ALTERNATIVE FINANCE
Private credit and alternative finance for companies and developers
Alternative finance is lending by private debt funds, family offices, crowdlending platforms and other non-bank investors. It fits when the bank cannot go far enough because of tenor, structure or asset type.
At Manifest we find the right lender for each deal and prepare it with the same judgement a credit committee would apply.
If any term is unfamiliar, it is explained in our financing glossary.
WHEN
When does it make sense?
Alternative finance does not replace the bank: it complements it. It is usually the answer when:
- The bank asks for pre-sales or collateral the project does not yet have, for example when buying land or starting a development.
- The deal needs speed: a purchase with a fixed deadline or an opportunity that will not wait for a bank committee.
- The company already has high exposure to its banks and needs a different source of finance.
- The asset or the sector falls outside bank risk policy: hotels, care homes or assets being repositioned.
- An additional tranche is needed above the bank debt to complete the structure.
- Debt needs refinancing, or time is needed while an asset is sold or another deal closes.
INSTRUMENTS
Instruments we use
We choose the instrument to fit the deal, not the other way round. These are the ones we use most:
Direct lending
Loans from private debt funds directly to the company, without going through a bank. For growth, acquisitions or refinancing.
Bridge loan
Short-term, real estate secured finance to cover a temporary gap until a sale, a refinancing or a payment comes in. More →
Land and development finance
To buy land, fund the developer’s equity or start construction before reaching the pre-sales the bank requires. More →
Mezzanine debt
A tranche between senior debt and equity, to complete the structure without giving up control of the company. More on mezzanine and subordinated debt.
Sale-and-leaseback
The company sells a property it uses and leases it back, releasing cash without taking on debt. More →
Crowdlending and crowdfunding
Regulated platforms that fund business and real estate projects with contributions from many investors.
COMPARISON
Bank or alternative finance
| Traditional bank | Alternative finance | |
|---|---|---|
| Main focus | Track record, balance sheet and repayment capacity on current numbers | The project, the asset behind it and how the money is repaid |
| Speed | Depends on committees and internal policies | Usually a faster decision |
| Flexibility | Standard products | Structures tailored to each deal |
| Cost | Lower | Higher, reflecting the greater risk the lender takes |
| When to choose it | If the bank can do it, it is usually the cheapest option | When the bank cannot go far enough, or not in time |
If your deal can be financed by a bank, we will tell you. We look for the option that fits best, not the one that pays the highest fee.
CREDIT JUDGEMENT
What an alternative lender looks at
It is 27 years of bank credit risk judgement applied to every deal:
- The collateral and its liquidity: not just what the asset is worth, but how easy it would be to sell.
- Leverage: how much of the value or the project cost is financed (LTV and LTC).
- The exit: how and when the loan is repaid. A sale, a bank refinancing, business cash flows.
- Debt service capacity: whether income covers interest over the life of the loan.
- Who is behind it: the experience of the developer or the management team.
- Documentation: complete, organised and consistent from day one. Nothing speeds up an approval more.
METHOD
How we work
- First conversation, free of charge. You tell us about the deal and we tell you frankly whether it can be financed and how.
- Analysis and structuring. We review the numbers, collateral and exit, and define the most suitable financing structure.
- Information pack. We prepare the documentation the way a credit committee asks for it.
- Presentation to selected lenders. Only to those that fit the deal, so it does not get burnt in the market.
- Negotiation and closing. We support you in negotiating terms through to signing.
Fees: we work mainly on a success basis. Terms are agreed in writing before we start.
SECTORS
Sectors
Residential development · Land · Hotels · Care homes · Logistics and industrial · Agribusiness · Services
QUESTIONS
Frequently asked questions
Is alternative finance more expensive than bank finance?
Yes, usually. The lender takes more risk or moves faster, and prices that in. That is why we use it when the bank cannot go far enough, or when the cost of not doing the deal is higher.
How long does a deal take?
It depends on complexity and on the documentation available. With a complete information pack, the lender’s decision is usually faster than at a bank.
Do I need real estate collateral?
In many deals yes, but not in all. Direct lending to companies can rely on business cash flows. We look at it in the first conversation.
Can it be combined with bank finance?
Yes, and it is common: a bank tranche and an alternative tranche, or a bridge facility later refinanced by a bank.
What do I need to get started?
For the first conversation, a description of the deal, the amount and the collateral or asset is enough. Afterwards we ask for what is needed to prepare the information pack.
Have a deal the bank is not solving?
Tell us what you need, the approximate amount and what asset or collateral is behind it. We will reply with an honest view of the options. You can also call us on +34 678 131 989.
The information on this page is general and does not constitute an offer of finance. Each deal is analysed individually and approval always depends on the lender.