Case Study: Bridging Finance of €1.5m provided in the West of Ireland

In the dynamic landscape of short-term lending, responding to unique challenges is a testament to a company's success. This case study delves into how at Onate, showed flexibility and expertise when approached by an introducer with a time-sensitive funding requirement in early 2022.

The promoter, the current hotel operator was looking to acquire the hotel and 12 apartments in the West of Ireland. under the terms of his lease, the client had an option to purchase the entire property for €1.5 million. However, with a deadline tied to the option agreement and the inherent complexity of the transaction, the client needed a financial partner capable of swift action and a strong underwriting team who had experience with dealing with complex transactions

Recognising the urgency and complexity of the situation, Onate wasted no time and promptly issued terms. Upon payment of the due diligence fee, an all-party call was arranged. Leveraging the expertise of a solicitor on the Onate panel that had lots of experience with similar transactions relating to acquisitions , company purchases, and option agreements. Onate ensured that crucial tasks were frontloaded to eliminate potential delays.

The underwriting team at Onate worked closely with the promoters to expedite the collection and approval of all non-legal documents. A €1.475 million loan was successfully drawn down, reflecting a 62% Loan-to-Value (LTV) ratio. To further support the borrower's financial flexibility, a structured repayment plan was established, requiring quarterly capital repayments throughout the loan's duration. This strategic move aimed to facilitate an easier refinancing process with a pillar bank

The loan performed to terms, and the borrower demonstrated financial resilience by repaying the entire loan within the initial 12-month period.

This case study exemplifies how a combination of expertise, quick decision-making, and client-focused solutions can lead to positive outcomes in the dynamic landscape of short-term lending.