Digital future of debt financing – The Property Chronicle
Select your region of interest:

Real estate, alternative real assets and other diversions

Digital future of debt financing

The Professor

Certainly, some advances have been made in the residential sector, where agents are interested in selling more properties to private outfits – ImmoScout24 , Rightmove and idealista are just some platforms. But Rightmove, for example, was started 20 years ago. For residential homeowners it has also become standard to search and compare mortgage offers online via multiple search engines and tech platforms.

However, little progress has been made to help institutional and professional investors and lenders to finance commercial properties efficiently. A group of capital markets fintech companies are providing general tools to financial institutions such as banks, hedge funds, mutual funds or other institutional investors. These range from alternative trading systems to financial modelling and analysis software, but most of these are not suited to commercial real estate debt. This is where Finloop provides an all-in-one digital solution. The platform targets the full value cycle of real estate finance and is a complete digital toolkit for securing, managing and closing CRE loans.

Finloop focuses on delivering three key features:

Security: Often the sale and financing of properties is a private process. When British Land and Oxford Properties announced the sale of the Cheesegrater – 22 Leadenhall Street, London – for £1.15bn to Chinese buyer CC Land, very few market professionals, let alone the public, had even known the building was up for sale. Security and privacy are important factors for large investors also when it comes to financing and negotiating with lenders.

On a personal level everyone uses online banking tools and payment systems, which have proven secure. Something similar can be delivered through a digital commercial real estate debt platform, using the right technology to comply with the highest regulatory standards, with the user having full control over access rights.

Seamless communication and integration: The software provides the missing link to the more opaque real estate lending market. Currently financing terms are as good as the contacts of the transaction manager, originator etc. The large UK clearing banks have introduced automated online tools to approve small financing requests, but having a personal conversation about a specific project in order to achieve better terms is difficult. The financing of a large commercial property is a collaboration between many parties, such as bankers, borrowers, lawyers and valuers.

On Finloop, all communication tools are offered on one digital platform, making all emails, chats and document reviews traceable. This does not mean eliminating the human factor but rather allowing all parties to communicate in real time to provide their input and files, with the possibility to find communications years later.

Subscribe to our print magazine now!