This week, we shall be discussing the five important questions you will need to ask yourself before choosing to give your development finance application the go-ahead. In the right circumstances, development finance can truly save the day. However, just as with all other forms of financial products and services, it is extremely important that you know exactly what you are getting yourself into.
So, if you want to be sure that you have taken the best approach possible, we have five key considerations you need to address before you go ahead with your application. If you find that you doubt any of these key questions, then we highly recommend you get in touch with a reliable and independent broker to know more.
Do you Really Need Development Finance?
The first thing is that it is always worth questioning whether or not you genuinely need development finance in the first place. You may actually find that, given your circumstances, there are alternative solutions available to you. This would mean that taking on additional debt may not be the best option for you. Think carefully about what you wish to do with your development finance and what you can expect to get out of it. This will help you to determine whether or not this is an option you should truly be considering.
Will you need Short-Term or Long-Term Finance?
Your answer to this question is sure to affect how you can determine which loans and financial products may or may not suit your needs. A bridging loan is short term but is also ideal if you need a quick funding solution. Longer-term, development finance and more conventional mortgage products could give you what you are after. Be sure to specify how soon you will need the money and how soon you plan on paying it back.
How Much Development Finance will you Need?
There are two reasons as to why this question is extremely important. The first is that if you were to request too much money and were then unable to justify why you need that much, you are far more likely to be rejected. Secondly, if you were to ask for too little and find yourself in need of more finance as time goes by, it is an inconvenience and indicates a lack of professionalism. So, it is the key lies in being as meticulous and precise as possible when it comes to deciding exactly how much you intend to borrow.
Are you Aware of all the Associated Costs?
You cannot forget to carefully consider all of the associated costs that go in line with development finance. Paying back the loan amount is one thing, but what about the costs of arrangements, the interest rates, commissions, etc? Fees and charges quite often vary from one lender or broker to the next. They are not something you should take for granted.
Have you Truly Considered all the Options Available to you?
Last but not least, these days the market is quite high when it comes to intelligent or alternative” financial products and services. However you plan to use the funds you receive, it is likely that there are multiple, perhaps dozens of viable avenues to explore. This is why it is imperative that you find yourself a reliable, reputable and fully independent broker, who can help you explore and consider the most appropriate solutions for your financial needs.
Talk to Steven Glicher
Having a professional by your side to see you through all financial decisions you must face is imperative for a successful business. Steven Glicher is here to make sure you are taking the right financial steps to get your business off the ground. Get in touch for more information.