Are you a property developer? Here’s how to find out how funding ready you are

Funding Track’s unique online property developer funding scorecard will help you assess how funding-ready you are

While it might seem obvious, when you need to raise finance for your next development – you really, really, really need funding – and quickly.

Taking too long to obtain funding could undermine any potential opportunity you have identified.

Funding is a key consideration for property developers. A survey showed 54% of small house builders say accessing finance is a major barrier to building more homes.

To help, we’ve created a unique online tool, called the Property Developer’s Fundability Scorecard. It helps speed up the process of accessing finance, whilst also giving you crucial insights into exactly how ‘funding-ready’ you are for your next development project.

With 30 questions requiring just a yes or no answer, it takes less than 10 minutes to complete. It will enable a property developer to benchmark their project against five key metrics that lenders take into account when they analyse your funding needs.

Once you’ve completed the questionnaire, you’ll receive a personalised report giving you an individual score in each of the five strategically important categories, together with an overall fundability score.

The report also provides you with important advice, tips and insights as you think about funding for your next project.

Here are the five categories that all lenders consider when analysing a funding application from a property developer. They help a lender benchmark how ‘funding ready’ you are and knowing what they are and how you score in each one means you can be better prepared for a funding application.

Your property developer experience

Previous development experience is important and something that many lenders require. However, the good news is there are now several specialist lenders who can provide funding for first time developers.

So a lower score in this category doesn’t mean you can’t get finance, but it will just flag up that you may need specialist funding.

Your professional team

A strong professional team is vital and can be the difference between success and failure for any project. Do you have the right people in the right positions to ensure the success of your project?

Your professional team must include a good commercial solicitor, an architect with a strong track record and an experienced finance broker who can help you through the myriad of funding options available to you.

Your time

Are you spending too much time on less important tasks rather than the vital tasks that will get the deal done? How you manage your time, is closely linked to how good your professional team is.

There will be tasks you can delegate to your team. Other tasks you could automate, leaving you free to concentrate on driving your project.

Your next property developer project

Do you have a new project in mind? Are you ready to start work on it? Where is it? What is it? Does the property have the necessary permissions in place? Have you analysed all the numbers?

Is the deal profitable? Lenders will want to know key details about your new project so they can decide if it is ready to fund.

Your access to funding

Good access to funding is of course crucial. Do you have a strong relationship with your existing lender and will they provide the funding you need for your new project? There are of course many alternative lenders offering property development finance.

Do you know who they are? And do you know how to access them? It’s important you know which lender is best for your situation and how to access them.

So what exactly does the scorecard reveal?

The scorecard reveals valuable information that will help you understand how funding-ready you are. Know where you stand on the five key areas that lenders consider. Then you can identify where you are strong and where you need to focus your attention.

It will highlight any areas you need to address before you start applying for finance. For instance, do you need to improve your team by hiring a good commercial solicitor?

Do you need to start thinking about alternative lenders to your own bank? Or perhaps you need to take some time to ‘drill down’ on the numbers for your new project.

Our scorecard report will help you answer these questions. It will also pinpoint other areas to consider before applying for funding. Or it might just show that you have everything in hand and are good to go.

Check your fundability on the Funding Track Scorecard

Call us on 020 3857 3030 or email enquiries@fundingtrack.com if you want to talk to an expert about development finance.