There’s nothing more exciting for property developers than bringing a new project to life. However, securing the necessary development finance and navigating the complexities of the industry can be challenging. In this blog, we’ll explore the five most common hurdles that property developers face when it comes to funding, and show you how partnering with LandFund can simplify the process.
The 5 most common hurdles you’ll face when securing finance
From experience and track records to the complexities of regulations, there are quite a few challenges property developers can run into when securing financing for their developments. Below are the top five most common challenges:
1. Limited access to capital and risk perception by lenders:
Developers often struggle to secure the funding they need due to limited access to capital and traditional lenders can perceive certain projects or developers as high risk, especially if you’re new to the industry and don’t have a proven track record.2. Lack of experience and knowledge gaps:
The more experience you have, the more credible your case will be to lenders while less experience suggests less ability to manage complex projects, and this in turn can make lenders wary when it comes to issuing finance.3. Complex regulatory landscape:
Understanding and complying with all legal and regulatory requirements is essential. These requirements can be a challenge to learn but if you don’t, you’ll face lengthy delays and put the success of your project at risk.4. Coordination of multiple parties:
From surveyors and solicitors to valuers and lenders, there are a lot of stakeholders involved when it comes to securing funding. Managing these relationships and ensuring seamless communication is vital, but it can be overwhelming and take up a lot of your valuable time.5. Creating convincing financial proposals:
If you want funding, you’ll need to present robust financial appraisals and proposals that convince lenders of your project’s viability, and that’s a lot easier said than done.These challenges can seem daunting, but how we approach them is what matters most. By understanding the intricacies of development financing obstacles and leveraging proven strategies, developers can tilt the odds in their favour.
How LandFund can help
At LandFund, we offer more than just financial support. In fact, we can help you overcome all of these hurdles to find you the best funding solution for your project and with the right lender. Here’s how LandFund can help:
- Overcoming limited access to capital and risk perception - Our extensive network of industry connections can help developers access capital and secure funding from lenders who are more open to projects of all types, and by facilitating relationships, we’ll help you demonstrate a comprehensive development strategy that can reassure lenders.
- Bridging experience and knowledge gaps - Our team deeply understands the industry and the intricacies of development finance. That means we’ll help you easily navigate any complexities, regardless of your experience.
- Seamless coordination with multiple parties - We’ll be your single point of contact, your go-to for anything and everything. Our team will coordinate with all stakeholders and ensure everyone is always on the same page, drastically reducing the amount of time you spend going between different parties. Plus, we’ll help you navigate valuations as well as the legal side of things to ensure your funding journey is as smooth as possible.
- Create convincing financial proposals - Our people are great, but so is our tech. We leverage the power of data and technology to help you build lender-ready financial appraisals that increase your chances of securing funding, from comparable evidence, to build costs data, all the way down to modelling cash flow statements.
With LandFund, you can successfully overcome these hurdles and unlock the full potential of your development project. Together, we’ll balance the scales in your favour and turn your vision into reality.
Want to find out more?
Our friendly team is on-hand to chat through your requirements, regardless of where you are in your development journey. Whether you’re just starting out or looking to build 50 units, we’ll work with you to find the right deal at the best rates with the most suited lender. 