One of the scenarios we see in non-coded lending is borrowers using real property to access liquidity for broader commercial or strategic purposes.

Often, the requirement is described as “working capital” – but the structure itself is property-backed credit.

The borrower may hold substantial equity in an unencumbered or lightly geared commercial asset and require capital to manage timing between transactions, maintain project momentum, refinance short-term obligations, or preserve liquidity without forcing an asset sale.

In many of these scenarios, the challenge is not the underlying security position, but that the requirement falls outside conventional lending parameters. Transitional or time-sensitive funding needs do not always align with traditional servicing models or long-term income verification frameworks, despite the strength of the underlying asset.

That’s where property-secured lending can play an important role – providing access to capital where the commercial rationale, asset position, and exit strategy are clearly identifiable.

Importantly, these borrowers are not always seeking a long-term 30-year refinance solution or a conventional business overdraft facility. In many cases, the requirement is shorter-term, strategic, and directly linked to the underlying property position and exit pathway.

Recently, we funded a transaction involving an unencumbered commercial asset with significant underlying equity, where the borrower required liquidity to support a genuine working capital need in their business.

Rather than requiring asset disposal, we structured a first mortgage facility that enabled the borrower to unlock capital efficiently while retaining control of the underlying asset position.

Importantly, transactions like this are not an exercise in relaxed credit standards. If anything, they require a heightened level of credit discipline.

The focus ultimately comes back to fundamentals:

• Asset quality and liquidity

• Leverage position

• Exit certainty and timing

• Sensitivity to market movement across the hold period

The transaction is assessed on the strength of the overall credit position and commercial rationale – not simply whether it fits within a predefined banking product category.

In our experience, many borrowers don’t necessarily require more complicated lending structures. They require a lender capable of understanding how liquidity fits within a broader property-backed strategy.

At Equity-One, that remains our focus – first mortgage lending secured against real property, structured around the commercial realities of the transaction.