Manchester-based Hilton Ventures, the PLUS-quoted bridging finance lender, is looking to raise at least £10m as it seeks to keep pace with growing interest in short term lending.
Hilton wants to raise between £2m and £5m from an issue of interest coupons, which would then be used to lever facilities up to five times that value from banks.
Hilton raised £2m from private investors after it was founded by former Natwest regional director Graham Alcock 18 months ago. Natwest matched the private lending fivefold, giving Hilton lending power of £10m.
Hilton will seek similar facilities from other banks as it seeks to grow the value of its loans out to customers from £1.5m to £20m over the next two years.
Andy Eames, director and head of lending, said the plans would be finalised in July. He added: "A lot of banks are reluctant to lend at the moment and as developers still want to do deals we are finding a lot of interest coming our way from commercial brokers looking for a solution."
Hilton typically lends to cash-strapped developers and investors who cannot secure a commercial mortgage in time to acquire property. As well as an arrangement fee Hilton charges around 1.5% monthly interest, with most loans lasting around three months.
Meanwhile, Hilton Ventures Finance, a subsidiary of the group, has appointed James Kay as business development manager from Loan Options.
The new arrival follows the appointment of Jonathan Bassey to a similar role and brings the number of new recruits to the business to four in the last three months.