Development & Subdivsions

Developments and Subdivisions 

For very large projects we can arrange funding through a finance company.

Finance companies occupy the space which trading banks see as too risky.

They enable projects, both large and small, to go ahead and develop to a stage where the trading banks can see merit in taking the deal over.

Finance companies provide a great alternative to more conventional funding lines.

    • They are short-term funders – generally 6 months to 2 years maximum.
    • They have higher interest rates and fees as they know they have a limited time frame to earn from a deal.
    • They often rely on a “take-out” to help approve a deal i.e. where there is a defined end-point to a project such as a sale of a property or a refinance by a bank.
    • With a take-out in place there is often much less emphasis on proving income if the equity in the project is sufficient.
      There is the ability to capitalise interest and fees through the project so the costs are all contained within the debt.
    • They work well for “Property Traders” where they are happy for people to turn-over properties regularly for a profit when the banks are not designed to do this.
    • They can help “cleanse” a deal where there could be some credit issues or payment problems which mean a bank is unwilling to take a client on. After 6 months of proven payments with a finance company it is often a lot easier to refinance back into a mainstream bank.

Given a lot of negative press around investing in finance companies, many people are still not willing to deposit their funds with them – but they should never be counted out when it comes to borrowing from them for specific projects.