Are you a property developer? What should you do to get finance?

Although the past year has had its difficulties, market confidence is now slowly growing again, fuelled by the vaccination programme and the easing of restrictions. There are a few points which developers should pay attention to when taking their projects forward, and they include:

1. Increase loan terms due to potential delays: although the industry did not stop during the last lockdown, development projects are under lots of pressure due to the delays caused by the initial stages of the pandemic, fuelled by global delays of construction materials.
2. Re-analyse your development finance exit plan: if your developed property is not seeing the sales you expected, you may want to reconsider your exit strategy by refinancing to a lower interest facility in case you wish to hold and sell later.
3. Proving financial stability: property developers must be able to prove solid stability and liquidity in their finances. In the post-Covid world, lenders are now more cautious to assess a client’s net asset position.

Ultimately what lenders want to see is that borrowers have an exit strategy.

Applications to lenders through a broker see a higher rate of approval, and we are here to help. At ASC, we can tailor each financial application to boost your chances to secure finance, we offer a refreshingly personal service. Contact your local ASC office to find out more.