Product overview
Business Lending provides a flexible, focused and professionally delivered mezzanine/junior funding package to experienced home builders. We are a relationship driven organisation and whilst the funding is project specific our approach is to create an ongoing partnership with our developer clients. Our business is solely focused on providing homebuilder finance; we do not do anything else. The key board directors and shareholders are fully active in the business on a day to day basis so you will access to an experienced and knowledgeable management team, who critically, are the key decision makers.
We react quickly to product enquiries and applications. If you have a project in need of funding and want to discuss it with us, you can rest assured that you’ll have access to our senior team who can make fast decisions and help you get your project off the ground. > contact us
Lending criteria
Each application is assessed and negotiated on its individual merits but the following general criteria will apply:
Borrower:
- Experienced House Builders
- Demonstrable track record of building and selling similar developments.
Security:
- Secure, quality residential development schemes
- Typically sites of 1-25 units (larger transactions considered)
- Geographically focused in London & South East.
Financial parameters:
- Projects will generally have a Gross Development Value of between £1 million to £15 million
- Loan facilities will range from £300k to £10 million
- Mezzanine or Senior Funding
- All loans are secured by property/site to a maximum 70% GDV
- Maximum project time frame will be 24 months but typically the funding will be extended for 15-18 months
- Competitive pricing to ensure the right risk/reward balance between the project sponsors (the developer) and funders
- Our pricing is IRR focused and assessed, taking account of the project risks & returns.
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Lending strategy
BLG’s lending strategy is simple: we provide a secure source of funds to experienced property developers for their high quality projects. Our underwriting is diligent and thorough whilst being flexible, with each application assessed on its individual merits. Each member of our team is highly experienced in their role, meaning we can work quickly and efficiently to meet developers’ project deadlines.
Our underwriting process involves a detailed analysis of each development project by the BLG team, we make no apology for wanting to fully understand your product, your market and the key risks and opportunities presented in any given development proposal. And we do this at the sharp end, on site with your building team, your architects, engineers, sales and internal management group. We then supplement our in-house analysis with specialist reports analysing construction costs, ground conditions, environmental aspects and critical sales values and project time frames.
We then structure the financing to accommodate the transaction’s features, ensuring that the obligations, rights, responsibilities and performance requirements are clear for each and every party. These obligations are then carefully documented and contracts and security executed and registered.
Transactional monitoring and reporting is a vital aspect of development funding and our surveyor will visit the development at least monthly to review progress, benchmarked against budgetary projections. Our relationship team also visit each site regularly to check progress, constantly updating and re-analysing sales projections and timetables.
We offer each developer access to a senior decision maker and ensure a good level of contact throughout the lending process.
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