Some of our common questions
Answers to the most frequently asked questions about our Commercial Property products and services.
What assets do you lend on?
We lend on commercial properties where the rent roll is sufficient to support the financing – this includes offices, retail units, light industrial units, logistics units, multi-family residential and most other types of commercial investment property. Our bias is for property located in the city or commuter environs of Dublin, Cork, Limerick, or Galway, although we selectively consider well located provincial property with good cashflows.
We selectively consider bridging, development and other specialised proposals.
We don’t lend on:
- Loans of <€1m
- Assets outside the Republic of Ireland
- Nursing homes, agricultural land, farms or quarries
What size of loans do you offer?
€1m – €15m.
Are your decisions locally made?
Yes, all our decisions are made by our executive team. We are lending our own funds and are not required to refer to our shareholders or lenders for credit approvals.
What are your main lending parameters?
We focus on repayment capacity, which generally requires that net rent after tax is 1.10 x debt service obligations. We do not cash sweep this excess, so any surplus after debt service is typically retained by the borrower to reinvest in the property or take as drawings.
What does a loan cost?
Our Interest Rate is typically variable, and linked to EURIBOR, with a floor amount of 0.25%. The following shows indicative capital plus interest monthly repayments per €1m of borrowing, plus expected principal balance outstanding at the end of year 5:
|25 year repayment profile*||30 year repayment profile*|
|Interest Rate||Monthly repayment||Balance at year 5||Monthly repayment||Balance at year 5|
We operate drawdown fees (sometimes called arrangement fees) which are priced individually, normally payable on the drawdown of a loan. In line with market practice, we ask that Borrowers discharge our legal and valuation costs.
We operate redemption fees which are priced individually and typically include a make-whole payment for transactions that repay within the first two years.
In cases of arrears or missed payments, standard scale transaction charges of €100 apply to each unpaid cheque/direct debit; to each letter dispatched following non-payment or breach of any term of a loan Facility; and to each visit to ascertain the reason for non-payment or breach of any term of a loan Facility.
Do you lend to trading businesses or sole traders?
Yes, where we lend to owner-occupiers, we generally need the property to be arms-length from the operating entity, which usually involves separating ownership into a separate vehicle and establishing an arms length rent. We are happy to lend to individuals as well as corporate entities, again where the property and the trading businesses are separate.
How do I apply?
We pride ourselves on quick decision making and processes. You can start an application here
How do you value properties?
We require a valuation from one of our panel valuers, to include an opinion on open market value, expected rental value, and vacant possession value. This will be conducted to international standards, i.e. either TEGoVA Blue Book or RICS Red Book.
How does the legal process work?
We require confirmation that all properties have good marketable title, and that we are in a position to take a first ranking mortgage. We will specify via a Facility Letter and associated guidelines what is required to enable confirmation on marketable title and security. In some cases remediation work can be required to make a property suitable for financing – we have established processes for this, and our panel solicitors are familiar in working with our customer’s solicitors through such issues.
What happens if I experience financial difficulty?
We understand that from time to time you may face financial difficulties which may affect your ability to repay your credit agreement with us. It is important that you engage with us to address these financial difficulties. If you find yourself in this situation we would like to bring your attention to our Information Booklet for SMEs in Financial Difficulty which is available for download on our Financial Difficulties page.
What happens if I am dissatisfied?
We aim to provide a transparent, consistent, and efficient service to all our customers. In the event of dissatisfaction, we would encourage you to contact us so we can resolve the situation fairly. However, if your loan was advanced by our regulated subsidiary Finance Ireland Credit Solutions DAC and you remain dissatisfied, you can contact the Financial Services and Pensions Ombudsman at:
Financial Services and Pensions Ombudsman’s
3rd Floor, Lincoln House
Low Call: 1890 88 20 90
Telephone: (01) 6620899
Fax: (01) 6620890