If you have found property here in the UK that can be remodelled or developed into a more productive shopping or dining area, you may want to pursue a commercial loan application to get the funding that you need. Using a trained broker can guide you to lenders and investors who can provide you with the money that you need to complete the work in a timely fashion. Let’s look at some of the information that you should organise to present to the professionals when you meet to fill out your application.
- A property development finance loan will be based on the assets that you have as balanced with liabilities. You will have to provide a statement of your role as the developer, your contact information, and other pertinent information.
- You will be required to state for what purpose you are making an application, the amount of money that you need, and the payment method that you prefer. Also be prepared to write a brief description about the security that you have available and its value.
- Part of the commercial loan application will reflect your personal details. This information includes your address, date of birth, marital status, and if you own your home. Next, you will have to attest to your credit status by ticking a number of boxes that enquire about bankruptcy, late payments, or judgements against you. You will be asked for your employment details, how long you have worked there and what your monthly income is. If you are self-employed, be prepared to list your annual income, state benefits that you receive, and the evidence that your information is accurate. You can use tax returns, a letter from your accountant, and any filed accounting records that you may have.
- Be prepared to share the personal income and expenditures that you have on a breakdown chart. This information will include your salary, that of your spouse, council tax, and the value of all of your assets. Following this, you’ll need to list your personal liabilities and personal guarantees that you have.
- You will need bank account numbers, the amount of money that you owe on loans and other debts, and any arrears of PAYE or VAT. You will also be required to tick a box informing the lender of any insolvency proceedings against you or your company.
- The type of finance that you require and the purpose for your application will also be covered. If you are applying for residential development finance, you will have to provide details about the investment property, the expected income, and what the market value of this property is.
Because a broker can help you complete this application correctly, you should hire a reputable company that is experienced with development finance. They can guide you in writing answers about your business experience, the security you are offering to secure your loan, and how to include additional information that gives your application a professional touch.