation that the rental income generated from the property will cover mortgage repayments and eventually generate profit.
An investment commercial mortgage is a loan for properties that are purchased primarily for investment purposes, where the tenant is a business. The borrower (investor) does not intend to occupy the property; instead, they plan to lease it to third-party tenants to generate income. Investment commercial mortgages usually have stricter requirements and higher interest rates, as the property’s income potential plays a large role in assessing its risk and loan terms.
An owner-occupied commercial mortgage is a loan taken out by a business or individual to purchase or refinance commercial real estate in which the borrower’s business will occupy at least 51% of the property. Because the property serves as both the business’s operating location and collateral for the loan, lenders may offer more favorable terms, such as lower interest rates or deposit requirements, compared to purely investment commercial loans.
Invoice finance is a financial solution that allows businesses to borrow money against the value of their unpaid invoices. It helps businesses improve their cash flow by turning outstanding invoices into immediate working capital. Instead of waiting for clients to pay, which can sometimes take weeks or even months, a business can get access to most of the invoice amount right away.
There are two main types of invoice finance:
Factoring – In this arrangement, the business sells its unpaid invoices to a third-party financial institution (the "factor") at a discounted rate. The factor then takes on the responsibility of collecting payments from the clients. Once the invoices are paid, the factor remits the remaining amount, minus their fees.
Invoice Discounting – In this case, the business retains control over collecting payments from customers. It receives a loan based on the value of its outstanding invoices, typically 70–90% of the invoice amount upfront. Once the customers pay, the business repays the loan, plus interest and fees.
Asset finance is a financial solution that allows businesses to acquire, use, or leverage assets without needing to pay the full purchase price upfront. It involves using existing or new assets (such as machinery, equipment, or vehicles) as collateral for securing funding or financing to help with purchasing or leasing those assets. Essentially, it enables businesses to access the equipment or resources they need while spreading out the cost over a set period.
There are two main types of asset finance:
Leasing – A business can lease an asset for a defined period and make periodic payments (such as monthly instalments) for its use. At the end of the lease term, the business may have the option to purchase the asset, renew the lease, or return the item.
Hire Purchase – This is a form of instalment financing, where the business agrees to make regular payments over time until it owns the asset. Ownership transfers once the last payment is made.
A secured business loan is a type of financing in which a business borrows money from a lender by offering collateral — assets of value (such as property, equipment, or inventory) — to secure the loan. If the borrower fails to repay the loan according to the agreed terms, the lender can seize the collateral to recover the amount owed.
An unsecured business loan is a type of financing where a lender provides capital to a business without requiring any collateral. In other words, the business owner doesn't have to pledge assets, like property or equipment, as security for the loan. Instead, approval is often based on the business's creditworthiness, revenue, and financial stability.
Structured finance is a complex financial product that is typically used to manage risk and optimise the capital structure of an organization. It involves the pooling and repackaging of financial assets (such as loans, receivables, or mortgages) into securities that can be sold to investors. The goal of structured finance is to create tailored financing solutions by structuring debt or equity products in ways that meet the specific needs of both the borrowing entity and the investors.
Acquisition finance refers to the funding used by a company (or an individual) to acquire another business or a specific asset. This financing can be used in various forms, including loans, debentures, equity investments, or a combination of these, and is typically arranged through banks, private equity firms, or other financial institutions. The goal of acquisition finance is to provide the capital to complete a transaction, whether it's a merger, buyout, or purchase of assets.
Trade finance is a financial solution that enables businesses to purchase goods (i.e. inventory) from suppliers, both domestically and internationally, before receiving payment from customers from the sale of those goods. By leveraging trade finance, businesses gain the flexibility to pay suppliers upfront without worrying about cash flow constraints, allowing them to secure better terms, fulfill larger orders, or expand into new markets. This financing is typically granted in conjunction with an invoice finance facility. It further enhances cash flow by allowing businesses to repay the funding once invoices are settled.
Langdon Capital provides access to accredited lenders of the Growth Guarantee Scheme.
The Growth Guarantee Scheme is the successor to the Recovery Loan Scheme. It is designed to support access to finance for UK smaller businesses as they look to invest and grow. The Growth Guarantee Scheme launched with accredited lenders on 1 July 2024, with a wide range of products supported by different lenders, including term loans, overdrafts, asset finance, invoice finance and asset-based lending.
Source: https://www.british-business-bank.co.uk/finance-options/debt-finance/growth-guarantee-scheme
A Merchant Cash Advance (MCA) is a type of financing where a business receives a lump sum of capital in exchange for a percentage of its future credit card sales or daily bank deposits. Rather than being a loan with a fixed repayment schedule, an MCA is repaid through a portion of the business's daily credit card or debit card transactions, or through direct bank withdrawals. The repayment amount fluctuates based on the sales volume, so businesses pay more when sales are higher and less when sales are lower.
Key Features of Merchant Cash Advances:
Advance Amount – The business receives a lump sum of capital upfront.
Repayment Mechanism – Repayments are made through a percentage of daily credit card sales or bank deposits, typically deducted automatically.
Flexible Terms – Repayments are linked to sales, so if sales fluctuate, the repayment amount adjusts accordingly.
Quick Access to Funds – Unlike traditional loans, MCAs can be processed quickly, sometimes within a few days, making them ideal for businesses that need fast access to capital.
Luxury Asset Loan – Raise instant finance without impacting your credit rating. Your item will be kept at the lender's secure storage facility for the duration of the loan. Each loan agreement is tailored to fit the borrower's individual needs to help realise the asset's full potential.
Auction Sales Advance Loans – Receive funds ahead of auction sales. From artwork to antiques, secure loan proceeds of up to 50% of the item’s mid-auction estimate, up to 6 months ahead of the auction date. Wait for the optimum time to sell, while enjoying instant liquidity from the asset.
Asset Coverage – fine art, jewellery, watches, fine wine, fashion, antiques, books, vintage and luxury cars.
