Insider tips to boost development finance applications – Davies

This is to help prospective developers in the face of changing markets, Davies’ advice centres on managing applications during the cost-of-living crisis, rising inflation, and increasing finance costs.

1. Preparation is key
It is essential for lenders to have all the information required to carry out their due diligence. It is important to provide details on the proposed development, the borrower, their strategy, past projects and wider portfolio at the initial stage to fully understand the development.

2. Research lenders
In addition to taking the time to submit a complete application, it is essential to research the lenders’ criteria. Lenders will have their own requirements such as loan term and size limitations and developer experience. Sufficient research can ensure projects better align with lending partners.

3. Be clear on credit
There are instances where minor or very old credit or media issues can affect an application if not addressed at the initial stages. Lenders carry out extensive due diligence and it is important to be up front with them to save time.

4. Overestimate time required
Being sufficiently prepared to provide speedy responses can facilitate the application process. However, it is important to add more time than expected as lenders work to different time schedules. It is worth checking before submitting any applications.

5. Consider extending loan terms
It is best to be cautious regarding completion dates as a number of instances can push this back. Labour or material supplies, slow sales, or bad weather can all affect build times so it is important to factor in disruptions to protect against further issues.