Finance Options for New Property Developers
- Bridging Finance
- Development Finance
One of the biggest challenges that you are likely to face as a new property developer is getting access to enough money to finance your project. Most banks and traditional forms of lending are reluctant to lend to property developers who lack experience and can’t provide a strong CV due to the level of risk involved.
If you’re looking to break into the property development market, specialist property finance brokers such as Finance 4 Business could be the answer. With access to various routes to finance not available to the general public, you can gain access to multiple financial products to support you with your property development. This includes:
Bridging finance, or bridging loans, provide property developers with short-term loans. The improving economic climate and growing bridging loan availability has led to bridging finance becoming an increasingly appealing option for many new developers. This is because typically, bridging loans can offer up to 80% of loan to value ratio and can be accessed quickly with flexible terms of finance. Finance 4 Business can then help with your exit strategy whether this is providing a development exit product or sourcing a commercial mortgage product.
You may choose to take the money in instalments and only pay interest on the money already taken to keep the cost of borrowing down or pay the total interest of the loan in one go at the end of the finance terms.
You may be interested in using bridging finance for development projects where:
- Your capital is tied up with existing projects
- You are buying projects which you can not get a mortgage on
- You are building a buy to let portfolio
- You are buying property at auction to redevelop
Joint Ventures (JV) can be classed as two separate categories. The first is associated with experienced developers, who require 100% funding for their development project. This can be arranged through one of our JV lenders and is usually arranged on a profit share basis.
The second category would be formed between an inexperienced developer, who has cash resources to contribute to a scheme but needs to partner with an experienced developer in order to satisfy the general criteria of the lender. This helps ensure the project is delivered successfully from a budget and timing perspective.
The Perfect Solution
A Joint Venture in the right circumstance can be the perfect solution, with numerous lenders now willing to consider 100% funding. We pride ourselves on our ability to allow you to access an extensive panel of experienced lenders, meaning you will have a multitude of options at your disposal for financing property development projects.
Finance 4 Business
Finance 4 Business have access to specialist lenders across the country and we are experts in providing property development finance solutions. Whether you are a first-time developer or boast a full portfolio, we can offer competitive, flexible financing with unrivalled support.
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