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HCR Law Events

10 January 2021

Financing your 2021 office innovation

If one thing is clear from our new research, published in our Future Workspaces report, it’s that the 2021 workplace is going to look very different. In spring, it will have been almost a full year since we were regularly visiting the office, and so much has changed since then – legally, culturally, professionally.

Hybrid working is likely to be the winner for most companies, offering employees a flexible mix of home and office working. And whilst this will give employers the chance to reimagine their offices for other purposes, it’s going to come with a bill.

Clare Day, our Head of Real Estate Finance, shares her top tips on how to raise the cash:

  1. The ability of a business to raise finance, in the majority of cases, depends on the assets available to a lender against which it can secure its lending. Consider freehold or leasehold property, debtor book or inventory and whether such assets are already charged to any prior funder. This will determine the type of lending available (property finance, asset finance or invoice finance). If the business owns its own property, consider if a sale and leaseback provide sufficient funding for future growth.
  2. Lenders back good people. The credibility of the management team is crucial. Does the business have a good story to tell? Where has the business come from and where is it going? A business that can demonstrate a good track record of growth and has the ambition and commitment – based on a strong business plan with milestones and KPIs – to develop and grow to the next level is more likely to be attractive to and secure funding from investors/ lenders.
  3. Whilst your existing bank is an obvious first port of call, also consider other sources of funding such as additional equity investment, issue of loan notes or bonds, high net worth investors, crowd funding, alternative lenders and grant funding.
  4. Lenders will pay close attention to a business’ financial health and therefore the quality of information you provide to them is key.
  5. Be clear on your funding requirement including how long it is needed for, as this will impact the type of funding and security required.

For more advice, guidance, and support, Clare and her Real Estate Finance team are here to help.

We would also like to give you access to the full 95-page Future Workspaces report, of which office renovation is one of many topics discussed and debated. Download your free copy here.

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About the Author
Clare Day, Partner, Head of Real Estate Finance

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Clare Day is a Cardiff solicitor, specialising in Real Estate.

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