Ortus Secured Finance

Overcoming the complexities of offshore structures

Offshore structures are now a huge part of our economy.

But what exactly are they?

Such entities include companies, trusts and partnerships registered abroad. Offshore structures are regularly used for joint ventures between companies in different countries, financing special purpose vehicles, stock market listings and as holding companies.

However, many lenders are unwilling to lend to offshore structures because they often do not neatly fit into predetermined criteria or risk profiles. Lenders may also be unwilling or unable to grapple with any complexities, which can extend to the security over the asset and even the underlying reason for the loan. These complexities include title anomalies, unusual leases and complex loan buy-backs, as well as settlement transactions.

Being offshore doesn’t necessarily make a borrower complex, but it does increase the number of moving parts in a transaction.

Regardless of any complexities, offshore structures still need access to finance and this is where alternative providers can step in. At Ortus Secured Finance, we are regularly told by brokers that one of our key USPs is accommodating complex structures and borrowers that do not ‘tick the box’ for other lenders.

We believe it is our extensive expertise that sets us apart in this area. Our senior management has proven track records in investment and private banking, working on big transactions with highly sophisticated clients. Our credit committee has over 80 years of combined experience.

Deals with offshore structures also cannot be managed chronologically or on a box-ticking basis – a more holistic, project-based approach is required. For example, calls and meetings with clients need to happen at the beginning of the process; know your customer needs to happen simultaneously with underwriting; and maintaining a deal-tracker system is essential.

We don’t just apply this approach to offshore structures either – we also lend to non-UK nationals and pension funds, among others. Our experience has marked us out as a lender who can deliver, and we look forward to further growing this area of our business.

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