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Development Finance
Lenders will advance a short-term lump sum to help fund new or ongoing projects. If you're looking to fund new construction work, refurbishments on existing properties, or even conversions, this could be right for your business.
1. Complete applications with lenders that are right for your business, and are likely to approve you.
2. Once approved, drawdown funds in stages as you progress with your development project.
3. Repay the initial sum on project competition, usually via a commercial property sale or refinancing.
Take the stress out of projects, with Development Finance through NorthFunding's trusted network.
Development Finance
Development Finance is often advanced in stages as you progress through the project, so meeting the conditions for each milestone stage is key. It's different from a mortgage, as the amount lent is based on the future value of the project.
Typical funding amounts?
£25,000 - £25,000,000
Repayments & Fees?
Loan-To-Value (LTV) or Loan-to-Gross-Development-Value (LTGDV) ratios usually affect interest rates, i.e. the more you borrow against the future value of a project, the higher the interest rate will be.
The loan is repaid when the work has been completed, either via a sale or mortgage refinance. Terms can be 1 month - 5 years.
Eligibility & Security?
Lenders will be looking for experienced developers with a positive track record, professionally and financially. Plans for the project will need to be strong, and adhered to throughout the process, to ensure release of funds at all stages.
Director Guarantees and Company Debentures will be required.