Resort Financing in the Caribbean

At Carib Capital, we assist business owners, developers and investors on matters of acquisitions and development of  resort projects in our primary markets of Turks and Caicos, Cayman Islands and The Bahamas.

Private capital for existing developments have become quite common place due to the large exodus of lenders from the region over the past 5-7 years. The great news is we can offer reasonable pricing in a difficult to finance area of the world with our private capital and mortgage funds. Although there still exists a qualification process, it is not nearly as onerous as dealing with the banks (if such opportunities exist at all). In some cases we are able to offer hard money loans as well, usually on smaller loan requests.

Non Institutional Options in the Caribbean Region

As with any large scale project, time is money; Carib Capital has access to timely financing which will keep your project moving. Even in the US and Canada, commercial financing can be difficult to secure at the best of times; this is magnified ten fold in the Caribbean which many lenders still consider too high risk.

Our international lenders know the area, and understand the risks. They are looking for marketable properties, in stronger markets, with a good development team who need financing to purchase their project.

The interest rates on these loans will be higher than bank financing, but they are a much better option for many borrowers due to the ease and speed in which they can fund.

Commercial Financing with the Banks?

Institutional commercial money in the Caribbean is very difficult to source. The banks seem unready to jump back into the fray, luckily we do have other lenders willing to fill the gap. We work with lenders in the US and abroad, who are looking for Caribbean projects to finance. These lenders can be fairly aggressive on the right project. Location, market, experience of borrowers all play a part in determining the viability of the development.

These loans do require qualification, however not nearly as difficult as traditional institutional money. If you are an experienced developer, with the right piece of commercial property in the right location, we would love to hear from you however to discuss your project.

**Please note: The only option we have for ground up development projects require upfront due diligence lender fees (usually in the 0.5-1.0% of the financing required). If you are averse to such fees unfortunately we do not have any options for you at this time.**

Getting Your Project Started

The first step is to send us an executive summary of your commercial project. Once we have reviewed the summary and determined it is something we think we will be able to assist you with, we will schedule a conference call to go over more of the details.

The second step is getting you an LOI (letter of interest). We do this after discussing your deal with funding sources to determine their interest in the deal. Once we have the LOI, we then working on converting it to a LOC or term sheet. At that point, the lender will start their due diligence on the project before completion.

The documents required for your project can vary, however this is a general outline of what you can expect:

• Executive Summary/Business Plan
• 5 Year Cash Flow Projections
• Use of Funds
• Third Party Reports (Appraisals, feasibility studies etc) if available
• Resume of Developers
• 3 Years of Business Financials (if applicable)
• 3 Years of Personal Financials 

Funding any international project is a process, and takes time. We will walk you through the process to ensure we give your development the best chance to arranging the capital you need.