Applying for property development finance is not quite as simple as completing a conventional loan application form. With development finance, you are effectively looking to win the approval of a willing investor for your project. One who is willing to put a substantial amount of capital on the line, based entirely on the information you provide them with.
This is why property development finance applications should always be approached with the help and support of an experienced broker. Particularly given how many development finance specialists offer their services exclusively by way of broker introductions.
Even with a top-rated broker in your corner, you still need to know exactly what lenders are looking for in a viable application for funding. There are no guarantees, but there are various ways by which your application for development finance can be strengthened.
All Relevant Documentation
The most important step in the process is to ensure that you prepare and present all essential documentation in the right way. Importantly, all the documents and paperwork needed to support your application must be prepared in advance.
Lenders expect to see formal and convincing evidence of a case worth backing. This will include things like a comprehensive business plan, accurate financial projections and evidence of extensive research. A full set of audited company accounts will also need to be provided, along with information on shareholders and stakeholders.
Pulling together the essential information needed can be time consuming, therefore must be done ahead of time. Having everything ready to submit at the time of your application can also make for a more convincing case.
An Understanding of Your Requirements
Your broker will also ensure you fully understand how property development finance works, along with how the various options available may or may not be suitable for your requirements.
Securing development finance is something that can be approached from a variety of angles, depending on the nature and extent of the project. Applying for the wrong type of funding entirely can be off-putting for prospective lenders, while at the same time complicating and delaying application processes.
If there is an alternative financial product that may be more suitable, such as a bridging loan, your lender will ensure it is explained and recommended accordingly.
All Outcomes Carefully Considered
Your lender will want to see evidence that you have taken all possible outcomes into consideration. This means creating several budgetary predictions, indicating all realistic outcomes for your project over the short, medium and long-term.
Your job is to convince them that irrespective of the outcome, they will get their money back in full and on time; a task that involves presenting your project as a predominantly fool-proof venture, where in the unlikely event of failure their capital will be covered by appropriate assets.
As the viability of your application will be determined based on these projections, seeking the support of an experienced broker at the earliest possible stage comes highly recommended.