10 Tips for Choosing Development Finance

Development finance and bespoke land purchase loans are available from an extensive network of specialist lenders.

To ensure you get the best possible deal to suit your requirements and objectives, here are 10 tips and guidelines from the sector’s leading brokers:

  1. Get to know the products available.

It is essential to discuss all potential funding options available with your broker. A bespoke development finance package may be suitable for your project, but there may be more cost-effective alternative options available.

  1. Never limit your search or market comparison.

Ensure that you compare as many deals as possible from a broad and diverse network of lenders. Allow your broker to negotiate on your behalf to get you a good deal.

  1. Provide evidence of experience.

There is nothing more reassuring for a development finance specialist than an established track record. Providing evidence of relevant experience and success with similar projects will always work in your favour.

  1. Get your presentation in order.

You can expect to be asked a wide variety of probing questions by the lender, as part of the application process. Hence, you need to ensure that you have all the necessary answers and supporting evidence available.

  1. Keep your figures honest and accurate.

Financial projections and budget calculations will also need to be provided, as most lenders rarely see beyond the numbers. This therefore means that your figures need to be not only complete and accurate, but also 100% honest and realistic.

  1. Consider every possible contingency.

This is important because you can rest assured your lender will do likewise.  They will want to see evidence that you have considered every possible contingency and outcome, and can provide assurance that they will get their money back.

  1. Start your application as early as possible.

A development finance application can take anything from a few days to several months to complete. Starting as far in advance as possible is therefore advisable, as is completing your application with relentless attention to detail. This is rarely the kind of finance you can organise in a hurry at the last minute.

  1. be specific with timeframes.

Development finance is released in installments at various key stages throughout the project. Rather than vague estimates, it is better to present the lender with specific timeframes for these stage completions. Not to mention, a specific date by which they can expect to be repaid, never a rough ballpark estimate.

  1. Present a meticulous exit strategy.

This is often the most crucial factor of all; how you intend to obtain the capital needed to repay the loan. For example, selling the property on at the time of its completion, or retaining it to let out to tenants and transitioning the loan to a longer-term facility.

  1. Find a good broker.

The importance of working with an established and reputable bridging loan broker cannot be overstated. This alone can determine not only how much you can expect to pay in interest on borrowing costs, but whether or not you qualify for development finance in the first place.

Author – Craig Upton

Craig Upton supports UK businesses by increasing sales growth using various marketing solutions online. Creating strategic partnerships and keen focus to detail, Craig equips websites with the right tools to rank in organic search. Craig is also the CEO of iCONQUER, a UK based SEO Agency and has been working in the digital marketing arena for many years. A trusted SEO consultant and trainer, Craig has worked with British brands such as FT.com, djkit.com, UK Property Finance, Serimax and also supported UK doctors, solicitors and property developers, gain more exposure online. Craig has gained a wealth of knowledge using Google and is committed to creating new opportunities and partnerships.

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