We provide lender-ready capital raise packaging and debt or equity placement support for business owners and buyers looking to secure serious term sheets and close funding on a defined timeline.
For business owners and acquirers pursuing private debt or equity, submit your deal for review. We revert within one working day with next steps and either a quote for our services.
For pre-submission discussions, we offer paid consultations. To initiate underwriting and lender outreach, submit the deal.
Real estate deals fail for one boring reason more than any other: the numbers almost work, but not fully. Senior debt is approved, equity is partly in, and there is still a shortfall that blocks closing. That shortfall is the gap.
Gap funding exists to close that exact problem. If you are an investor with a live purchase, refinance, or repositioning deal, this page breaks down the mechanics and shows how to structure a fundable file.
Gap financing in real estate is subordinate capital used to fill the difference between total project cost and the amount covered by senior debt plus sponsor equity already committed. In plain terms, if a bank funds only part of your capitalization plan, gap financing fills the missing tranche so the deal can close.
When lender leverage is lower than your underwriting base case, gap funding covers the missing equity layer needed to close.
Shortfall between senior loan proceeds and the capex plan can be covered with a junior tranche tied to value creation milestones.
Sponsors often need interim capital until NOI stabilizes and a take-out refinance is available on stronger terms.
When purchase deadlines are tight, gap capital can protect the transaction while senior processes continue.
Investors buying multiple assets may use gap funding to avoid diluting ownership too early.
If refinance proceeds are below expected balance, gap funding can protect continuity and avoid distressed exits.
Gap funding for down payment needs is common when an investor has strong assets and clear execution capability, but wants to preserve liquidity for operations, capex, or contingencies. It can also make sense when a lender cuts leverage at committee stage and the sponsor does not want to lose the asset.
| Scenario | Typical Problem | How Gap Funding Solves It |
|---|---|---|
| Acquisition with 65% senior loan cap | Sponsor planned 75% leverage | Junior tranche fills the 10% shortfall and preserves the closing timeline. |
| Last-minute leverage cut by lender | Equity check becomes larger than planned | Gap layer protects the purchase contract and avoids deal collapse. |
| Capex-heavy value-add strategy | Senior lender excludes part of improvement budget | Structured junior capital funds the excluded capex scope. |
| Portfolio acquisition | Need speed without over-dilution | Gap capital bridges closing, then gets refinanced after stabilization. |
The mechanics are straightforward. Execution quality is where deals get won or lost.
| Step | Execution Detail |
|---|---|
| 1) Capital Stack Audit | Confirm total uses, senior debt limits, equity committed, and the exact gap amount. |
| 2) Structure Selection | Choose instrument type: mezzanine debt, preferred equity, junior secured debt, or structured bridge tranche. |
| 3) Risk and Return Mapping | Set coupon, fees, maturity, intercreditor terms, covenants, and exit route. |
| 4) Lender-Ready Packaging | Prepare underwriting memo, data room index, legal document map, and downside case sensitivities. |
| 5) Counterparty Routing | Run targeted outreach to counterparties that already finance similar asset type, ticket size, and jurisdiction. |
| 6) Decisioning and Close | Negotiate term sheet points, align intercreditor mechanics with senior lender, finalize legal documentation, and close. |
Use case: sponsor wants debt capital above senior loan with defined tenor.
Trade-off: higher pricing and tighter covenants than senior debt.
Use case: ownership-level capital where cash flow waterfall is negotiated.
Trade-off: control rights and economics need careful drafting.
Use case: layered debt stack with clear lien and intercreditor hierarchy.
Trade-off: documentation is heavier and timing must be managed tightly.
Use case: short-dated gap while asset transitions to stabilized operations.
Trade-off: requires a credible refinance or sale exit plan.
| Workstream | Minimum Standard | Why It Drives Approval |
|---|---|---|
| Purchase and Legal Docs | Executed purchase agreement, clean ownership path, enforceable rights | Legal certainty reduces closing risk. |
| Financial Model | Income assumptions, downside case, DSCR path, refinance feasibility | Gap capital is repaid through performance and exit, not optimism. |
| Sponsor Track Record | Past execution on similar assets, timeline discipline, contractor quality | Execution history often decides credit committees. |
| Asset-Level Diligence | Valuation, condition reports, lease profile, market comps | Stronger diligence lowers loss severity assumptions. |
| Intercreditor Framework | Priority of payments, cure rights, remedies, standstill terms | Clear rules prevent disputes at stress points. |
Financely runs a transaction-led mandate model for real estate sponsors who need to close, not just discuss options. We screen fit, build lender-grade documentation, map the right counterparty set, manage structuring negotiations, and push the file to decision.
