Hammam

Background

Our clients wanted to open a hammam in Barcelona. They have invested over EUR 500,000 in the project – 50% of the required amount. The intention was to borrow the balance from the local banks. Their requests have been rejected, because the project had been funded by some other company. The banks hate cross-funding.

Mission

Find the balance amount of investments in the nearest months so as to enable the company to complete the hamam construction, to pay salary to the construction crew and the amounts due to the lessors. 

Find the funding as soon as possible so as to commence the operations and to repay the debts.

Solution

We have studied the situation and found the way to raise some investments to keep the project going for the first few months following the opening:

• Formalise the transaction records in a way the banks would understand
• A bank based in Barcelona was ready to provide part of the funding
• The remaining amount would come from a private French fund in exchange for 35% of corporate rights of the borrower after repayment of investments to the fund, all corporate rights would go back to the former owner!

However, the clients needed the whole amount and they wouldn’t risk the corporate rights, so they declined our offer and set about looking for funding elsewhere. 

Result

Team Laduchi Consult never promises mountains and marvels. We always say what really can be done! In any situation, we find a solution to mitigate business risks and losses. That is why we urge the clients to seek assistance in a timely manner and trust us.