The Advantages of Private Lenders for Property Development Finance

The Advantages of Private Lenders for Property Development Finance

Property development is a complex and multifaceted undertaking that requires significant financial resources. While conventional bank loans are a common choice for developers, the rise of private lenders has presented a compelling alternative for astute property developers. Private lenders offer a unique combination of flexibility, expertise, and personalised service that can be pivotal in navigating the complexities of property development financing.

In this article, we will delve into the numerous advantages of opting for a private lender for your property development project.

Benefits of Private Lenders

Private lenders offer a distinct set of advantages that can be particularly valuable for property developers seeking a more tailored and flexible financing solution.

Speedy Approval Process

Private lenders typically operate outside the traditional banking framework, enabling them to expedite the approval process. This can be crucial for property developers seeking quick access to funds to capitalise on time-sensitive opportunities or meet project deadlines.

Flexible Terms and Conditions

Private lenders are often willing to structure financing solutions that align with the specific needs and circumstances of individual property development projects. This flexibility can extend to loan amounts, repayment schedules, and collateral requirements.

Asset-Centric Minimal Red Tape

Private lenders primarily focus on the underlying asset value of the property development project, placing less emphasis on personal credit histories or complex financial documentation. This approach can be particularly beneficial for developers with limited credit histories or those with more unconventional project structures.

Relationship-Oriented Financing

Private lenders often cultivate close relationships with their borrowers, providing ongoing support and guidance throughout the development process. This personalised approach can foster a sense of trust and collaboration, contributing to the success of the project.

Creativity in Financing

Private lenders are often more willing to consider innovative financing solutions that may not fit the rigid criteria of traditional banks. This creativity can be particularly valuable for complex or unconventional property development projects.

Confidentiality and Privacy

Private lenders generally maintain a higher degree of confidentiality and privacy compared to traditional banks. This can be particularly important for property developers who wish to protect sensitive information or maintain a low public profile.

Additional Benefits

In addition to the benefits listed above, private lenders also offer a number of other advantages, including:

  • Less Paperwork: Private lenders typically require less paperwork than traditional banks. This can be a major advantage for borrowers who are looking to close a deal quickly.
  • More Control: Private lenders often give borrowers more control over the terms of their loans. This can be beneficial for borrowers who have specific needs or requirements.
  • Access to Funds When Banks Say No: Private lenders may be willing to finance projects that traditional banks have rejected. This can be a valuable option for borrowers who have been turned down by other lenders.

Why Choose Assured Management?

As a flexible non-bank finance, we are not afraid to ‘get our boots in the dirt’ - Our ability to work directly on a personalised level with developers is what sets us apart from competitors.

Direct access to the people who are approving and monitoring your loans provides assurance to you as the borrower. This creates a proactive line of communication that puts us in a good position to navigate any issues should our involvement become necessary.

Unlike traditional financial institutions we have a dynamic and commercial mindset with the flexibility and capacity to problem solve and work closely with our developers to reach the shared objective; to finish projects in a timely and cost-effective manner.

We're mainly funding land subdivisions, housing estates, townhouse developmentsinvestment properties and unit blocks, with some commercial and industrial developments.

Contact us for advice on your development finance requirements.

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