Property Development Finance
Development Finance Construction Loans
True professional funding solutions for commercial and residential development
Development finance for retail industrial and commercial offices, or for residential property, is not as straightforward as it sounds. It requires guidance from finance experts and specialist bankers you can access through Finmore Capital. Our 20 years’ expertise in the industry keeps our clients and developers with up-to-date bank industry information, avoiding any unnecessary hiccups while ensuring your project’s success. Fail to plan and you will plan to fail. Before engaging or entering into a development, we will consult with you to discuss your project, assess its feasibility, and put a plan of action in place to ensure the right funding structure, timeline, and financial strategy are established from the very beginning.
What You Have Access To
- Experts experienced in facilitating and structuring development finance
- Competitive interest rates and fees
- Innovative funding structures
- Dedicated business bankers
- Funding up to $50mil
- Fund 70% to 80% of the final cost of the project
- Fund soft costs (marketing /real estate costs etc.)
Pre-Sales
For larger projects, most lenders require a certain level of pre-sales to minimise their risk. The percentage of pre-sold properties will vary from client to client and project by project, however, you may be required to pre-sell approximately 50%. Obviously, this is a way for lenders to minimise their risk. We will negotiate with the lenders on your behalf taking into account your specific circumstances and requirements.
Preparing For Your Development Funding
We will assist you in structuring a professional plan and funding submission to the lenders. This will ensure the best possible likelihood of approval, helping you avoid unnecessary frustrations while demonstrating the viability of your project. Be prepared to supply detailed personal information along with up-to-date financials and tax returns. While you may have been exposed to developments in the past, each project is assessed separately. That said, developers with proven records generally find the process smoother.
It is recommended to put a plan together in the initial phase which includes
- Site Description
- Zoning
- Design Concept
- Resumés for your property manager and major consultants
- Costings
- Feasibility Study.
- Projected sales figures
- Net result
- Timelines
A detailed feasibility study will show that you have allowed for all contingencies while reinforcing your capabilities with the lenders.
Reporting to BANKS with Project Updates
The bank will keep a close eye on all stages and control its progress payments. Some points that are often required prior to approving the funding include:
- A fixed priced building contract
- Detailed construction costings from your builder or a quantity surveyor’s report
- Evidence of pre-sales in the form of deposits – required to be held in trust. These deposits are generally cash to the value of 10 per cent of the purchase price
As the project progresses you will need to keep the lender updated with:
- Progress claims made by the builder
- Reports from your project manager
- Cash flows and revised financial projections
- Any delays in the project
- Any changes to the feasibility study
- Any sales that may have occurred
Once the project is nearing its completion, lenders will initiate a valuation request by sending their own valuers or request certification from a project manager or quantity surveyor.
Get A Free Consulation Start Your Finance Journey Today
Ready to take the next step? Get pre-qualified with Finmore Capital in just minutes and unlock fast, flexible finance options for vehicles, equipment, or property. Our expert team is here to help you secure the right solution — so you can focus on growing your business with confidence.