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UK Finance launches guide to development finance for SME housebuilders

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  • 05/10/2018
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UK Finance launches guide to development finance for SME housebuilders
UK Finance has joined forces with the Federation of Master Builders (FMB) to provide guidance on the development finance process to small homebuilders.

 

The guide from the trade bodies provides advice on how smaller firms should present their project to lenders to improve their chances of success, as well as the alternative options available if an application for finance is turned down.

Housebuilders are also given information on how to make the most of the range of finance options available including challenger banks, private equity, crowd funding, finance brokers and government-supported funds.

The guide is available on both the FMB and UK Finance websites.

 

Find right finance

Stephen Pegge, managing director of commercial finance at UK Finance, said: “The range of finance options available to SME housebuilders is now greater than ever, from traditional high street lenders to crowd funding and government-supported schemes.

“But too often SMEs are deterred from applying for finance because they are unsure about where to look or whether they’ll be successful.

“This guide is designed to help smaller housebuilders navigate this diverse landscape and find the right form of finance for them.

“Through close cooperation between UK Finance, the Federation of Master Builders and the government, we are determined to help SME builders grow their business and build the homes the country needs.”

Brian Berry, chief executive of the FMB, added: “Over the past decade, for many SME house builders, development finance has been difficult to access.

“Although there have been improvements in this picture in recent years, nearly half of SME house builders still view lack of access to finance as a major constraint on their ability to build new homes.

“We will continue to work with the government and UK Finance to identify ways to improve this situation by enabling lenders to lend more to this sector.

“However, it is also the case that the process of obtaining development finance can be complex and difficult to navigate, especially for new entrants or those without recent experience of the market.”

 

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