Property Development Finance & Loans
For over 10 years Choice Loans have specialised in getting loans and finance for our clients. We don't do financial advice, wills, investments, pensions etc., we just do loans.
WHAT IS REQUIRED
Contact us to discuss the requirements for this product.
WHY CHOOSE IT?
Contact us to discuss the suitability of this product for your business.
Typically, you can receive a cash advance loan equivalent to your average monthly turnover. You repay this amount, plus a fee, by agreeing to give a small percentage (usually 10-15%) of all card receipts to the advance provider until the finance is paid off and the balance is cleared. This is done automatically via the card terminal with each transaction, and you don't have to change your card processor. Unlike traditional bank loans, there are no time constraints on this. In quieter times when less money is coming through your card terminal, you'll pay less money back. In busier times when more money is coming through, you'll pay more money back.
FAQs
How quickly can I get a decision in principle?
Once we know the details of your project a decision can be forthcoming within 24 hours.
How soon after that can i get a formal offer letter?
Again, within 24-48 hours of receiving all the information from you.
What is the maximum you can borrow?
Approx 75% of purchase cost, up to 100% of construction to a maximum 65% GDV.
How long can I have Development Finance for?
Usually no more that 12-18 months but it depends on the project.
Do I have to service interest monthly or is it rolled up?
It is almost always rolled up to the end of the projection order to protect your cash flow while the development is ongoing.
Do I need to have experience in property development in order to get finance?
In all likelihood yes. Most lenders are reluctant to lend if it’s your first project but if you can show relevant skills in your team (e.g. Quantitiy Surveyors, Architects, Project managers etc.) then you will probably qualify.
Do I need to have Planning Permission before I get Development Finance?
Yes, in most cases you will need at least Outline Planning permission before borrowing unless you are a very experienced developer and it is a strong project.
What will the finance cost?
It is difficult to out a set rate on property finance. that’s where we, the broker, come in. By having access to many different lenses we can seek to find you the best rate from the most reputable lender. Typically these rates will start at BBR + 4.5%
What are the fees to arrange the finance?
If you decide to arrange your finance through us, you will be charged a broker fee of 0.5-1%. Additionally it is customary in the market that you pay the lender’s legal and valuation fees. The lender may also charge an arrangement fee but this varies.
Choice Loans is a broker, not a lender. We will connect you with a lender suitable for your needs or, if appropriate, a specialist broker. We do not charge you an upfront fee but, if your application is successful, a broker commission may be charged.
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