Property Development Finance Sheffield

Developers are always in a special position when it comes to their financial requirements. It could easily be argued that no other business is as capital intensive. Naturally a developer will need to ensure that the finance is in place before a deal can be safely put together. Our job in this respect is to enable the developer by putting in place a line of credit which will prove adequate to the needs of the proposed project.

Possibly the first thing the finance company will be interested to find out is the status and previous experience of the company. As a matter of course we will always prepare a detailed CV for the company and its directors if this has not already been prepared. Many companies feel that their credentials should speak for themselves. However, when you look at this argument from the perspective of a lender who has no working experience with the company in question, the need is obvious. Hopefully, this can be put together in such a way as will provide sufficient comfort to the lender.

Further to profiling the company the next thing the lender will require is the proposal. It is really important in preparing the proposal that all issues relating to the project have been set out in detail. It is certainly not enough to make assumptions at this stage about any matters relating to timing, and the finer detail of performance. Indeed the way in which the proposal is put together can be crucial in obtaining the finance go-ahead. The lender is likely to take notice of the professionalism shown in preparation of this document.

In finding finance for developers, we use a number of different lender profiles. In some cases we are able to assist in conventional ways. In these cases we are able to source the funding through one lending institution. Frequently we are asked to assist in deals where the criteria take the proposal a long way outside of that acceptable to the institutions. In these cases we often use syndicated arrangements, sometimes working in conjunction with a bank. Occasionally we will also arrange partnership schemes between a financing company and a developer. Most of the hybrid schemes will involve either an element of profit sharing or a fee based on the amount of the total finance exposure. Where there is still insufficient finance available to proceed there is always the possibility of arranging mezzanine finance. This might best be defined as high risk top-up finance.

We pride ourselves on our unconventional and creative approach to finding funds. This has come about through focusing on the needs of our clients. In most cases our clients have originally contacted us because they have failed to find the finance elsewhere. We are also proud to say that our clients invariably adopt our company to advise them in to the future.

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