Property Developers: Find Out How Funding Ready You Are
Over the years, I’ve found that property developers usually have one thing in common. When they need to carry out a project they need funding.
And of course, a lack of funding can cause delays, hold-ups and ultimately lost opportunities. Hardly an ideal scenario for any developer to experience.
As a consequence, obtaining funding is an important part of the process for any development project. And in my experience, and without wishing to state the obvious, when a developer needs funding….he really needs funding! And often quickly!
And so, to help developers looking to access finance, we’ve created an online tool called the Property Developers Fundability Scorecard. Essentially, by going online and answering a series of questions, we are able to provide you with an indication of how FUNDING READY you are when it comes to your next development project.
Introducing the Property Developers Fundability Scorecard:
In summary, the Property Developers Fundability Scorecard is an online tool we’ve created to give you an analysis of how FUNDING READY you are when it comes to your next project.
We do this by benchmarking your development project against five key metrics that all lenders take into account when analysing your potential funding requirements.
If you’d like to take the test, you can access the online scorecard by going here:
- Answer 30 YES/NO questions
- It takes less than 5 minutes
- We send you a detailed Fundability Scorecard Report
The personalised Scorecard Report you receive, will provide you with an individual score in each of five strategically important categories, whilst also giving you with an overall fundability score.
In addition, the Scorecard Report gives you a comprehensive analysis of what the results mean for you. The report provides you with important advice, help and insights as you think about funding for your next project.
As I’ve already mentioned, there are five categories that all lenders take into account when considering a funding application and knowing what they are and how you score in each one means you will be better prepared when you are at the point of needing to make a funding application.
These five strategically important categories are as follows:
Your Development Experience:
Previous development experience is important and something that many lenders require in order to assist with funding. However, the good news is there are now several specialist lenders who can provide funding for first time developers. So, it’s important for you to know that just because you may have a low score in this category doesn’t mean you can’t get finance.
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.
You Time Availability:
Are you spending too much time doing ‘functional’ tasks rather than carrying out the important ‘vital’ tasks that will get the deal done? This category is closely linked to the Professional Team category mentioned above. There will be tasks you can delegate to your team. There may be other tasks you can automate, leaving you free to concentrate on driving your project forward.
Your Next 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? These, amongst others are important questions, the answers to which will help determine if your new project is ready to fund.
Your Access to Funding:
Funding is of course crucial to getting your development underway, so what is your access to funding? Do you have a strong relationship with your existing lender? 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? Finding out which lender is best suited to your specific requirements and knowing how to access them is crucial.
Your Scorecard Report provides you with a score in each of these five important categories, meaning you can quickly assess and benchmark the fundability of your next project.
You will be able to identify areas where you scored higher, whilst also identifying areas of potential weakness that need to be addressed. For instance, you may have scored well in the “Your Next Project” category – you have obtained planning permission, you have agreed a deal with the vendor, and you are ready to start work.
However, you may have scored less well in the “Your Professional Team” category – for instance you don’t have a good commercial solicitor appointed, so you know this is an area you need to address before you start applying for finance.
The Scorecard Report will help you identify these and other areas to consider as you prepare to apply for funding.
Would you like to find out your Fundability Score and benchmark how FUNDING READY you are when it comes to your next development project?
Then go here and take the test:
And if you want to talk to an expert about development finance, then simply give us a call on 020 8949 2122 or email us at email@example.com