Once you have your property development finance package in place and your scheme is progressing, it’s vital that you get your drawdowns on time. There are so many moving parts to residential property development, and people need paying on time to keep the project on track.
These 3 common issues can cause delays in getting your funding through from your finance partner. In turn, this can cause delays in your timeline.
Missing or incomplete paperwork
It sounds small, but it’s important to take care of simple things like making sure invoices are in order with accurate dates and information.
Here’s a common but avoidable scenario: a developer puts in a valuation, which starts the clock with the contractor wanting payment. But because the i’s aren’t dotted and the t’s aren’t crossed on the paperwork, the monitoring surveyor needs to chase up details. This takes a day or two, followed by another day or two waiting for the correct invoice to arrive. Those days can add up to meaningful delays in getting your development finance paid out.
Claims that are difficult to substantiate
Your development finance partner needs to substantiate valuations, either through invoices or site visits. If you’re claiming for work that’s difficult to substantiate, it can lead to delays in getting your drawdown.
This is the case even if you’re claiming for something now that you’ll need later in the project. For example, if your valuation includes materials that won’t be used for weeks, it can take a few days to see what can be done. Instead of submitting claims like this out of the blue, notify your partner well in advance. It means they can plan accordingly.
Not flagging issues early on
If there are issues on the horizon, tell your funding partner (even if you think whole project is about to derail).
Trying to paper over problems only causes delays. We’re a true partner who’s on your side and wants to help resolve them. And we’re in a better position to do that if we’re in the picture from early on. Bad news won’t jeopardise your programme, but surprise news can cause delays.
Don’t risk drawdown delays – just pick up the phone to your development finance partner
We have a dedicated team to support you throughout your project. We’re property people who know that cost overruns happen, so we will consider any request. Have a concern or think there might be an issue? Pick up the phone. We take the time and have the expertise to find solutions as needed.
After all, we’re property finance partners who focus on developing relationships – and are invested in your scheme’s success.