Second Charge Facility
5-year facility
Second Charge Hotel Fit-Out Facility
Hotel Operator
Facility Size
5-year facility
Transaction Type
Second Charge Facility
Client Type
Hotel Operator
Sector
Business Finance
Structure
We structured a 5-year second charge facility that delivered the flexibility the client needed despite...
Outcome
The facility was approved at just over 15% with a 0.5% arrangement fee and arranged...
01
Client Situation
A hotel operator, expanding as part of a project launched in 2018, needed additional funding to complete building works. They wanted a second charge structure that avoided a full re-valuation and did not place a charge over their personal home.
02
The Challenge
The case carried real complexity — an adverse credit history and an insolvent balance sheet — and the client needed flexibility and speed without disturbing the existing first charge.
03
Lender Considerations
A second charge behind an existing facility requires a lender willing to take a subordinated position, to look past historic credit issues to the underlying project and its completion, and to price for the risk while keeping the terms workable.
04
Structure Used
We structured a 5-year second charge facility that delivered the flexibility the client needed despite the adverse credit and balance-sheet position — with no re-valuation and no charge over personal property.
05
Outcome
The facility was approved at just over 15% with a 0.5% arrangement fee and arranged within four weeks, allowing the building works to be completed.
06
Key Lessons
A second charge can unlock funding without disturbing an existing first-charge facility.
Adverse credit and a difficult balance sheet do not automatically rule out sensible funding.
The right specialist lender prices for risk while keeping the structure workable.
Client details have been anonymised. Figures and rates describe a completed transaction at the time and are not indicative of current terms. All finance is subject to status, lender criteria and individual circumstances. Past outcomes do not guarantee future results.
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If your finance scenario involves similar complexity, speak to CC Finance about how we can help.