It is safe to say that one of the top concerns for property developers, perhaps the top concern, is the risk of projects running late and behind schedule. It’s a concern because as a property developer if you have taken a development loan or a bridge loan to complete your project, delay means late repayments, late repayments means default interest rates, and that’s when your profit starts to shrink. At Blend Network, we take a different approach.
We don’t believe in holding a baton to the property developer. We understand things can take a bit longer than expected and that doesn’t mean the project is not doing well. Some lenders take that opportunity to charge astronomical fees. We don’t. Instead, what we do is that we give the property developer a longer facility that he thinks he will need right from the start. So, if he thinks it will take him 9 months to build and 3 months to sell, we would typically extend an 18 months facility with the first 12 months interest rolled up and the last 6 months interest serviced. That way, we ensure that the property developer can focus on doing what he does best without the stress of having to sell quick and potentially at a discount. Furthermore, we don’t have early repayment charges and by structuring the finances this way, the risk of an extension fee is minimal.
Our approach is non-conventional and is based on our belief that we are here to build long-term working relationships with our borrowers instead of making a quick buck from their stress by putting them on default as soon as they are late. This is only one of the reasons we get repeat borrowers coming back to us.
You like the sound of what you hear? Get in touch! Call us on 020 3409 3300, drop us an email on firstname.lastname@example.org or just come and grab a coffee at our office in London’s Mayfair. We are here to listen and help you with your project.