How to Raise Finance for Your Commercial Property Development Project

Commercial property development offers significant opportunities, from office refurbishments and retail conversions to large-scale industrial or mixed-use schemes. Yet the capital required is substantial, and securing the right finance can be the difference between a project that thrives and one that stalls.

Traditional bank lending is no longer the default solution, and developers have begun to explore flexible, specialist property finance tailored to the commercial market.

Key finance options for commercial development

Commercial property projects vary widely, and so do the finance structures available. The right solution depends on whether you are redeveloping an existing site, undertaking a ground-up build, or acquiring premises to hold as an investment.

– Development finance provides staged drawdowns for construction or major refurbishment, often covering both land acquisition and build costs.

– Bridging loans can secure a site quickly or provide interim funding while long-term finance is arranged.

– Revolving credit facilities are perfect for site acquisitions or property auction purchases.

– Commercial mortgages may suit projects where the completed property will be retained as a long-term asset.

Each comes with different terms, security requirements, and repayment structures, so understanding your project’s cash flow and timeline is essential before deciding.

How to prepare your property finance proposal

Commercial developments require detailed preparation to secure finance.

Lenders will expect:

– A professional business plan with financial forecasts, an exit strategy, and a clear return on investment

– Evidence of planning permission or significant progress towards securing it

– Accurate valuations and cost breakdowns from surveyors or contractors

– Details of your track record or relevant project experience

Even if this is your first commercial development, presenting a well-researched plan backed by expert advice can improve your credibility and strengthen your application.

Why you need specialist finance for commercial property projects

Commercial property projects are often more complex than residential builds, with longer timescales, higher upfront costs, and stricter planning requirements. Using a finance product that matches the rhythm of your development is vital.

Development finance, for example, releases funds in stages based on build progress. This keeps your interest payments lower than if you had drawn the full facility upfront. Bridging finance, on the other hand, gives you speed when you need to move quickly on a site or secure a property before refinancing.

The UK commercial property sector remains a major part of the economy, valued at over £1 trillion, with strong demand in logistics, industrial space, and flexible workspaces. With the right funding structure, you can take advantage of this demand while managing risk effectively.

Common challenges developers face

Commercial projects often involve complex funding needs, from land acquisition to fit-out. Cash flow gaps can emerge if funding is not properly staged, and unexpected costs can quickly erode margins. Timing is another challenge, as opportunities to secure prime sites are often time-sensitive.

By working with specialist lenders and brokers, you can access funding structures that align with these challenges, providing both the flexibility and speed commercial property development requires.

The next steps

Raising finance for commercial property development is about more than finding capital. It is about structuring the right funding to match your project, ensuring cash flow is maintained throughout, and positioning yourself for long-term returns.

If you are planning a new commercial development, exploring specialist finance options early will help you secure the resources to deliver on time and within budget.

Jones & Co can support your business in identifying the right option for you and securing the right funding with specialist lenders.

Speak to our commercial finance brokers

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