Where to look for your development finance
Whether you are building one or two houses or a full-blown shopping centre, it's important to get the right sort of development finance
Whatever the type of development you are considering, be it commercial or residential, and whether you are new to the business or not, one of your first considerations will probably be how you are going to finance it.
You have a number of different options available to you. You could get a regular high street loan or mortgage, but often lenders do not provide these for development purposes and they may be unhappy about lending the amount you require. If you have developed property or land before, you may have capital from other developments that you could draw on, but it might not be enough to purchase both the land and finance the build costs.
The other alternative is to use a company which specialises in arranging development finance. These companies have experience in assessing the development potential of a site and in forecasting returns from it, which means they are happy to lend development capital. Some of the benefits of this type of funding include:
Access to lenders - an independent finance broker has access to a wider range of lenders. This is likely to mean that they will be able to better any offer that a high street bank can make you
Flexibility - a specialist will be able to lend you the money for a length of term that suits you Bespoke finance - Your loan and any repayments can often be tailored to the scale and length of your project, rather than imposing harsh conditions and time periods
Money saving - Development finance specialists will not usually ask for any money from you as they are paid by the lender
Time saving - The worry and bother of finding suitable funding is taken away, as someone else is doing the work on your behalf
Expertise - a good development finance company will understand your plans and ask about your expected returns and your timescale. Their attention to detail can help you to refine your plans
It's essential that you can trust whichever development finance agency you decide to go with. Both of you must be comfortable with the arrangement. Foster a good relationship with your development finance company and they could be a ready-made partner in any future developments.
Abbots Finance is one of the fastest growing independent finance arrangers in the country. We will conduct a cost free assessment of your funding needs and provide you with possible solutions without any obligation. With over 30 years' experience in the finance, banking, corporate and accountancy sectors, we are sure to be able to help. Why not give us a call now on 0870 2401957 to see what we can do for you.