‘A rising tide lifts all boats’ - How Finanze® is sharing the wealth with exclusive one time fee Hunter Licences for multiple investments.
Investors can save thousands with Finanze®’s refreshingly modern Revolving Credit Facility - as legal, admin and arrangement fees are only required ONCE for multiple purchases.
Bespoke finance and bridging solutions provider Finanze® has produced yet another innovative product for property buyers in 2022 - taking an underutilised investment facility and bringing it into the modern age by cutting out unnecessary fees.
Finanze®’s new ‘Revolving Credit Facility’ - better known as a ‘Hunter Licence’ - offers investors a flexible fund secured against a property portfolio… except with one crucial difference.
All fees involved with the Finanze® Hunter Licence are applicable only on a ONE TIME basis. This gives investors access to a facility which they can drawdown (0.99% per month on any amount) and repay on demand as much as required.
It doesn’t matter how many properties or assets are being bought. Once the costs for the first property have been settled, the facility remains in place for future purchases.
Costs up front include a one-time arrangement fee (2%), a one-time admin fee (£500), and one-time legal/valuation fees. And that’s it. There will be a small transaction fee of circa £500 for each drawdown to cover paperwork and remittance fees - but investors are in control of how frequently they choose to drawdown.
Hunter Licences - despite posing great benefits for property buyers - aren’t necessarily widely utilised or even well advertised in the modern era, with many existing products complicated by mitigations, clauses and various other forms of red tape that might exclude or put off certain parties.
But Finanze® is aiming to showcase a Hunter Licence’s potential as a savvy investment tool by removing the associated costs and adding an element of innovation that appeals to today’s investor market.
Finanze® founder Alastair Hoyne approached long-time frequent lending collaborator Elysium Bridging to develop this new, exclusive Hunter Licence facility where the client can put a charge against an unencumbered asset that they own up to 70% LTV, with a minimum loan size of just £100,000.
Hoyne explains: “Every time you take out a bridging loan - as you would if you bought two or three properties in a year - you would be paying interest rates, valuation costs, legal fees of the lender for arranging the facility and an arrangement fee of 2%."
“But with our product, you’re only paying once. The Finanze® Hunter Licence can be used for future purchases, so you already have a facility to buy the property."
“This means you’re saving lender legal costs, admin fees, arrangement fees and even valuation fees if needed - so if you did 10 transactions a year you’re saving at least 20% of the values of purchased properties you would have otherwise paid in lender and broker fees.”
Any investor can take advantage of the Finanze® Hunter Licence, but the facility offers particular benefits to active investors making several transactions in a year via property auctions.
After the gavel comes down at an auction, property buyers often have just 28 days to complete, and many may have to arrange last-minute bridging loans which are invariably expensive. In these instances, profit margins are eroded by lack of foresight, but with a Finanze® Hunter Licence a facility is already in place to provide the necessary funds.
The type of Hunter Licence on offer from Finanze® is a rarity, and Hoyne believes this is partly due to the fact this product takes fees away from brokers.
“There’s a selfish rationale as to why more brokers don’t promote this
product,” the Finanze® founder explains.
“In theory, this kind of agreement shoots brokers in the foot. We get paid to arrange the facility - but only once. Next time the client buys, they don’t need to pay again."
“Often, the attitude within the industry is this notion of: ‘Why would I do that when I could simply charge the client again?’"
“But I think this is shortsighted. If you treat your clients well, they’ll return to you for repeat business. By providing a tool that educates clients and saves them money, they will hopefully be more likely to use Finanze® again for refinancing in the future."
There’s a lovely analogy that explains the benefits one gets from helping their customers which is often attributed to John F. Kennedy: - ‘A rising tide lifts all boats’.
“If I can help my clients become more profitable, they can afford to do more
projects - with us helping to finance them and then we will naturally profit as
Learn more about the Finanze® Hunter Licence online.
For more information on how Finanze® is offering fresh, innovative and cost-effective solutions for clients, visit Finanze.co.uk.
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Finanze® specialises in bespoke solutions for bridging, buy-to-let, development finance, residential and commercial mortgages.
Alastair Hoyne launched the company in 2021 - drawing on his background in investment banking, hedge fund management and strategic consultancy directorship to provide an institutional grade service to sophisticated private property investors and corporations.
Since receiving FCA approval at the end of September 2021, Hoyne has issued terms on £202m worth of property, representing £126m in gross loan value and of which 50% are in process.
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