Development Finance: What Lenders Need to Know from Applicants


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It is common knowledge that development finance is trickier to qualify for than most comparable financial products. With development finance, it is almost impossible to qualify for funding without an established track record and sufficient industry experience.

Even so, providers still expect to be presented with extensive evidence of both a project’s viability and the applicant’s capacity to ensure its successful completion. Information needed to support a development finance application falls within five broad categories, as follows.

Basic Facility Request and Overview

This is the introductory ‘elevator pitch’ for your project, where you summarise your objectives, requirements and expectations in a few short statements. This gives the lender a basic idea of what you are looking for in a development finance loan, before probing deeper into the details.

Borrower Information

You will be expected to provide a full overview of your own professional profile, including but not limited to the following information:

  • Your experience and track record
  • Evidence of successfully completed projects
  • Capabilities to fulfil the business plan
  • Your current financial status
  • Information on equity partners

Portfolio of Previous Projects

Your lender will expect to see an extensive portfolio of successfully completed projects that are similar in nature to this particular proposal.

Each project you present to support your application should be accompanied by a brief yet comprehensive summary of all important financial and practical particulars. Your broker will help you prepare and present this part of your application in a concise yet convincing way.

Financial Summary

The figures you present need to be as convincing as possible, yet at the same time 100% honest and accurate. Information your lender will expect to be provided with includes:

  • Curtis costs of the land or existing development
  • Estimated construction and development costs
  • Total estimated costs including borrowing fees and interest
  • Expected GDV and predicted profit up one project completion
  • Project timeline divided into key phases
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It is important to be mindful of the fact that development finance loans are released in a series of stages, in accordance with the completion of key project phases. The timeline you present your lender with will therefore need to indicate when you will require each loan instalment and which stage of your project it will be tied to.

Exit or Refinance Strategy

Nothing matters more than providing evidence of a robust exit strategy. This shows the lender when and how they can expect to get their money back, which typically takes place in one of the following ways:

  1. The complete project is sold by the developer and the funds raised and used to pay off the loan
  2. The short-term development finance loan is refinanced onto a longer-term facility like a commercial mortgage or buy-to-let mortgage

Either way, your job is to convince your lender that you have factored in every possible outcome and planned for all contingencies in advance. If they are confident that they will get their money back, your application for development finance is likely to be accepted.


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Craig Upton

Craig Upton supports UK businesses by increasing sales growth using various marketing solutions online. Creating strategic partnerships and keen focus to detail, Craig equips websites with the right tools to rank in organic search. Craig is also the CEO of iCONQUER, a UK based SEO Firm and has been working in the digital marketing arena for many years. A trusted SEO consultant and trainer, Craig has worked with British brands such as FT.com, djkit.com, Bridging Finance, Serimax and has also supported UK doctors, solicitors and property developers to gain more exposure online. Craig has gained a wealth of knowledge using Google and is committed to creating new opportunities and partnerships.