What is a Request for Funding (RFF)?

An RFF is a formal request from a broker to a lender for funding consideration. It sits between an initial enquiry and a full deal pack. The RFF outlines the borrower’s funding need, the asset or business being financed, and the headline terms sought. It asks the lender: can you move this forward?

The RFF is not a yes-or-no question. It is a structured proposal that triggers a lender’s assessment process. A good RFF gives the lender enough information to decide whether the deal fits their criteria. A poor RFF wastes both parties’ time.

In commercial debt and property finance circles, the RFF is standard practice. Brokers use it to qualify lenders before investing in full due diligence packs. Lenders use it to filter opportunities at speed.

How does an RFF differ from a deal summary or deal pack?

Three distinct documents exist in the broker-to-lender workflow. Conflating them creates friction.

A deal summary is a one-page overview. It answers: who is the borrower, what do they need, what is the security? A deal summary is marketing. It sells the opportunity. It assumes the lender is already warm.

An RFF is a qualified proposal. It answers: does this fit your lending policy? An RFF includes headline metrics, asset detail, borrower financials in summary form, and the terms requested. It is a permission-to-proceed document.

A deal pack is complete submission material. It includes every document the lender will need to underwrite: financial statements, valuation reports, legal title, proof of funds, personal guarantees, insurance schedules, lease agreements, environmental reports. A deal pack is submission-stage work.

The RFF bridges the gap. It stops brokers from building 200-page packs for lenders who will decline in principle. It stops lenders from requesting packs when a summary would suffice.

How should a broker structure an RFF for a property finance lender?

Structure your RFF in this order.

Header and context. State the borrower name, the asset address or business description, the funding amount sought, and the lender type this targets. Include a one-sentence indication of urgency: are you working to a deadline?

Borrower profile. Name the principal borrowers. Include their experience in property or business, any prior exits or successful transactions, and relevant directorships. Lenders want to know if the borrower has a track record. Two to three sentences. No life stories.

Asset detail. Describe the property or business asset. Include location, type, condition, and current use. Add the valuation or asking price. If it is a trading business, state the annual turnover or EBITDA. For development, specify the planning status and completion timeline. Lenders decide fit based on asset type first.

Funding structure. State the loan amount sought, the loan-to-value or loan-to-cost ratio, the proposed term, the repayment mechanism, and the interest rate or margin sought. Use realistic figures based on recent comparable lending.

Security. Describe what the lender will be secured against. First charge on the property? Personal guarantee? Subordinated second charge? Be clear about security position and any complications.

Exit or repayment plan. How does the borrower intend to repay? Refinance at a lower rate? Sell the asset? Increase turnover to service the loan from cashflow? A fuzzy exit plan signals a fuzzy borrower.

Key dates and constraints. When does funding need to be in place? When is the purchase completing? When does the deal require a lender decision? Lenders want deadlines stated in writing.

Borrower financials in summary form. Include the last two years of personal tax returns or trading accounts. Do not include full appendices. Extract the key lines: gross income, net profit, shareholder funds. For companies: include the last filed accounts with net asset position and debt levels.

Any red flags or mitigants. Has the borrower had a County Court Judgment or IVA in the past five years? State it. Has the asset been repossessed before? State it. Lenders discover these issues anyway. Stating them first signals honesty and controls the narrative.

Next steps. What do you need from the lender? Agreement in principle? A lending decision? A full pack request? Be explicit. Propose a follow up date.

Keep the RFF to four to six pages including borrower financial summary.

When should a broker use an RFF instead of a standard deal summary?

Use an RFF when the funding amount exceeds the lender’s standard envelope and needs policy-level sign-off. A lender with a standard limit may fund on deal summary alone. A larger request requires RFF-level qualification.

Use an RFF when the borrower or asset carries complexity: first-time landlord, recent business loss, joint-tenancy security, overseas borrower. A clean vanilla deal moves on summary. A deal with moving parts needs RFF structure.

Use an RFF when you are not confident the lender will proceed. An RFF filters before you burn time on a full pack. If you know the lender will decline, skip the RFF and move to the next lender.

Use an RFF when the lender has explicitly asked for one. Some lenders train their broker networks to submit RFFs first. Respect that process.

Do not use an RFF when the lender has already issued an Agreement in Principle. Move to deal pack. Do not use an RFF when you have a warm relationship with the lender and they have flagged appetite. A summary may suffice. Do not use an RFF when the deal is vanilla: standard residential mortgage, commodity commercial term loan. Lenders process these on summary.

What information should an RFF include?

The essential checklist: borrower name and experience level, asset location, type, condition, and valuation, funding amount and loan-to-value ratio, proposed term and repayment structure, security description and charge position, exit or repayment plan, completion date and funding date, borrower’s net worth or last two years’ financials, trading accounts or personal tax returns, County Court Judgments, IVAs, or prior credit events disclosed, any mitigating factors, and your contact details with a proposed follow up date.

An RFF is not a work of art. It is a filter. It saves time for both sides.