Development

Equity Finance & Senior Debt Funding (100% Finance)

Senior Debt is secured finance that is available to businesses and is secured against either existing assets (commercial or residential) or against the project itself. What this means is that this form of financing will become the first tier of liability (the Senior). This is used in conjunction Equity Finance which comes from our network of High-Net-Worth Individuals, Investors and Equity Lenders. This part of the deal structure will bring investment monies into the deal, ensuring that your business holds the necessary capital required to make up the shortfall of your deal in return for a profit split based on the equity injection.

As this will enable you to obtain the majority of your 100% finance package, it is an excellent option for growing your business and getting ahead of competitors.

This form of finance will be secured for a specific time but also with a set interest rate with payments being made to a certain schedule. This is a beneficial form of lending if you are confident that you will be able to meet all repayments and that the future of your business is secure as this debt will have to be repaid first should your business cease trading. In addition to this, it can be used to raise larger amounts of money depending on your specific needs.

Institutional funding line for development projects

Institutional funding is obtained from a company whereby they invest for other people. Also known as mutual funds and pensions, it provides companies with the ability to access the funding they require for development projects. What this means is that when you obtain this kind of funding, you will be using funding that comes from an institutional investor whereby the money is invested on behalf of their customer.

They are always looking for investment opportunities so this is the reason why this kind of funding is a suitable option for development projects. Furthermore, it also provides the opportunity to access large amounts of investment that are set with varying interest rates as well as the period over which the funding is paid back. This kind of funding also comes with fewer regulatory requirements which makes it easier to access and that also speeds up the process at the same time.

The funding comes in the form of shares which they will own during the funding although they are known for not purchasing a high volume of company ownership due to the potential to violate securities. Institutional funding and investors have the ability to offer more than average investors and that makes it the perfect form of funding for development projects.

100% Development Finance – Joint Venture/Profit share

100% Development Finance is also known as Joint Venture development finance, as it is a form of finance that can be used to develop property without the need to rely on your own funds.

The lender will provide the entire amount of money that you need in order to complete your project, with profits being shared once the sale takes place. In general, this form of financing will see the profits split on a 50/50 basis.

This form of financing is only available by unlocking profits in your development and is ideal for finding the money you need to take your development from site purchase right through to completion. Ensuring all of the finance you require can be obtained from one lender helps to save time and money while it doesn’t tie up your own funds and enables you to take on additional projects.

In addition to this, there is no need to service the debt at any stage as all interest can be taken up to the end of the project. This kind of funding is only available in instances where planning permission has been granted and the project will need to have a high gross development value (which usually has to be in excess of £1 million). In many instances, a margin of 25% will be required on the development project.