Development Loans

3



Development Loans - How Can Calmez Help?


How often have you found it necessary to interrupt or stop production on site due to cashflow difficulties

How often have you received contract and cashflow projections created by contractor-orientated professionals, who do not fully understand the finer points of developer funding, but are nevertheless acting for your developer loans provider?

How often have you been tied into such risky (that is, your risk) arrangements with your bank or developer loans provider?

Development loans are different to a straight construction loan.  It is essential to understand, cater for, and control the interaction between development loans and the cashflow implications of a sales-lead operation.

The difficulties in this are increased by having to deal with the consequences of:


small-developer-funding Reliance on, and disruption created by changeable weather
small-developer-funding knock on effect of delays for any reason, and at any stage of construction, cascading on through the project which is difficult to resolve unless additional development loans peak borrowing requirement to cater for this income slippage has already been provided
small-developer-funding Inflexibility through a fixed price JCT Contract with an external contractor
small-developer-funding Matching overall development cost to sales income and a development loans availability at that time
small-developer-funding Actual sales rates and related income not matching expectations
small-developer-funding Miss-match of drawdowns of the development loans compared with stage costs allocated within agreements with developer funding advisers

CALMEZ have considerable developer funding experience within our management team and understand how the provision of development loans work or fail.

We like to work with Developers on the project viability planning and development loan aspects with related potential difficulties being addressed prior to agreeing to proceed, thereby providing additional protection to you, the developer.

Where feasible, we will join with you in exploring and agreeing solutions to your developer funding requirements, Once we have worked together successfully we may be able to provide additional gearing facilities for your developer loans requirement to enable you to expand your business.


development-loans-contact-no For more information on development loans, contact us on 020 8959 3626 or by email here.