Collaboration is key to the success of a development loan project

In the world of regulated development loan projects, success hinges on more than just having the right financing in place. It requires a harmonious blend of teamwork, creative thinking, and close collaboration between lender, broker and client. 

At Alternative Bridging Corporation, these elements are the foundation of our approach, enabling us to deliver funding for high-pressure projects within tight deadlines. 

Working Together to Achieve Success

Projects with stringent timelines are commonplace in the development finance sector. To manage these effectively, teamwork is paramount. At Alternative Bridging, we adopt a ‘one team’ approach, integrating our efforts as seamlessly as possible with those of our broker partners and, by extension, their clients. This collaborative model ensures that everyone is aligned with the project’s goals and deadlines, while fostering an environment where communication and support flow freely.

As a provider of regulated development loans, we understand that the ability to anticipate potential problems is as crucial as solving them. A prime example of this is the £3.5 million regulated development loan we recently facilitated for the construction of a large luxury home within a 12-month period. During the project, our proactive approach as the chosen lender was instrumental to its success. Through close collaboration with the broker and their clients, we identified creative solutions to overcome obstacles in the build. 

For example, while the clients had bought the land with existing planning permission, they chose to redesign the entire property. This decision extended the process, and it became evident that the construction timeline would exceed 12 months, which is the maximum term for a regulated development loan. As a solution, the clients financed the initial stages of the build using their personal savings and started construction prior to our disbursal of funds to commence the 12-month loan term.

However, the clients had overspent by the stage at which we were able to release the funds. Our experienced asset manager dealt with this issue by increasing the amount released upon completion, covering the overspend and bolstering their cashflow. This solution not only kept the project on track but also enhanced the overall quality of the outcome.

The Importance of Market Knowledge and Experience

This case clearly highlights how navigating the complexities of development finance requires deep market knowledge and experience. This expertise enables us to work efficiently with brokers to ensure their clients receive the appropriate solutions tailored to their specific needs. At Alternative Bridging, our team’s collective experience ensures that we can handle even the most challenging projects with confidence and precision: it’s very likely that we will have previous experience of successfully dealing with any particular issue that may arise.

In this case, the client, Simon Pickering, valued our approach to proactively anticipating potential hurdles and developing flexible strategies to overcome them. 

He said: “The thing that really sets Alternative Bridging apart from other lenders is the genuine focus it puts on the personal service it delivers. Working with the lender felt like a true partnership where all of us were striving for the best outcome.

“We were able to take a flexible approach to overcoming challenges and identifying the best route forward. I have no doubt that this approach was a vital element to the successful completion of the build.”

The success of regulated development finance projects lies in the strength of the partnerships formed between the  lender, broker and clients. With any property development loan, our commitment to working close in collaboration with our intermediary partners and maintaining a flexible, problem-solving mindset is what sets us apart. As demonstrated by our successful completion of the £3.5 million luxury home project, Alternative Bridging is dedicated to achieving the best outcomes for brokers’ clients, proving that when we work together as one team, anything is possible.