Refinance & cash raise of a Commercial Investment property with no Personal Guarantees or Debenture

Our client owned a strong, income‑producing commercial property but was tied into a facility that no longer reflected the asset’s true value. Their existing lender required personal guarantees, held a full company debenture, and had priced the loan at a level that was restricting cashflow. The client wanted a more flexible structure, improved pricing, and the removal of all personal exposure.

Objectives

• Remove personal guarantees
• Avoid any company debenture
• Reduce the cost of borrowing
• Increase the loan amount and raise funds for further purchases

Key Challenges

• Many lenders insist on PGs and debentures as standard, especially when increasing the loan size.
• Achieving a higher loan while simultaneously reducing security requirements is uncommon in the current market.
• Securing a cheaper rate at the same time required a lender with a strong appetite for the asset class.

Our Approach

• Identified lenders who take a property‑led underwriting approach, focusing on asset quality, tenant covenant strength, and rental stability.
• Prepared a concise, evidence‑based credit presentation demonstrating the asset’s performance and the rationale for a higher loan without additional security.

Outcome

• No personal guarantees required
• No debenture over the trading company
• New rate secured below the client’s existing lender, improving monthly cashflow
• Higher loan amount achieved, supported by an increased valuation
• Smooth, fully managed process with minimal client involvement
• All delivered at a 65% loan‑to‑value ratio