Commercial Property Development Finance & Construction Loans

We start with an introductory conversation to understand firstly the client’s business and then also any projects that might require a Funding Solution. Typically, at this stage we aim to understand the key requirements for property development lending including:

• Do they want to minimize the amount of equity required by the project?
• Do they want no presales development finance to minimize the number of presales?
• Is the cost of funds a priority? For example, you might be able to achieve funds from a traditional bank at a lower cost of funding, but it will require a full 3 years audited financial statements and several other onerous requirements which may not be necessary with private lender development finance.

Once we understand the project and the key requirements, we will then prepare a NO OBLIGATION detailed Funding Proposal.  This detailed document provides a breakdown of the available finance options and the recommended Funding solutions that will satisfy the client’s key requirements.

We then have a detailed discussion talking through all the details in our proposal, to confirm that our proposed solution will provide the best possible outcome for commercial development finance.

Our proposal will include an Authority to Act on behalf of our clients.  When the client is happy to proceed, this authority is signed by the client and this enables BEDROCK Funding to compile a detailed credit submission and to present this to the Funding Market Place.  Our credit submissions are detailed and provide potential funders with sufficient information to make a credit level decision.

We will typically receive credit endorsed terms for development finance from a private lender at this stage. These terms are then discussed with our clients and if need be some of these terms are negotiated.

After negotiating on a set of funding terms that works for the client, the lender will then progress the Funding Application towards a formal approval.  The process leading up to formal approval might include a Project Valuation, a Quantity Surveyors Report and other conditions to be satisfied by the borrower.

After the application has been formally approved, the funder will issue a formal set of loan documents to be executed prior to settlement of the loan.

Once the loan has settled, BEDROCK Funding continue to stay involved and assist in the ongoing management of the facility.  This might include assisting in arranging Quantity Surveyors Progress Reports and attending Project Control Group meetings.