The benefits of using an independent development finance specialist
Getting the right sort of financial backing is important for any development venture, be it commercial or residential
If you're embarking on a development project, one of the first things you'll need to consider is how you are going to finance it. You have a number of options available to you. You could go to your high street bank and ask for a loan or mortgage, but often banks won't 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.
One of the greatest benefits of using an independent development finance agency over your bank is that they can save you money. As a business person, you will probably have a long-established relationship with your bank and will take advantage of this relationship whenever you need to borrow any development finance. Similarly, the bank can take advantage of you; the bank knows how much money passes through your account and that you will keep your word when it comes to making repayments.
The bank can capitalise on this "comfortable" relationship and no longer feel the need to offer you the most competitive deal they can. If, on the other hand, you use the services of an independent development finance specialist, there is a whole world of possibility that is opened up to you. They can shop around for you among a number of lenders and get a development finance package which is exactly suited to your needs. An independent development finance specialist will be able to find a number of different lenders all determined to get your business, so think how attractive the deals are likely to be to you.
An independent finance arranger will save you time as well as money because they do all the work for you. There is likely to be more flexibility with a specialist, too, with the result that they will be able to lend you the money for a length of term that suits you. A broker doesn't earn a fee (usually from the lender anyway) unless they close a development finance deal, so this gives them every reason to find a deal which is tailored to your individual needs.
Abbots Finance is one of the fastest growing independent finance arrangers in the country. Find out how we can help you by calling us now on 0870 2401957.