Top Ten Tips for raising finance for experienced developers: Tip 2

Top Ten Tips for raising finance for experienced developers: Tip 2







Finding the right products and services for experienced property developers can prove more complicated that it first appears. With a wealth of specialised finance available, it is always important to know what will suit your client, and which clients will suit you.



Guiding us through the intricacies of catering for more prolific developers, Michael Magee, Owner of commercial and development lender Development Finance Bank, uncovers his top 10 tips…


Tip 2: Questions to assess whether your developer could use mezzanine finance


Ideally, there are several questions that should be asked of any potential developer before you can assess how appropriate mezzanine finance might be for them, namely:

  • Are you seeing evidence of good quality deals that you could develop if you had the funding? 

  • Do you feel you are losing out on opportunities that show good returns (i.e. 25 per cent or more)? 

  • Which other senior lenders are you talking to, other than those I’m already aware of? 

  • Do you have some of your own cash – ideally between 10 and 15 per cent - to contribute to the next project? 

If the answers to the previous questions are positive, I would then say mezzanine finance - or ‘top-up’ funding - might be something that they should consider for their next development.

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