What comes to mind when you hear about development finance? For many reasons it is a better known source of funding in some sectors over others, but for anyone with an idea to develop an area of their business to provide a future income source, it could be the best decision you ever make. Development Finance can be used in many ways, from building or renovating property, to buying land or property to develop. It is commonly used by landlords or investors to build their property portfolio.
Development finance has helped entrepreneurial minded individuals discover or rediscover a passion for property development. Many people have used this form of financing to develop highly profitable businesses, by working with the right broker and focusing on the right kind of projects. Applying for this type of finance can often be difficult, with complex terms and conditions, as well as wide ranging interest rates, and in many cases a long list of reasons why you could be excluded from submitting an application.
However, some Development Finance Lenders have made the process of applying for funding much easier. As long as you have the correct supporting documentation and meet the stated requirements, applying for development finance may be a walk in the park, especially with the support of an experienced broker. It’s essential that you have a clear idea of what you want to achieve with the finance, this will make it easier for a lender to make a decision on your application. So, what are the sectors that development finance works particularly well for?
Sectors That Often Thrive Through Development Finance
Here are a number of sectors which can make use of development finance;
- Property Renovation: Many landowners have unused and dilapidated buildings on their properties, such as barns which have been left to rot or become a space for storing unused items. Development Finance can be used to renovate these buildings and bring them back up to standard, you may even want to consider turning that long forgotten building into a new habitable home.
- Residential Property Construction or Renovation: If you own a piece of land in a habitable location, you might want to consider building a residential property from scratch. This could be bungalows, flats or houses, but built with commercial revenue in mind. You may also want to look at financing which extends a property or brings up to standard some of the out of date elements of a building. This funding could help you turn this space into a regular and profitable income.
- Mortgage Based Finance Project: This is where the development finance is raised to enable you to build or extend a home for yourself. It is much more in line with a standard mortgage although the terms may differ to what you would normally expect. This would not fall under the remit of a commercial finance broker, but if you’re interested would be worth a conversation with a financial advisor.
- Commercial Property Development: Development Finance can be used to develop commercial properties such as offices, shops and factories. With many businesses on the hunt for suitable premises, it’s unlikely they would stay empty for long.
