Factoring companies for Property finance arrangement fees
Discussion
All,
I’d be grateful for some advice. I have been approached by an ex hedge fund chap who has both a pipeline of property developers wanting development finance and a set of financiers available to fund these, but doesn’t have the time to structure these deals. I am starting the due diligence process at the moment in lieu of possibly joining the startup..
We would charge a back end fee to the developer for structuring/providing the finance. This would get paid upon the property being sold in say 12-24 mths. The problem is it would mean we would have no income for say the first 18 mths of operation but some high costs. Thus my question is, are there any factoring companies that people know of that would be prepared to ‘buy’ the first 2-3 deal’s income/fee in advance (eg at month 1-2)?
I’d be grateful for some advice. I have been approached by an ex hedge fund chap who has both a pipeline of property developers wanting development finance and a set of financiers available to fund these, but doesn’t have the time to structure these deals. I am starting the due diligence process at the moment in lieu of possibly joining the startup..
We would charge a back end fee to the developer for structuring/providing the finance. This would get paid upon the property being sold in say 12-24 mths. The problem is it would mean we would have no income for say the first 18 mths of operation but some high costs. Thus my question is, are there any factoring companies that people know of that would be prepared to ‘buy’ the first 2-3 deal’s income/fee in advance (eg at month 1-2)?
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