As a property developer, cash flow can sometimes restrict your options when it comes to starting your next project. Money tends to be tied up in the current project up until the point at which all properties have been sold. Once this is completed and a profit made, the funds generated can be used to settle any outstanding debts and then provide the necessary finance for the next project.
The downside of this process is that developers are under pressure to sell the properties quickly and move on to their next project as soon as possible. Therefore, they are forced to accept a lower offer than necessary, simply to boost cash flow and release funds so the next project can begin.
If you find yourself in this situation, there is a solution known as development exit finance. This type of lending is available to property developers, enabling them to wait for the right buyer, at the right price whilst ensuring they do not miss out on the next property opportunity. They can simply release some of the equity on the properties currently up for sale and use the funds to immediately start the new project.
For help on any property finance matter please call our experience team on 01993 706403 or e-mail enquiries@ngifinance.co.uk.