Financing
Liquidity should support a strategy rather than interrupt it. Sometimes borrowing against an asset beats selling it.
What it is
Liquidity should support a strategy rather than interrupt it. Where cash is needed and the alternative is selling a good asset at a bad moment, borrowing against it can be the better answer.
Facilities are secured against portfolios, property, or future cash flows, and are only worth arranging if the facility fits the long-term plan rather than fighting it.
What it involves
- Establishing whether borrowing is genuinely better than selling, which it often is not
- Sizing a facility against the wider balance sheet so it does not over-leverage the plan
- Approaching lenders and comparing terms, rather than accepting the first structure offered
- Setting out what happens if the collateral falls in value, before the facility is signed
- Hament does not lend
- Credit is provided by third-party lenders. Hament arranges and advises; it is not the counterparty and holds no book.
- The risk
- Borrowing against a portfolio increases risk on both sides of the balance sheet. A fall in collateral value can force a sale at the worst possible time — the exact outcome borrowing was meant to avoid.
- Licensing
- Securities-backed credit and property lending may require permissions beyond investment advisory. Confirm scope before engaging.