In the fast-paced real estate era, opportunity moves at a rapid pace, and swift action is crucial for successful land development. Conventional funding can also involve long approval periods and difficult guidelines that can result in developers missing out on profitable opportunities. It is here that bridging finance becomes a robust and adaptable option to consider, a product on hand to bridge the gap between current cashflow demands and securing further funding and liquidating assets for further investment.
By enabling access to funding fast, they allow developers to buy land, cover initial development costs, and keep things moving to help get developers to where they want to be in the land development process quicker.
High Speed and Accessibility
The thing about bridging loans that makes them particularly useful is how fast and easily you can get a bridging loan. Bridging loans can generally be secured in days or weeks, while regular loans can be approved in months’ time. This fast-track route is important for developers who need to move quickly on time-sensitive land acquisitions, such as when a property comes up at auction.
The flexibility of 100 LTV bridging loans means that developers can fully capitalize on new opportunities and leave no stone unturned when securing a competitive edge. In these situations, bridging finance isn’t just useful — it’s essential.
Solutions to Open Projects
Bridging Loans are highly adaptable and are perfectly suited to all land development phases. These loans can be customized towards the specific needs of a project, from the purchase of raw land to pre-construction, or even to getting capital to cover costs of initial site preparation while waiting for full development finance.
This flexibility also makes the funds available to developers exactly when they are needed, without being subject to the strict draw-down schedules commonly associated with traditional construction loans. Customizable borrowing periods and repayment plans add even greater flexibility.
Overcoming Planning and Permitting Hurdles
More often than not, when you’re developing a piece of land, there is a very complicated process for planning and permitting, and sometimes the schedule will get derailed with the hoops you have to jump through. During the good times, adding a bridging loan could be the difference between standing still and keeping the momentum.
A loan bridging may be used by a developer to fund the purchase of a site well before the full grant of planning permission, but at which point they are sure that very favorable purchase terms can be locked down. This use of bridging finance as a strategic tool ensures that the development timetable can be actively managed.
Strategic Cash Flow Management
Efficient management of cash flows is essential for every development project. Crossover facilities enable developers to have positive cash flow through interim financing that keeps them from liquidating other assets or spending on ongoing operations.
Developers might have the flexibility to take out interest to the end of the loan period, which means they pay the borrowing costs out of the sale proceeds or refinance rather than make interest payments each month. This method, while not ideal or without issues, gives developers some economic relief so that they can work on moving forward with the project.
Enabling Growth and Expanding Portfolios
Bridging finance acts as an accelerator for driven developers. It offers developers the required funds to purchase new plots and launch projects, through which they can increase their portfolio or execute more projects. This tactic of short-term financing can, over time, build more profit and a potentially stronger position in the market.
It enables developers to continue to capture larger, more complex opportunities, expanding from smaller and single-project opportunities to a bigger and diversified development pipeline.
Bridging finance is a powerful and effective method for developers. 100 LTV bridging loans enable developers to take advantage of opportunities, realize their high land development aspirations in a short space of time, and ensure profitable and successful ventures by making access to capital a less costly affair.
