Last Updated on: 22nd December 2023, 03:06 pm
If you’re a developer with big ideas for a large project in the property industry, but you’re short on funding, development finance could be just what you’re looking for.
Deciding whether you need development financing starts with understanding what it is and how it could potentially benefit you. With this guide, we hope you fully explain the term and its advantages.
What is development finance?
Development finance is a special financial service that provides property developers with the necessary funding to complete their projects.
Development financing creates a partnership between both financial institutions and developers, ensuring funding is available at every stage of development – from the initial planning stages, through the build and then to completion.
This form of financing for property development provides an ideal solution to help developers overcome the financial hurdles they face throughout a build.
What are the key benefits of development financing?
There are many advantages to using development funding if you’re a property developer that requires funding support. The main benefits include:
- Flexible funding options
- Bespoke repayment structures
- Enhanced project viability
- Mitigating risks
- Accelerated project timelines
- Expert guidance and support
Flexible funding options
Anybody looking to use development financing for their project can benefit from flexible lending options that suit a wide variety of requirements. If you need funding for construction, land acquisition, or even the final stages of the project, development financing can be tweaked and customised to fit your needs.
Bespoke repayment structures
Once you’ve had your funding, you can arrange repayment but, unlike loans, development funding offers a repayment structure that aligns with the cash flow of the project. Offering this flexibility allows property developers the freedom to continue their work without the burden of incredible debt hanging over their heads.
Enhanced project viability
The addition of the requisite funding allows developers the freedom to realise their vision. This helps them continue their work without compromising on quality that a smaller budget would likely demand. Development financing ensures projects meet, and occasionally exceed, market expectations.
Mitigating risks
By providing a stable funding source, developer finance can mitigate risks associated with property development. Due to the funding being in place, project developers can manage unexpected costs and delays, as well as fluctuations in the market – all without jeopardising their project.
Accelerated project timelines
For many property development projects, delays can occur because of unexpected issues and hurdles. However, with development financing, all of these issues can be expedited because the necessary funding and resources are readily available. So, if any issues do arise, the funding is in place to take care of it. This can be a huge benefit in the competitive world of real estate development because it allows developers to complete their projects much sooner.
Expert guidance and support
Finally, a financial institution that specialises in development financing can offer unique, expert guidance to developers. They’re experienced in real estate development and funding so are primed to face unique challenges that projects often throw up.
Are you interested in development finance for your property project?
If development finance sounds like exactly what you need to complete the property project of your dreams, you can submit your details with Architects Certificate.
Development finance can offer extreme benefits as well as a tailored repayment plan to ensure all issues and delays that occur on property development can be bypassed with ease.
Do you have a development project ready to go but you’re lacking the required funds? Look up development finance!
