As a property investor, having access to flexible and efficient financing is key to scaling your portfolio and seizing opportunities quickly. While traditional property loans, such as Mortgages or Bridge Loans, have their place, a Revolving Credit Facility (RCF) offers several advantages that make it a powerful tool.
We offer a personalised, one-on-one service by providing you with a personal Account Manager. This experienced professional will handle every aspect of your application, as well as answer any questions you may have along the way. We will work closely with you to understand your business needs and help you select the perfect loan to suit your specific requirements. We are committed to providing an exceptional, efficient service and empowering SMEs to achieve their business goals. All it takes is one simple, straightforward application, and we’ll handle the rest.
Advantage: You can use the funds for any business-related purpose.
Traditional property loans often come with strict guidelines on how the funds can be used. For example, a mortgage is typically restricted to purchasing a specific property, and a construction loan might only cover building expenses. These restrictions can limit your ability to react to new opportunities or cover unexpected costs.
With an RCF, the use of funds is completely at your discretion, including:
Why This Matters:
Flexibility is key when managing a property portfolio. You never know when you’ll need immediate funds, whether it’s for an urgent property purchase or an unexpected repair. An RCF allows you to act quickly and efficiently without the need for additional loan applications.
Advantage: Continuous credit line availability without the need to reapply for a loan.
Traditional property loans, such as mortgages or bridge loans, provide you with a lump sum of money upfront, which must be repaid over a fixed term. Once the loan is repaid, it’s finished—requiring you to apply for another loan if additional funds are needed. This can be time-consuming, costly and create financial uncertainty.
With an RCF, once your credit line is approved, you have continuous access to capital for the renewable agreed term. You can borrow and repay as needed, up to your approved limit. As you repay what you borrow, your available credit replenishes, allowing you to use the funds again when necessary.
Why This Matters:
An RCF gives you ongoing access to funds for any future property investments or emergencies, without the need to apply for new loans each time. This provides financial agility, allowing you to act quickly on new opportunities or manage unexpected expenses.
Advantage: Lower cost of borrowing compared to traditional loans.
With traditional loans, such as mortgages or bridge loans, you typically pay interest on the full loan amount from the outset, even if you haven’t used the full loan value. This can result in higher interest payments over the life of the loan, especially if you’re not requiring the entire sum at once.
An RCF, on the other hand, allows you to borrow up to your approved credit limit but only pay interest on the funds you actually use. And if the balance is zero, there is no cost. This reduces the overall cost of borrowing, especially if your property investment needs fluctuate.
Why This Matters:
As a property investor, cash flow is critical. By only paying interest on the borrowed amount, you avoid unnecessary costs, keeping more funds available for your properties, renovations, or new investments.
Advantage: Gain a Competitive Edge in a Fast-Paced Property Market
Traditional mortgage or bridge loans often come with long application processes, extensive paperwork, property appraisals, waiting times, and uncertainty around approval. This can be a major obstacle, especially when you need funding quickly for a time-sensitive property deal.
With an RCF, you enjoy a streamlined, one-time set-up, allowing for multiple drawdowns throughout the term—without the ongoing hassle of arrangement, valuation, or legal fees.
Why It Matters:
In today’s fast-paced property markets, opportunities can disappear in an instant. An RCF transforms you into a “cash buyer,” providing the flexibility to act quickly and gain a competitive edge in negotiations. This agility could be the difference between securing a profitable property investment and missing out.
An RCF offers property investors unmatched flexibility, easy access to capital, and cost savings compared to traditional property loans. With ongoing access to funds, interest paid only on what you borrow, and the ability to use funds for any expense, it’s a powerful tool for managing your portfolio, responding to market opportunities, and maintaining healthy cash flow.
If you’re a property investor looking to streamline your financing, minimize risk, and maximize your ability to act quickly, a Revolving Credit Facility could be the ideal solution for your needs.
© 2023 | Flexicap – Developed by NowTheBrand