November 2025 - Mayfair Commercial Mortgages

So, you have found the perfect plot of land that is just waiting to be transformed into something amazing. You are pumped up, but you don’t know how to pay for it. Property development can be exciting, but it requires a lot of money up front. Thanks to property development finance, you can now relax.

At Mayfair Commercial Mortgages, we help investors and developers find the right funding to turn their property dreams into real projects. We will cover everything one should know about development finance. We want you to make the best choices possible when financing your next project.

What Is Property Development Finance?

Property development finance is a type of short-term loan specifically for property projects. It is meant for businesses that want to develop rather than just buy property. That is where it is different from a regular mortgage.

There are different types of development finance. Let’s talk about 3 of them:

Bridging Loans: This loan is ideal for short-term funding. People use it to buy property quickly before longer-term finance is arranged. It’s temporary.

Development Loans: This loan is released in stages as the project progresses. It is used to fund the actual building or renovation work.

Mezzanine Finance: It is a smaller and secondary loan. A mix between debt and equity. It is mostly used to fill funding gaps when you need extra cash to complete a project.

Why Property Development Finance Matters

Property development is rarely cheap. You will need funds for land purchase, construction, materials, and professional fees. Unless you are a billionaire, this amount of money can be hard to arrange.

Property development finance solves the problem of cash flow. It provides the money needed to get your project off the ground before any sales income starts coming in. Even the best projects can stall halfway through if you don’t have financing.

It gives you enough money to buy, build and finish your project successfully.

How To Qualify for Property Development Finance

Getting approved for property development finance is not as scary as it sounds. However, lenders do need to see that your project is profitable for both parties.

At Mayfair Commercial Mortgages, we help you prepare so your application stands out to lenders.

4 things they want to see:

A Solid Plan: Lenders want to see detailed plans and timelines. Your project has to look organized. It will give the lenders more confidence in your work.
Experience: Experience matters everywhere! If you have managed development projects before, that is a green flag. Don’t stress if you are new. All you need are some good advisors to get you through.
Good Credit and Equity: Lenders want you to contribute some of your own money. This shows your commitment. It is also reducing their risk.
Exit Strategy: Lastly, you will need to show how you plan to repay the loan. This is the rule for every loan type. They will ask if you will repay by selling the property or renting it out.

Steps to Secure the Right Funding

We know you cannot wait to start your property development. So, here is a general roadmap to getting your property development finance sorted:

Define Your Project: Know exactly what you want. Have a clear sketch of what you want to build.

Estimate Costs: Take all expenses into consideration. Include land, permits, materials, labor, and unexpected expenses.

Get a Professional Valuation: This helps lenders understand the project’s potential value.

Apply Through a Broker: Companies compare lenders and negotiate the best terms for you. Expert help can make the process so smooth for you.

Review and Sign the Offer: The hard step is just to get it approved. Then, the funds are released in stages as construction progresses.

Summarizing the Features of Property Development Loans

An initial advance covers the start of construction. The remaining money is released in stages as you hit specific development milestones.
The loan amount is based on the Gross Development Value. Most lenders will offer you between 60-70% of the project’s GDV.
The principal is repaid after development is completed. The interest is paid monthly or rolled up to be paid at the end of the project.
The lending term is between 12 to 24 months. It can extend up to 36 months.

Conclusion

Property development finance is more than just a loan. It is a partnership that fuels your vision. Financing property development feels overwhelming, but it does not have to be. You can turn your ideas into successful projects with the right planning.

Ready to bring your project to life? Contact Mayfair Commercial Mortgages today to explore flexible financing options that work for you. Our trusted team will be helping you secure the best possible deal.

FAQs

What is the best way to finance a project?

You can get traditional loans from the banks or government grants. Equity investments from private investors and project bond financing are also some ways.

Can you get 100% development finance?

Yes, you can get 100% development finance! It is structured as a joint venture with a funding partner. It is different than a traditional loan.

How much are the lenders willing to finance?

Lenders determine the loan amount based on the Gross Development Value. It is the total estimated value of the project once completed. It is usually between 60-70% of the GDV.

What is the meaning of property finance?

Property finance is the process of securing funding to purchase/develop real estate. The property itself is used as collateral.

What are the main things I should consider before applying?

