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Tracking down affordable finance for property development or construction project can be a daunting prospect. Traditionally, securing the funds needed to complete more ambitious and extensive projects has been a challenge.
Not to mention, a time-consuming and complicated experience.
Can Property Finance Truly Be Fast, Easy and Uncomplicated?
Today, there are providers on the specialist lending market that claim to offer fast-access loans with quick completions and no unnecessary complications. Many of which are advertised as suitable for property development purposes, but can this kind of funding ever truly be quick, easy and uncomplicated?
Commercial Bridging Finance
The short answer is yes, but with a couple of important caveats.
Increasingly, commercial bridging finance is becoming a popular choice among developers looking to avoid delays and disruptions. With bridging finance, it is technically possible to organise a loan of any size within just a few working days.
Bridging loans are strictly short-term facilities, typically repaid within six to 24 months of the loan being issued.
With bridging finance, the funds are secured against business assets of value owned by the applicant – typically a residential or business property. But it is also possible to secure a bridging loan against the current or future value of development in the process.
This makes it a viable option for financing property development for construction company projects.
In terms of its speed and simplicity, the time it takes to arrange a bridging loan will be determined by three things:
- The strength and credibility of the borrower’s application
- The preparation of all essential documentation and evidence
- The quality of the broker support enlisted
For a bridging loan application to be processed as quickly as possible, the borrower needs to provide as much accurate, detailed and up-to-date information as possible. Delays and disruptions occur when lenders feel the need to seek clarification or verification, prior to authorising a bridging loan.
This is where experienced broker support can prove invaluable, ensuring all the right boxes are ticked before the application is submitted. Chances are that if your broker is happy with your application, so too will be your lender.
Traditional Development Finance
Technically speaking, it is also possible to organise a traditional development finance loan within a short space of time. However, development finance specialists demand far more extensive information, evidence and documentation than bridging lenders.
A development finance application is, therefore, more likely to hit snags along the way than a commercial bridging loan application. That is unless appropriate broker support is sought from the earliest possible stage.
Like bridging finance, the speed and simplicity of a development finance application will be determined by its credibility and completeness. Avoiding delays and disruptions is all about presenting a convincing case, which is where the help and support of a broker can prove invaluable.
If speed and simplicity are your priorities, enlisting broker support at an early juncture comes highly recommended.
