We understand that each client’s circumstances are different, and they need a development finance broker to source property finance solutions specific to the borrowers need.
What is a revolving credit facility?
A revolving credit facility is a pre-agreed debt instrument secured against existing property assets, for example, an investment portfolio with sizeable equity.
How does a revolving credit facility work?
Being like an overdraft, it allows the borrower the flexibility to drawdown and repay as many times as needed on the facility. Although terms may vary, and to purchase property fund in part, for example at an auction or in full if there is sufficient equity available.
Key features of revolving credit facilities
- A working capital facility and not intended to be used as a long-term facility
- Can be set up quickly
- As a pre-agreed facility, a new application is not required each time you use it
- Allows a developer to buy property quickly
- Can finance 100% LTV and/or 100% construction costs within the agreed credit limit
- Finance the purchase of land with or without planning permission without and lender restrictions.
- Interest rates can be higher than a term loan, but savings can be made as no interest is charged on the non-utilized element of the facility
- No early repayment charges
- Up to 3 years and renewable if ran smoothly
- Available on a first charge or second charge basis