Sometimes, lenders want to visit your building under construction. He will assess the progression of construction before releasing the stage payment. Moreover, the documentation phase is absolutely necessary step.

If your business is scaling faster than you have ever imagined then you are probably running into one big question which is how do you fund that growth? The traditional bank loans can be slow, rigid, and sometimes just not enough at the same time. That is where Specialist Finance comes in to make things easier for you. You simply need to think of it as a toolbox of tailored financial solutions that has the ability to keep up with your momentum even when cash flow feels tight or your balance sheet is not perfect.

We all are aware of the fact that there are hundreds of companies working in the market but let’s bring in a trusted name which is Mayfair Commercial Mortgages. It is interesting to know that “mortgages” might be in their name but they do far more than property lending. They have built a reputation in the market for helping ambitious companies in order to find specialist finance options that fit as per their growth journey. Their guidance would definitely prove to be helpful for the business owners to avoid roadblocks and make smarter financial moves from asset-backed lending to invoice financing and venture debt.

6 Finance Options Every Growing Business Should Know

Following are six popular ways explained about how fast-growing companies are getting the capital they need without relying solely on the traditional banks.

1. Venture Debt

If you are a startup or growth-stage company which is already backed by the investors then venture debt could be a game changer for you. It is one of the easier ways to raise money without giving away too much equity. You must be thinking about the trade off in this scenario? It is interesting to know that the higher interest and sometimes warrants (a small slice of equity) could be the trade off. It has proved to be worthy but only for the companies that need quick capital between funding rounds.

2. Invoice Financing

Have you ever felt like you are waiting forever for clients to pay? Well, that is a relatable issue that could be addressed with invoice financing. So you don’t have to worry about it. You can also turn these invoices into instant cash instead of stressing over 30-90 day payment terms. This whole idea of invoice financing might be a great helping hand in keeping your operations moving while you let a finance company handle the wait.

3. Asset-Based Lending (ABL)

If you are having valuable assets like equipment, inventory, or even receivables then Asset Based Lending will let you borrow against them. It is simply perfect for the businesses with strong balance sheets but maybe weaker cash flows at the same time. Are you still wondering for the best part? The borrowing power is directly proportional to the more assets you build.

4. Revenue-Based Financing (RBF)

Revenue Based Financing one is especially popular with SaaS companies and e-commerce brands. It is interesting to know that you can pay back a percentage of your revenue instead of the fixed repayments. So if sales dip one month then your repayment goes down at the same time. It is non dilutive and flexible which does end up making it a favorite for businesses that don’t want to give away their ownership.

5. Equipment Financing or Leasing

The upfront cost might also sting when the growth means buying new machines, vehicles, or tech. The option of equipment financing would definitely play a role in spreading that cost out or lets you lease instead. It’s often considered quite easier when it comes to security than other loan types since the equipment itself usually acts as collateral.

6. Purchase Order (PO) and Inventory Financing

There might be a possibility that you have landed a big order but don’t have the cash to fulfill it. The option of purchase order financing would help you to cover supplier costs so that you can deliver without draining your bank account. The inventory financing might let you use stock as collateral in the same way. It is interesting to know that both are lifesavers for the businesses with seasonal demand or heavy supply chain expenses also.

Why Specialist Finance Is Booming

You must have noticed that banks have tightened their credit policy that ends up making it harder for younger or rapidly scaling businesses to borrow. The option of Specialist finance does fill that gap with solutions that are tailored to real-world business needs. It is interesting to know why more businesses are turning to these solutions with the growth of fintech lenders who can process applications in record time.

FAQs About Specialist Finance

What exactly is specialist finance?

The specialist finance can be explained as a range of non-traditional financing solutions like invoice financing, venture debt, or asset-backed lending which are specifically designed to meet the needs of fast-growing businesses.

Is specialist finance more expensive than a bank loan?

Yes, specialist finance is more expensive than a bank loan as the interest rates and fees are often higher, but the flexibility and speed can outweigh the cost too.

Can startups use specialist finance?

The startups can easily use specialist finance as they often turn to venture debt, revenue-based financing, or invoice financing.

Will I lose equity with specialist finance?

That is not always the case as some options like venture debt may include warrants.

How quickly can I access specialist finance?

You can access specialist finance much quicker than the banks.

How To Finance Property Development?