The size and nature of your scheme will help to direct your search as some lenders will be more comfortable with different loan sizes, leverage and types of build. Price is clearly a consideration, but it’s also a hygiene factor. Lenders should be competitive but there’s no point in choosing the cheapest lender if this also increases the chances of not being able to get the deal done in the required time frame.
Every lender bestows the virtues of its expertise and service proposition, so it’s worth looking beyond these claims at how the lender can evidence this expertise.
One way of doing this is looking to see whether the lender has its own internal asset management team of property experts. I’ve worked in the property industry for many years and have experienced very few lenders with their own asset management team. In fact, when I first joined Alternative Bridging Corporation, I wasn’t sure how this function could positively contribute to the lending process.
However, over time it has become clear just how valuable this resource is in helping us to deliver a service that other lenders can’t.
By having access to this internal expertise, we are better placed to consider a scheme that other lenders may be scared of because they don’t have an in-depth understanding of property. Our asset management team helps us to declutter the information and take measured views on a proposal, meaning that we are able to nurture and overcome issues that might automatically be a full stop for other lenders.
Such is the value to our business, that Alternative Bridging is growing its asset management team with further recruitment this year. This will build on the more than 100 years of property experience already within the team and put us in an even stronger position to make informed decisions.
The ability to make informed decisions gives lenders confidence, and confidence gives them the ability to say yes to an application. And this is why, when it comes to looking for a development finance lender, choosing one with its own internal asset management team is a good place to start.
