Last Mile Finance
What is it?
- It is a type of financing used to complete projects that have been discontinued or stalled due to the lack of funds.
- This type of financing is popular among many real estate developers and construction companies whose projects are in the last stage and need different financing structures.
What to expect?
- Real estate developers usually rely on last mile financing to ensure that their projects are successfully completed because a bulk of the finances are used in the early stage.
- Last mile financing is free of hurdles usually associated with the initial stages of a project.
- It requires little investment before churning out the balance receivables from the project.
- The government is usually supportive of last mile financing and may provide contribution.
- There are instances where there is potential pressure on delivering the projects as soon as possible, so in many cases no interest and principal payments till they are paid out
.
Who should consider
- Companies who are looking for short-term financing to be able to finish their development projects.
- Companies who have history of positive income and cash flows as well as leverage ratios that are below industry averages.
- Companies that have free and unencumbered collateral, typically real estate, that can be pledged to the lender.
How Can Bayfront Help
Strategy Review
Detailed analysis of the Client and advise on value-adding corporate strategies.
Structuring
Detailed analysis of the Client’s capital structure and advise on the optimal proportion of equity and debt.
Deal Execution Management
Assisting in execution of deal processes, most commonly in the form of capital raising.
Information Memorandum
For presenting to different target audience such as lenders, new sales relationships, new client relationships.
Governance Review
To determine the specific governance needs of a company and assist in areas which would minimize risks and help achieve business goals.
