Top Four Types of Property Development Finance

Being a property developer, landlord or investor, you must always be looking for a good property development finance to fund your projects. In this blog, we are discussing top four types of property development finance solutions that you can go for. (While choosing a solution do keep your project’s needs and your terms & conditions in check).

Commercial mortgages

Commercial mortgages score brownie points when you need to purchase any commercial property – shops, offices, warehouses and other such property that is not counted as a commercial one. This type of financing solution works the same way as private mortgages, enabling you to spread the cost of a large purchase over the time.

Commercial mortgages are mainly applied by existing businesses who want to buy their own premises, where the business runs from.

For example, a physician can spend a small fortune on rent, but can’t afford to pay outright for the building he has clinic in. It is sometimes possible to secure 100% finance through additional security.

You can approach an alternative lender like Global Capital Commercial to get to know more about commercial mortgages.

Bridging finance or development finance

The next type of funding solution available is bridging or development finance. This refers to any short-term funding that helps you cover building and development costs. The bridging finance is determined on how ‘heavy’ your project would be.

Auction finance

Auction is undoubtedly a quick and simple way to get a property at an affordable price. There are some alternative lenders specialized in auction finance. You can seek an urgent fund from such lenders, as once you have made the winning bid, you are required to pay the amount within 28 days (depending upon the determined terms and conditions for the property being auctioned).

An alternative lender, like Global Capital Commercial, helps you secure the amount in a seamless manner even within a week. 

What Are The Benefits of Short-Term Loans?

Short-term debt can be defined as a loan for a period of one year or less. Businesses rely upon short-terms loans to meet immediate requirement of buying equipment, expansion and other urgent requirements. In this blog, we are providing you top three benefits of short-term loans

Operating Capital

Operating capital refers to cash available to pay for the day-to-day operations of business, and is obtained from the revenue generated by business operations. What if a business could not generate enough revenue to meet daily operations? In such cases, small business loans help businesses meet their operational needs in an efficient manner.

Emergency Funding

There are times when a business has to tackle issues like emergency funding. And there is no way a business manager can plan for every possible emergency situation like urgent purchase of an equipment, a loss in business, replacement of hardware, and others circumstances that need immediate funding. Short-term loans assist it in dealing with issues of emergency funding. If you are looking for a short-term loan so that you can meet your businesses emergency funding needs, approach an alternative lender.

Expansion

Every business needs to be expanded along the line. And expansion of a business needs funds. Short-term loan provides a business with ready cash that helps it to initiate an expansion program. For example, short-term debt can be used to lease additional space to house the business' growing operations.

Here are some benefits of short-term loans

• Less Interest
• Lower Interest
• Credit Score Boost
• More Equity
• Easy way to meet urgent fund requirements

Approach an alternative lender to understand terms and conditions of short term loans. An alternative lender would understand your business requirements and provide you best possible solution. Further, the interest structure would be tailored according to your business requirement.