Special investment situations

Print this page Email a link to this page

There are times in business when finance is needed, but funding is unavailable from more traditional sources.

Circumstances such as personal debt, poor credit history and other capital constraints like low revenue, can stop your business from securing a loan via the traditional routes. If you find yourself in a situation like this it demands a different approach to secure the funding your company needs.

Muckle LLP can proactively connect you to special situation investors. They will take a view on how likely it is that their investment is to be repaid, with the appropriate levels of return to support the risk they are taking. Traditional credit type processes do not exist here.

Recently, Muckle was involved in the case of an individual with substantial land assets, but a lot of mortgage debt and in an Individual Voluntary Arrangement (IVA) with creditors.

Income generated was being used to pay interest on bank borrowings and pay contributions to an IVA supervisor. However, the individual was contemplating developing land into housing and was in discussions with a property developer.

On one hand, there was an opportunity for the land to be purchased for a significant increase in value. The problem, however, came down to cash flow.

Having fallen into arrears with the IVA meant it wasn’t possible to borrow traditional money. Also, there was a threat of bankruptcy which meant everything could be lost – including value from this development site.

Muckle introduced the individual to a special situation investor who provided funds to meet the short-term cash flow problems, but with a view to a long-term opportunity to share the value in the site later down the line.

We have access to a network of investors with the capital to help a business or individual secure funding in ways they may not have thought about. So the first step is to come and talk to us.

Andrew Cawkwell can be contacted on 0191 211 7957 or email [email protected].