Development Finance is a specialized form of funding suitable only for professional builders and developers. This form of funding will require the assistance of a professionally qualified and expert finance broker who has the required skills and experience to negotiate the finance on your behalf.
Suitable Development Finance Projects
If you are a professional builder or property developer, you must speak to an expert finance broker, who will help you in understanding the finance strategy required to fund any of the following projects:
The retail property, and
What Information do I need to provide?
Lenders/credit providers will look at several areas when they are considering your loan request. You will need to present a full proposal to the lender/credit provider, and they will require you to provide the following information:
Your Business Plan, which should list your background, professional qualifications, and your trade and project management experience
Your experience as a property developer location of your proposed development Type (Residential or Commercial)
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The profit potential of the development
Your financial statement of accounts and personal assets and liabilities to determine your development cash flow
The amount of equity that you will bring to the development project
Copy of the planning consent and drawings for the scheme
Comparable evidence for the resales
A suitable exit strategy
Can I get an “In Principle” Decision?
When you are applying for development finance, you should have all the required information available so that the lender/credit provider can review and assess your finance proposal. The lender/credit provider will advise you:
If it is possible to arrange the required finance for a development project, and
How long it will take to obtain an “In Principle” decision (You must remember that the lender/credit provider will make the final decision)
Why Choose a Professionally Qualified and Specialised Finance Broker?
It is always wise to start the development finance process with a professionally qualified and specialized finance broker because:
They will help you to prepare a Business Plan, which will set out your development finance requirements in exactly the way that lenders/credit providers wish to see
They know what the standard requirements for development finance loans are
They can accommodate a much faster credit decision for you, provided that they receive from you all the required documents as soon as possible (e.g., your professional qualifications, trade qualifications, and certificates, and your previous building or development experience)
They can structure a Customised Development Finance funding strategy that will meet your needs regardless of the building or development project’s size or complexity.
Through their extensive network of specialized lenders/credit providers and private lenders, they are better equipped to offer you access to funds for your required building or development project.
They can help you to secure the required finance so that you can fund all the stages of the construction cycle:
From financing the initial purchase of the land
Through to progressive construction draw-downs, and
To enable you to cover all the approval costs.
So, this is what you, as a professional builder or developer, need to know about development finance. I sincerely hope this article helps you understand why you need to seek assistance from only a professionally qualified and specialized finance broker, Our Planetary.