If your transaction includes acquisition debt, bridge debt, or layered capital, you can review our full Commercial Real Estate financing services to see where gap funding sits inside the broader capital strategy.
Service scope is advisory and placement on a best-efforts basis. No guaranteed approvals, no fake timelines, no vague promises.
Submit your file with target amount, use of proceeds, purchase status, and timeline. We will map the gap and define the execution lane.
It is subordinate capital that fills the difference between total project cost and what senior debt plus committed equity already cover.
Acquisition shortfalls, down payment gaps, capex layers, refinance gaps, and bridge periods before stabilization or refinance.
Define the shortfall, pick the right structure, package the file for underwriting, route to matched lenders, negotiate terms, then close with intercreditor alignment.
Yes. Gap funding for down payment needs is common when lender leverage is lower than expected and the sponsor wants to preserve cash for execution.
Post-revenue sponsors and investors with live transactions, clear use of proceeds, and complete documentation.
No. Mandates are handled on a best-efforts basis and all outcomes depend on underwriting, legal diligence, compliance checks, and final counterparty approval.
Disclaimer: This page is for informational purposes and does not constitute investment advice, legal advice, or a guaranteed offer of credit. Any financing outcome is subject to underwriting, KYC and AML checks, sanctions screening, legal diligence, collateral review, and third-party approvals.
Financely advises growth-focused businesses on accessing capital by introducing their opportunities to professional investors. Financely is not a securities broker or dealer. Where appropriate, engagements are coordinated with regulated broker-dealers, investment banks, legal counsel, and other specialists.
Financely does not solicit, offer, or accept orders to buy or sell securities and makes no assurance regarding capital-raising outcomes.
Services are strictly business-to-business. Financely does not provide personal finance, consumer credit, or retail advisory services.
Advisory services are reserved for post-revenue companies that recognize the time and resources required for professional underwriting.
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All mandates start with an RFQ. We review submissions, issue a brief Go/No-Go memo, and where bankable, release a Term Sheet that leads to funding. We arrange capital across Senior Secured, Unitranche, Second Lien/Mezzanine, Preferred Equity, and Gap Solutions. We do not process deals by email or chat.
Letters of Credit, Standby LCs, Confirmations, Receivables Finance, and Inventory Lines with control.
Funding arranged for trade flows with instruments sized to your cycle and aligned to delivery and settlement.
Move forward to secure working capital and keep goods moving. Submit the RFQ to start underwriting for funding.
Limited or non-recourse structures for energy and infrastructure with lender-ready materials.
Funding solutions aligned to project cash flows with credible covenants and conditions to reach notice to proceed.
Advance the file to termable status. Submit the RFQ so we can underwrite and secure funding.
Debt and Preferred solutions anchored on cash flow, Quality of Earnings, and clear closing mechanics.
Funding across senior, unitranche, and preferred to match stable cash flows and acquisition timelines.
Get financed on workable terms for closing. Submit the RFQ to start underwriting.
Acquisition, development, bridge, and refinance with lender-ready packs and third-party reports managed.
Funding calibrated to DSCR, leverage, and tenancy with terms designed to close.
Move to a financeable package. Submit the RFQ to initiate underwriting for funding.
KYC and Source of Funds required. Engagements are best-efforts and subject to underwriting. Preference for operating companies with meaningful revenue. See our FAQ and Procedure.
Financely Inc. (“Financely”) provides corporate-finance advice and is wholly owned by Aurora Bay Trust, a trust formed under Bahamian law, together with its authorized affiliates. Depending on deal structure, jurisdiction, and local rules, engagements may be carried out through Financely Group LLC, a non-deposit-taking, non-banking financial company; Ashford Capital Advisory LLC; or another related entity.
Financely and its affiliates are not registered as securities broker-dealers and do not execute securities transactions or hold client funds or securities. When a mandate involves the purchase or sale of securities and a registered intermediary is required, any orders are introduced to and executed by one or more independent U.S. broker-dealers registered with the SEC and FINRA. Those broker-dealers are solely responsible for trade execution, custody, and related regulatory obligations. Nothing in this material constitutes an offer, solicitation, or recommendation to buy or sell any security or to engage in any specific transaction. Before engaging Financely Group LLC, Ashford Capital Advisory LLC, or any affiliate, you are responsible for confirming that such engagement complies with your own legal, regulatory, tax, and other requirements. In the United States, certain advisory activities may be conducted in reliance on exemptions available under the Investment Advisers Act of 1940, including the “foreign private adviser” exemption where applicable. Our services and regulatory status may vary by jurisdiction and by transaction type.
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