The increasing compliance constraints placed upon high street banks since the global financial crisis has meant that they have had to adjust their business focus in many areas. One of the areas hit hardest has been the availability of credit extended to property developers, particularly those undertaking projects where facilities tend to be below the £3 million level.
The effect of this means that experienced developers with existing land stock and a desire to continue to trade independently, have come under increasing pressure to sub-contract to larger developers due to the lack of available funding facilities.
It is this neglected sector of the industry however that forms a core part of our offering. We consider all asset-backed property proposals where land is owned and planning consent has been gained. Once the terms of the loan have been agreed - funding for purchase, materials, labour, professional services or marketing is released in stages as required.
To minimise cash flow problems, interest is rolled over and all payments are made on completion of the project at the end of the loan agreement. As a guideline, we look at projects with a loan to gross development value of up to 65%. However, as a truly bespoke, independent provider, we are able to assess every proposal we receive on an individual basis.