Maximising Day-One Capital

In this case study, we explore 'Maximising Day-One Cash' for a £500,000 Development Acquisition

Client Objective
SHEDyt's associate Golden Trust Capital had an experienced developer who required funding to acquire a freehold site valued at £500,000, with a target completion date in a few days. The project included a 12-month build programme, and the client requested a 15-month facility.

A key constraint was liquidity - the client had two properties tied up in another project, making maximum day-one capital release critical to proceed without delays.

THE CHALLENGE
An alternative lender had offered terms which, after fees and costs, resulted in:

• Gross Day One: £278,400
  

• Net Day One: £235,555
  

This level of funding created a significant shortfall, limiting the client’s ability to move forward confidently and efficiently.

THE SOLUTION
We structured a facility specifically to address both cashflow pressure and project flexibility, delivering:

• 70% Loan-to-Cost Day One Funding
  

• 100% of Build & Professional Costs Covered
  

• Net Day One Advance: £315,100
  

• Extended 18-Month Term (vs. requested 15 months)
  

• 12-Month Build Programme Fully Supported

KEY STRUCTURING BENEFIT

• Maximised Liquidity:
  Delivered ~£80,000 more net day-one capital than the alternative lender.
  
  

• Flexible Exit Timeline:
  

  Extended term provides a buffer, reducing pressure and risk of overruns

• Cost-Efficient Funding:
  Interest calculated on a simple (non-compounding) rolled basisCharged only on funds drawn, improving efficiency

• Lower Total Cost of Finance
  Alternative lender: ~£199,400 (14 months)
  Our facility: ~£196,800Cheaper despite higher leverage and longer term
  
  

• No Early Exit Penalty:Minimum interest period of just 3 months, allowing flexibility if the project completes early.

OUTCOME
By restructuring the facility around the client’s real constraint — day-one liquidity — we enabled:

• Immediate progression on the site acquisition
  

• Reduced reliance on external capital
  

• Improved project viability and confidence
  

• Greater flexibility throughout the development lifecycle
  

SUMMARY
This case highlights how intelligent structuring - not just headline rates - can significantly improve outcomes. Golden Trust Capital delivered with the client’s real-world needs:

• More cash upfront
  

• Lower overall cost
  

• Greater flexibility

If you’re interested in learning more about the value of 'Day One Financing' and no-obligation consultation, then please book a meeting here > goldentrust.youcanbook.me

Disclaimer: This information is not financial, tax, or legal advice. Mortgage and loan rates are subject to change.