It is absolutely critical that SME developers get access to the right lending products to support their business, says JOHN HEWITT
Closely watched private sector data compiled by IHS Markit showed UK construction activity in March hit a six-and-a-half-year peak. It reported ‘robust growth’ in all sub-sectors with job creation in the industry at its highest for two years.
Against this surge in activity, and the launch of the new Recovery Loan Scheme to replace CBILS and BBLS, any borrower involved in residential property development should ensure they are speaking to the right people at the right time.
Several new lenders have entered the Scottish development finance arena, with more due to follow in the next few months. Scotland is increasingly seen as a sensible place for lenders to expand their business activities while insulating against some of the dramatic price movement which can be experienced closer to the M25.
Even the choice of product types is expanding, with mainstream funding now being more and more replaced with development bridging. It is only by speaking with the right brokers that any borrower can be confident they are seeing what is available across the whole sector.
With all these new avenues opening up to borrowers, we would encourage any business owner to take the time to speak with a properly experienced development finance broker to ensure they have sufficient funding available to help their business maximise its potential in as efficient and effective a way as possible.
Often, they will also bring other experiences to the relationship that will help any developer overcome the unexpected.
With over 30 years in commercial lending John Hewitt is managing director and one of the founding members of Nummus, a specialist financial services consultancy