Funding explained · 5 min read

Funding for small property developers

Development funding is released in stages as the build progresses. Lenders focus on your experience, the planning position and how confidently the scheme can be sold or refinanced.

How the money flows

Land is often funded first, sometimes with a bridging loan. Build costs are released in tranches after a monitoring surveyor confirms progress.

What lenders look at

Track record, a full cost plan with contingency, the gross development value and a realistic sales or refinance strategy.

Bridging the equity gap

Where senior debt falls short, mezzanine or joint venture equity can make up the difference, at a higher cost.

Frequently asked questions

Can a first time developer get funding?

Yes, usually on a smaller scheme with an experienced contractor and professional team.

What happens if the build overruns?

Lenders expect contingency. Overruns beyond it usually need more equity.

Last reviewed: 2026-10-15