Whilst you may be able to get development finance from your regular bank, it’s more than likely that you’ll be unable to do so.
If your bank is unwilling to take the risk and help finance your project, don’t worry, there are some other options out there for you.
Commercial development loan
A commercial development loan is what you need to look for, and there are specialist companies who can help with up to 100% of the build cost, in some cases regardless of your credit rating.
This will normally be a short-term loan which covers the development phase of your project, meaning you should be able to repay it once you finish the build and get onto selling your development.
You can apply for this kind of funding whether you’re an individual developer, or even a company or development group.
A bridging loan is a short-term loan which will help you fund your development in times of cash shortage.
As your ultimate aim with a commercial development is to finish it and have someone else pay for it, this kind of loan can see you through until such time as the money comes in from the finished build.
It’s so called because it ‘bridges’ the gap in your finances between the outlay you need and the income you’ll eventually get, allowing you to finish the work without being halted by a lack of finances.
This kind of loan can also come in very handy if you find yourself without enough money to solve a problem arising during the development, which your current finances haven’t accounted for.