In business lending it is not uncommon for every party, whether that be a major lender or private equity provider, to have different business interests. There are a number of factors that are considered in lending and what makes it confusing is no two are exactly the same. Most financiers have differing preferences and requirements for Property Development Projects. It could be based on some of the following:
- The location of the intended project
- The type and size of the proposed building – is it a 500 unit high rise or a bespoke complex with 8 high end townhouses?
- Their exposure already to projects that are similar
- Your exposure to the industry and previous lending records