The process involved in applying for property development finance is fairly complex, in many ways it is best left to the talents of a professional property development finance broker. For those people considering making an application for any form of property development finance, there are some simple tips outlined below which are designed to help you prepare for your application and maximise the chances of you receiving the level of property development finance you require.
Before approaching any lender and beginning the application process for property development finance you should prepare all of the relevant documentation in advance. Every application for property development finance will need to be accompanied by a whole wealth of supporting documentation. This documentation will include things such as a completely detailed business plan, which clearly demonstrates the company’s ability to carry the level of debt they will be taking on, a set of audited company accounts, and in some situations you will need to divulge the details of shareholders and company officials. By preparing this documentation in advance you will have time to review it, highlight any problem areas and deal with these issues before presenting this information to the lenders. A commercial finance broker would be able to assist you in creating all of this documentation, and will be able to advise you upon the format in which lending establishments were expect it presented.
You should produce several budgetary forecasts, each of which will present figures showing how different levels of debt will affect your company in the short, medium and long term. By creating several different forecasts you will be able to judge how much property development finance your company can carry and which level of finance would be the most probable to be accepted by lenders. Once again, the services of a property development finance broker can be employed; they will understand fully how to produce a forecast which takes into account the possibility of a changing interest rate and a variable term.
Try to gather as much information about the poverty finance lending market in your area, and within your industry. Try to discern if similar projects to yours have been accepted by lending houses, and if not why not. This will allow you to tailor your application and make it more favourable in the eyes of the lenders, you only get one chance at making a successful application so don’t waste it by not making yourself aware of pertinent facts before you apply. In this situation the assistance of a property development finance broker is invaluable, they have a firm knowledge of the local lending market, and will be able to advise you upon issues faced by your own particular commercial venture. Your property development finance broker will be your spokesman with the lenders, and will be able to highlight any potential problems as they arise.