the funding bridge innovation - liquid...

INNOVATIONThe Funding Bridge

6% P/Aby Liquid Assets

THE OFFERING

Traditionally investors often place their money with abank, and just wait for their return, not really knowingwhat risks are being taken with their capital.

The Funding Bridge is simple to understand, and thefinancial security supplied by each and every lender thatengages with the fund are transparent.

The basis of this investment is to achieve strong returnsfor your money. Understanding what happens behindthe scenes of any investment, is an important part ofunderstanding the risks attached to any investment.

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THE PROBLEM

Bridging loans associated with this structure will be 100%focused on UK property backed loans. Combiningcommercial and private loans. Examples includecompanies looking to complete a purchase of a property,before gaining further longer term funding by offering themshort-term access to funding, at a higher rate of interest.

Inflation and time can have a very detrimental effecton the value of cash sat in a bank.


BRIDGE LOANS

A bridging loan, or short-term loan as it is often known,is a method of refinancing a property or financingthe purchase of a property for a short period of time,typically until the buyer receives an anticipated inflow ofcash such as the sale of their existing property.

In other words, this short term secured loan ‘bridgesthe gap’ until the buyer is in a position to finance thepurchase in a more standardised manner (e.g. with astandard mortgage).

A bridge loan is a type of short-term loan, typicallytaken out for a period of 2 weeks to 3 years pendingthe arrangement of larger or longer-term financing.It is usually called a bridging loan, a "caveat loan," oreven sometimes also known in some applications asa swing loan.


BACKGROUNDFor the right client, under the right circumstances, bridgingcan be a valuable funding tool. There are many situationswhere it could offer a suitable alternative.

Short term loans are used for a number of reasons.These range from conventional bridging, which is where ahomeowner wishes to purchase a new home but isunable to sell their current property, to auction finance orbusiness loans.

Short term loans are generally suited to borrowers whowant money quicker than can be obtained frommainstream lenders such as banks and building societies,or where they will not lend due to the current state of theproperty e.g. where it needs a kitchen or bathroominstalled to make it habitable, or due to their underwritingcriteria.

As the name implies, the loans are only suited to thosewho need the money for a short time. They are not suitableas a replacement for long term finance. The most importantaspect of taking out a short term loan is making sure youcan repay it by the due date.


THE OPPORTUNITY

The Funding Bridge offers qualified applicants a source offunding where there is need for short term secured lending,fully secured against UK property.

Bridging funding is a specialist sector in which banks oftenchoose not to enter. This offers investors a great opportunityto be part of this ever growing market.

Estimates place bridge financing last year in the UK ataround £2.5 billion, which equates to a size of nearly£50 million in transactions per week .

Helping clients where banks fail to deliver


SECURED BRIDGING

Bridging loans associated with this structure will be 100%focused on UK property backed loans. This will combinecommercial and private loans, the maximum loan to value(LTV) will not exceed 70%.

Examples would include people looking to complete thepurchase of a property before selling their existing home,by offering them short-term access to money at a higherrate of interest.

In the commercial space the types of properties that mightrequire bridging would include multi-unit apartmentbuildings, mixed-use developments, hotels, medicalbuildings, shopping centers, office buildings or other kindsof commercial projects. Sometimes single-family homesoperated as investment properties (not occupied by theowners) and owned by a corporation or limited liabilitycompany take out commercial mortgage bridge loans,again at a higher rate of interest.

Secured lending, with first charge against UK property


CHARGES

This investment is designed to have low operating costs.The investment manager will deduct the following expenses from the fund

Annual Management Charge

The company is paid 1% of the gross fees paid to thefund by the underlying clients. This fee is reflected andfully highlighted in the offering memorandum.

Low cost management fees


INVESTMENT RETURNS

Fixed return of 6% per annum*

Dividend payments will be made quarterly

Minimum investment 10 000 GBP, 15 000 USD & EUR

Beneficiary transferable asset

*The investment returns quoted are net returns after management fees are deducted


GROWMAKING YOUR MONEY


www.liquid-assets.org

Liquid Assset Investments Limited

European Office:2nd Floor, 1 - 5 Clerkenwell Road, London, EC1M 5PA

Telephone: +44 (0) 207 692 [email protected]

the funding bridge innovation - liquid...

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