Last Updated on Apr 20, 2020 by James W

More often, we don’t always get to have what we want. This situation is not something new when it comes to finances and property developers always fall victim to such circumstances.

Of course sometimes it gets a bit difficult to get your finances right just at the right time to commence the development of your property. Sometimes you will get to face many challenges when applying for development finances.

Something that will only contribute to the delaying of your application. But if you already know about the challenges that you might face and you’ve already known how you can avoid them, you can be able to save yourself some money, time and stress.

Anyway, with that aside, whether you are doing this for the first time or not, the following tips might be able to help you out.

  1. Due diligence

Of course when you want to borrow money from someone, he or she may want to know how or what you are going to use it on. When it comes to development finances, the same applies.

Your lender will want to know if you have seen any problems that might arise and whether it has a potential of stopping or slowing down your project.

In other words, the lender will just want to know if you already have a plan in place before you can get the finance.

With a great plan, your application may go through much faster as the lender is assured no surprises will come up later hence they are most likely going to agree to give you the loan. Just make sure your due diligence is correct.

  1. Knowing your figure

As usual, banks or any other lending organizations are always good with numbers. This might be a tiny thing but can lead to your application being rejected.

You need to convince these people that you are aware of what is happening. You must ensure that your figures are also well worked out and they are also realistic.

Some of the very important things that you need to show that you clearly understand includes, the cost of the whole project among other things. This should also include the materials and the labor fees.

In short, you are supposed to be having a cost estimation which is very much detailed. Also, adding a realistic estimated price of the property when it is finished can be a plus.

  1. 25% deposit

This concept is usually seen to be straight forward. Many lenders will always want you to have not less than 25% of what the project will cost as your deposit before they consider lending you.

Some of them will even go as low as 20% however, this rarely happens, mostly if you have no experience in development projects.

Anyway, the bottom line is if you can pay a large percentage of what the project will cost in total as the deposit, it will become easier for you to secure the rest of the finance.

  1. Experienced contractors

Well, it is only natural that if you want your project to be successful, you will need to work an experienced contractor.

If you also think you will have some problems when trying to secure some finance for your project just because you are inexperienced, you should consider looking for an experienced person to help you out.

This can be done if you decide to take this project together as a joint venture. Both of you will have a stake in this project and share the profits.

This is a great tip you can use to secure the loan and complete the project even if it means sacrificing a portion of your profits.

  1. Offering extra security

Most of these development finance i.e. bridging loans will always agree to let you secure finances against multiple properties.

If you are having problems securing enough finances, you should also consider other assets that you can be able to leverage.

Most of the lenders might allow you to use either your commercial property or your home as an additional security for the loan. This is what can make you secure much finance or even have great interest rates.

Follow this link to get more tips


As said before, sometimes you may have a project that you want to complete but because you are short of finance, it becomes a bit difficult to continue with it.

This is why we opt to go for loans to secure development finances to finish them up. Use the tips above to quickly secure some finance and finish what you started.

Visit and get some help with your development finance.

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Use Land Trusts and Real Estate to Make Money

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