If you’re a property developer or planning your first project, you already know that the success of your development hinges on more than strong design and a good contractor.
The way your project is funded can make or break profitability, timelines, and even your ability to take on future schemes.
As commercial finance brokers, we work with developers at every stage: from first-time builders converting a pair of semis, to established firms taking forward multi-unit sites.
One thing is always true: the right funding structure matters just as much as the funding itself.
Here’s what we want all our clients to know about navigating today’s development finance landscape.
1. Development Finance has evolved, and lenders are more flexible than ever
Gone are the days when only traditional banks would lend to property developers. Today the market includes:
- Challenger banks
- Specialist development lenders
- Private debt funds
- Family offices
- Joint-venture funders
This increased competition means lenders are more willing to structure deals creatively, especially for solid projects with strong exit strategies.
That said, every lender has a very different appetite. Part of my job is identifying who will support the project as it is, not how we’d like it to be packaged.
2. Your leverage options are better than you think
Clients often assume they’ll need a large chunk of their own capital to get started. In many cases, that’s not true.
Depending on the project and experience, lenders can offer:
- Up to 70% of land purchase
- 100% of build costs
- Up to 90%+ total development costs (TDC)
- Stretch senior or mezzanine finance to reduce your equity input even further
For experienced developers, we can sometimes secure JV funding that covers nearly all costs, where you contribute your expertise instead of capital.
The key is structuring the deal in a way that supports cash flow throughout the build, not just up front.
3. Lenders care less about credit scores and more about the project
Many developers worry unnecessarily about credit scores or past business issues.
While these things matter, lenders place far more weight on:
- The strength of the GDV
- The contractor’s track record
- The build schedule
- Costings and contingency
- Planning status and exit strategy
If the numbers are right and the plan is robust, there’s nearly always a funding solution.
4. Good preparation can save you weeks (and thousands)
Before we even approach lenders, having the following ready massively improves speed and rates:
- Detailed appraisal
- Full cost plan
- Planning documentation
- Drawings and schedules
- CVs or experience track record
- Exit strategy (sales or refinance)
- Updated company financials
When a lender receives a well-prepared pack, confidence increases and pricing can improve.
5. Why working with a broker gives you an edge
You could go directly to a lender, but you’ll only see the products they offer. As brokers, we:
- Access the whole market, including lenders who only work through brokers
- Know which lenders are actively lending today
- Understand the subtle differences in how each lender views risk, valuations and leverage
- Package and negotiate your deal for you
- Save you time so you can focus on the project, not the paperwork
Our goal is simple: secure you the most competitive terms available while keeping cash flow tight and the project moving.
If you’re planning a new development, let’s talk early
Even if you’re six months from breaking ground, early conversations can make all the difference. We can:
- Stress-test the numbers
- Explore multiple funding structures
- Improve leverage
- Identify cost or timing risks early
- Get you lender-ready before you need the funds
I’m always happy to have an initial chat, no commitment required.
Need Development Finance for your next project?
Whether you’re purchasing a site, refinancing, or ready to go out to tender, we can help you secure the right funding structure for your scheme.
