If you are a developer who is experiencing a funding shortage, you need to partner with a team of financial advisers that can help you to alleviate your shortfall. It's important to deal with a broker that has access to loan providers and investors who want to work with you to develop your project or the land that you have acquired for commercial development. Let's look at some of the questions that you should pose to a property finance specialist when you are searching for financial advice about the opportunities for funding that are available to you.
Interest Rate
The first query that you should have is about the interest rate you will be expected to pay. Will a whole-market approach be used or will a select group of lenders and investors be used as a funding source for your project? If you use the Bank Rate as a benchmark, your residential development finance rate should fall close to it. It's important to work with a company that will view your individual project and its strength as they evaluate your application. If you choose the right team, they will know exactly what information is needed for the application and how to present it for review in a professional way.
Loans
Next you will need to ask about the amount of money that you can borrow for your project. Following this, you should ask about the length of time that you can borrow this amount. For example, property development finance is normally arranged based on interest only payments and the term is up to eighteen months. This will depend on the nature and size of your project; your terms will be negotiated for you so that you can complete your work using the right financing for your project without worry and stress.
When to Apply
It's important when you are seeking funding for development finance that you have complete and accurate records that are organised and easily interpreted. You should have all permissions and planning consent in place to present to the lenders showing that you are committed to the project and are securing funding properly. Especially if this is your first project, you need to demonstrate to the lenders that you are knowledgeable about all processes required to begin your work and that you observe local rules and regulations for commencing a project. Should you have questions, it's a good idea to choose a broker and meet with them to ascertain what information will be needed, when you should file your application, and how you can receive assistance with the documentation that is required for your funding to be awarded.
To complete your work successfully you must work with a team that is experienced, dedicated, and committed to excellence as they go about the business of finding the money that you need. Getting the right financial package is paramount to the success that you'll have as your development project progresses.
