A broker who finds the time upfront to drill down into the granular detail of a development proposal, surfacing the information that lenders want to know, before they ask, will find the whole application process runs more swiftly and smoothly. This will build trust with a client who may always need funding for their livelihood.
Here are my tips on preparing an application for development finance;
- Don’t be afraid to ask clients difficult or technical questions. Securing the right level of finance in a tight timeframe requires a close relationship with the client and also their project. Brokers are well equipped to ask the most pressing questions, for example, to gauge the client’s level of experience, whether they have third party support in place and how they’ve obtained their development sales values?
- Do your homework and get into the detail. Make sure you have the full picture and understand their development and its financing requirements. Going the extra mile when providing the detail of a development proposal puts you in the best possible position for lenders to approve finance swiftly. Tempting as it is push through an application, being thorough and transparent will prevent unexpected and last minute surprises that so often derail an application, jeopardising all the work that has gone before.
- Identify your client’s unique selling points. It will always pay to identify the individual criteria of a development, and tailor the deal to the lender you’re approaching. Taking the time to highlight observations such as growth potential as well as environmental and geographical factors can really help an application stand out.
Realistically, even in the most robust cases there will always be things we can’t account for, but there are certain details that most lenders will expect to see as a minimum:
- Executive summary providing a brief overview of the proposal including developer details and site address
- Developer experience and background
- Itemised build costs
- Amount required and term of facility
- Gross Development Value
Finding the right balance between due diligence and chasing new business will invariably lead to better outcomes for the whole chain, and generally be supportive of better working relationships, and even most importantly future and repeat business