What do Lenders Recommend in Your Big Property Project Finance Application?
Almost all the people with their big property project finance application under making, ask themselves this question – How to make my finance application stand out?
Finally, there is an answer to this question. There are ways in which you can make your financial application in a way that lenders decide to finance your project. Have you ever thought of mentioning points that may actually interest the lender?
With no single shred of doubt, lenders can be convinced to finance your project if you try to narrow the focus of the finance application to those elements that the lenders actually want to know.
Are you wondering what do lenders recommend? Continue reading.
- Mention Your Financial Position and Credit Worthiness
Only someone who wants not to play with a full deck would miss these. These are the key elements that a lender would like to know before financing your project. Are you thinking of twisting the truth? Well, there is no reason you should attempt to alter the facts.
- Do Not Miss the Realisation Values and Project Expenses
Do not beat around the bush. You should know every nook and cranny of the project. What’s the land value? What are the product prices? What are the building costs?
- Come to the Team Work and the Past Experiences
Have you any past success in a similar project or any other different project? Is your team reliable? Do they actually know what they are into? These kinds of testimonials boost the chances. The lenders will start showing confidence in your team.
- Know your Capital Structure and the Project Feasibility
Ask yourself these questions-
- Do I know my capital structure? How the debt and equity is going to work?
- How much of the equity is a part of the transaction?
- What are my sources of funding?
- How will I use the different kinds of funds?
Project feasibility counts on factors such as – costs, end values and the time required to complete the project. Is your project feasible?
Summing up, you must have heard how the lender-borrower negotiations go. Amusingly enough, as long as you’re able to convince the lender that you don’t need the money, the easier it becomes for the lender to lend it to you!