Securing funding for business transitions

Large-scale property projects require significant investment, and development finance is often the key to turning a vision into reality. Whether you’re planning a new build, a conversion, or a major refurbishment, securing the right funding can make all the difference.

With traditional lenders tightening their requirements, developers are increasingly turning to alternative finance options, including bridging loans and private funding. In this blog, we explore how to secure development finance, what lenders look for, and tips for a smooth application process.

This type of finance is essential for property developers, investors, and businesses looking to undertake large-scale projects without tying up their capital.

5 Tips to secure development finance

1. Have a Strong Business Plan

Lenders want to see a clear and detailed business plan. This should include:

• A full cost breakdown – land purchase, build costs, professional fees, and contingency funds.
• Projected Gross Development Value (GDV) – the estimated market value upon project completion.
• Timelines and risk assessment – including possible delays and mitigation strategies.

A well-structured business plan improves lender confidence and increases your chances of securing funding.

2. Secure Planning Permission

Most lenders require approved planning permission before agreeing to development finance. Without it, funding options may be limited or come with higher interest rates.

If planning is not yet secured, a bridging loan might be an alternative to purchase land while awaiting approval

3. Prepare a Clear Exit Strategy

Lenders want to know how the loan will be repaid once the project is complete. Common exit strategies include:

• Selling the developed property to repay the loan.
• Refinancing onto a long-term commercial mortgage and renting out the units.

Having a realistic and well-defined exit plan reassures lenders and makes financing more accessible

4. Consider Alternative Finance Options

If traditional banks decline funding, alternative finance solutions may be available, such as:

• Private lenders – offering faster approvals and more flexible terms.
• Bridging loans – short-term funding to cover initial costs before long-term financing is arranged.
• Mezzanine finance – a hybrid loan that combines debt and equity funding.

5. Work with a Specialist Broker

Navigating development finance can be complex, and working with a commercial finance broker can help. Brokers:

• Have access to a wide range of lenders and funding solutions.
• Understand lender requirements and help structure applications effectively.
• Negotiate competitive loan terms on your behalf.

A broker can significantly increase approval chances and reduce delays in securing finance