Working with Borrowers

In almost 20 years of lending Semper has had only four occasions where it has had to sell a property as mortgagee in possession. Part of the reason for this enviably low level of defaults is due to Semper treating its borrowers as partners in positive outcomes.

Borrowers seeking private credit do so for one of three reasons we describe under the acronym “DUO”:

D: ‘Deleveraging’ to reduce debt costs

U: ‘Unbundling’ multiple properties from a single lender to multiple and releasing equity in the process or

O: Taking advantage of an ‘Opportunity’.

In each case Semper is assisting by providing a funding solution where bank finance is difficult. In most cases the borrower is transitory, and repayment of Semper’s loan is exit-centric, that is to say; the borrower will leave after achieving their “DUO” goal.

The relationship between lender and borrower is therefore a partnership in assisting a planned transition. It is vital then that this partnership, and the strategy for transition, is identified, and understood and agreed from outset.

Plans can change that affect a successful transition and sometimes these cause delays. It is during these times that the partnership requires strong cooperation and understanding.

Semper sees no sense in moving too quickly to enforce recovery, fracturing the relationship between lender and borrower and adding unnecessary costs that erode equity when a collaborative approach might result in a better outcome.

Semper prefers to work with borrowers during unforeseen delays, and this contributes to our high percentage of repeat business.