Bridging Finance Solutions has launched Next Step Development, a product aimed at enabling developers to kick start their next project prior to completion of sales at any current scheme.
Once all works are finalised at a current scheme, Bridging Finance Solutions will lend up to 70% of the value of the unsold property thus enabling the developer to begin works on the next scheme rather than await sales. This will often enable the existing funder to be repaid and release cash flow.
Customers are granted 12 months facilities, just paying interest on the number of days that the funds are used prior to sales completing and without any early redemption or exit fees charged.
Jeanette Jones (pictured), business development manager at Bridging Finance Solutions, said: “We’re fairly unique in this product offering as we understand the need within this customer group for funding during that very specific period.
“The nature of small development is that sales tend to come in clusters. Once the first property is sold, others tend to follow but there is often a time lull between completion of build and the time when that first property does actually sell.
“High street lenders won’t lend on these principles and so once again, we’re developing a solution that will unlock finance for customers to move onto their next project and keep their work force moving immediately onto another job.”