Introduction To Rental Bond Loans

Rental Bond Loans , investors will only be interested in viable projects in the medium and long term, and in addition very profitable. The property security firm must then justify a potential market for its products, and on the other hand it will have to generate enough profits to interest the investor.

Note that a company belonging to the property security sector, but very innovative will have no trouble finding funding through a business angel that will help develop its business. Moreover, a possible recourse to a financial lease (lease with a purchase option at the end of the contract) is only possible if the activity of the company (provision of services in video surveillance, access control, detection fire, alarm installation service, etc.) generates enough profits to be able to pay the rent of the required investments.

Government bonds help finance businesses over a longer period of 5 to 7 years and at a fixed rate. Lenders are various financial institutions such as management companies, insurers or banks.

Public bond financing is a drawback for the majority of companies because the entry ticket starts at several hundred million euros and often requires an external rating of the company; This then imposes total transparency of the financial information (quotation), and excludes most companies ETI, SME and TPE.

Private bond financing is carried out by non-bank players. These financings are particularly interesting because their maturity sometimes reaches 10 or 12 years. In fact, the management companies that offer these solutions manage to find long-term investors, particularly in the United States.

The financing conditions are very flexible because it is possible to agree on a repayable repayment or revolving. This type of loan is aimed at a large number of companies because the minimum amount of loans is around ten million euros. External rating is not always required and the borrowing rate may be fixed or variable depending on the negotiations.

Prudential regulation and tightening borrowing conditions are pushing companies to diversify their sources of financing. Banks have an interest in supporting companies in this structural evolution of the market so as not to be replaced by non-bank players.

Thus banks assume this tendency of disintermediation. They offer funds and structured products to investors to continue financing companies over the long term. Moreover, Rental Bond Loans Services has set up a dedicated service for investors such as asset managers, asset management companies, alternative investors or brokers. It is the Market and Financing Services division, which develops these sophisticated investment solutions.

Some creditors choose to support the diversification of corporate financing.

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