Various services offered by development finance companies in UK

The role of Development finance companies has increased in recent time in U.K. They help business corporate companies to achieve their business objectives by financing them. They have an expert team to assess a business and its market as per the Industry standards, before approving them for finance.The development finance companies can finance business units for many projects like Residential development finance, bridging loans, business development finance and property development loans for land purchase. The development finance lenders have a major role of recognizing a business project and its potential and approve the finance loan to fund the business project.Of course, the property development loan of development finance companies is based on the background and financial stability of the business. There is very small level of competition in the area of development finance lenders in U.K, which makes the rise of prices high.The funding is based on the development plan and type of the business unit regarding residential development or property development. It is worth to note that the average current GDV that is being given by lenders is close to 52% for small finance to more than 60% for more high level finance needs.The residential development finance is based on the need for funding to business or private individuals for development of residential structures or homes. Property development loan is based on development of land to build properties, or purchase of land for commercial means. Since the funding by development finance companies is based on background and experience of the business units, a new business corporate may find it difficult to get funding for the loan, without inexperience or necessary project details.In the case of high investment finance, majority of development finance lenders, agree to apply for an interest margin discount for the respective business project. The business companies are approved for loan based on their professional experience and good track record, ability to take risk in new opportunities, ability to respond to clients, and providing business solutions to them when necessary.Regarding property development loan, the rate can change on the basis of experience and business project proposal and the bank base rate of about 5% and confirmed on interest rate. As per experts, it is also possible to arrange a finance loan on cent per cent of property development costs if the business has already ownership of the land. Development finance lenders offer funding on basis of equity, mezzanine, and bank debt.The lenders also offer bridging loans which are short term loans offered on properties bought in U.K. They can be taken for a short term period of 15 days to 2 years. The bridging loans offered by development finance lenders can be for auction purchase, purchasing of residential or commercial property, purchase of agricultural land, buying for under market price, property buying without kitchen and where property is purchased with other collateral property being used. It is worth to note that Bridging loans are also used to raise capital for business.Bridging loans are generally used by self employed and employed people to get funding. The loan lenders give the loan amount after deducting the loan interest, eliminating monthly payments.