REAL ESTATE BACKED FINANCE
Industrial property finance
Finance an industrial property purchase or use its value to invest in machinery, stock and business growth.
SITUATION
When it makes sense.
You need funds for machinery, stock or a large contract.
The industrial property is unencumbered or has only a small mortgage balance.
You are buying an industrial unit and need to complete quickly.
DETAILS
What you should understand.
Machinery, stock, capacity expansion or acquiring premises. Expected income and the investment schedule must support repayment.
THE PROPERTY
The collateral
We distinguish between purchasing an industrial property and releasing funds against one the company already owns. For a purchase, we review the price, equity contribution and intended completion date. For an existing property, we assess its value, outstanding debt and the net funds the business needs.
Industrial use, condition, access, location and occupancy also matter. Machinery value is not treated as the value of the property offered as collateral.
THE EXIT
Repayment
Repayment should match the activity being funded. An investment in production capacity has a different timetable from a stock order. We assess available cash flow and, where the exit is a sale or refinancing, what supports that plan and how a delay would affect it.
Information that helps.
You can start without uploading documents. If this information is available, it may help us understand your project sooner.
- Location, floor area, use and ownership of the industrial property.
- Available valuation or estimated value and outstanding charges.
- Purchase price and timetable, or investment budget.
- Business summary and cash flow forecast for repayment.
Common questions.
Can a mortgaged industrial property be used?
It may be considered if sufficient equity remains and existing debt can be structured appropriately. Not every mortgaged property will qualify.
Can I continue using the industrial property during the loan?
The proposal uses the property as collateral without requiring its sale at the outset. Its use and any obligations relating to the property are reviewed in the contract terms.
Is machinery included in the property collateral?
This is not assumed. The assets being valued and the guarantees requested by the funder must be identified. The property and equipment investment are assessed separately.
CASES AND PROJECTS
A financing solution for every project
FICTIONALEbro · Zaragoza
Industrial property financeFICTIONAL
28 days to completion · simulated scenario
Fictional example of a company using its industrial building to finance machinery. A temporary facility is modelled to support investment while longer-term bank financing is arranged.
- Funding
- 420,000 €
- Collateral value
- 1,050,000 €
- Loan-to-value
- 40.0 %
- Collateral
- Company-owned industrial building
- Exit
- Operating income and long-term bank financing
- Location
- Zaragoza
Area / capacity: 1.450 m²
View full case study Explore this finance optionOTHER OPTIONS
Other options to consider.
Commercial mortgages
Finance the purchase of the retail unit, office or industrial premises your business needs.
Explore solutionReal estate backed finance
Access business liquidity using property as collateral, without making a sale the first step.
Explore solution
Business debt refinancing
Reorganise loans and maturities so debt better matches your business cash flow.
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