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Not just funding, but the right funding

What is the appetite for funding new developments at the moment?

We asked our development finance expert Derek Bradstock from BBA Finance for his latest overview.

“Whatever is going on in the market, there are always funders who are willing to fund. It’s just a case of knowing where to look, and that’s where we come in. At BBA Finance, our job involves assessing the market, determining the requirements of a particular development, and locating a funding partner that will meet those requirements.

“Despite uncertainties in any market, there are plenty of quality funding lines very much open for business holding cash they are keen to find a home for. Their lending policies and overall appetite may be more cautious but they are all actively seeking and fighting for that quality business. Our role is to work closely with you and potential funders to portray you as that quality client and secure a competitive funding line”

Considering the details

“Historically, the challenge for developers and house builders – whose speciality is building rather than funding – is that the funder offerings can often appear very similar.

“However, the devil is in the detail. The minutia of the terms offered and a particular funder’s ability to perform is what sets them apart, and that’s really where we come into our own.

“We focus on finding the funders that will make the whole journey smooth for a client. Development projects can be complex; lead times to discharge planning conditions and satisfy a funders onboarding criteria can take many months, and once on site build times can run for 24 months or longer if there are multiple phases to deliver. It is imperative we find that right funding partner to go on this journey with you.”

Flowing funds

“Cash and relationships are key during that period; the funding has got to flow to the developer or house builder to pay the contractor. You can’t have funders querying drawdown certificates and taking too long to pay the developer, who in turn then delays paying the contractor.

“The contractor will have subcontractors on site that have paid for materials and there will be people working that require pay packets on a weekly basis. It’s a complex process and there can be major knock-on effects, so we have got to make sure that whole journey is as smooth and efficient as possible.”

Experience is everything

“The secret is in identifying the right funders in the market that we know can perform even when times are tough. So that is what we at BBA spend a lot of time working on and gaining an understanding of. It’s a complex world with lots of players, many moving parts and hundreds of nuances to consider.

“We bring them all together to deliver a cohesive solution.”

For a FREE no-obligation review of your development funding requirements, please get in touch with Derek Bradstock derek@bbafinance.co.uk or call 01672 592092


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Author: Kevin Ellis

Our company was established in 2014 by Kevin, who previously ran a highly-successful development department for an award-winning property services business. Today, he has grown Thomas Mae into a thriving business, staffed by a trusted team of property consultants who are adept at sharing their knowledge and skills. Kevin’s mission is to foster strategic land investment, to deliver solid, profitable results across the whole of the UK, and to work effectively with both private landowners as well as commercial and institutional landowners.

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