What lenders really look for

Sourcing the right lender for your scheme is often one of the most important early steps you take as a developer. If you find one who’s on the same page as you, is there to support you through the process and work with you to get the best result for everyone involved, you’ve struck gold.  

The flip side of the coin is that some relationships don’t work out. When things don’t go according to plan, some funders will cause more problems for you rather than helping you to find solutions.  

When it comes to sourcing the right funder, you’ll want to know exactly what it is they’re looking for. In this short article, we look at the things we and other funders look for in our funding partners. By the end, you’ll have a strong idea of how to position yourself for maximum success when approaching your ideal funding partner.  

Experience matters, but it’s not absolutely everything

Past delivery is one of the clearest indicators of future success. That’s why lenders will always want to see your development track record early doors. That doesn’t mean you need decades of development experience, but you do need to show you’ve taken steps up the ladder and understand how projects actually come together.

Starting with smaller schemes like extensions or refurbishments and progressing from there shows that you’ve built up knowledge in a practical way. If you’re moving into something more ambitious, we would want to see that that progression is grounded in reality, not a leap into the unknown.  

Lenders want to feel confident that working with you, and experience is one of the most reassuring factors.

Cash flow is king during delivery

Development can be financially demanding, particularly once a project is underway and not yet generating income. From a lender’s perspective, one of the biggest risks is a borrower running out of cash mid-project, which can quickly stall progress and create wider issues.

Having access to additional funds is a good way of mitigating this risk. This could be savings, other assets that can be leveraged, or a separate income stream from another business. Of course, you can’t get off the starting grid without a deal that stacks up well on paper, but it’s not enough in isolation. You need to demonstrate that you’ve got the resilience to keep things moving when costs shift or timelines extend.

Local knowledge and the right team

Understanding the area you’re developing in is a major advantage. That might come from previous projects in the same location, long-standing connections, or detailed research into the local market and planning environment. Either way, it shows you’re not going in blind.

Just as important is the team around you. Lenders will look closely at the contractors, consultants, and professionals you’re working with, particularly if you’ve delivered projects together before. A well-established team brings consistency, reduces risk, and gives confidence that problems can be dealt with quickly when they arise.

A well thought- through proposal

A strong proposal goes well beyond a rough idea of what could be built on a site. Lenders want to see that you’ve done the groundwork and invested time in understanding whether the scheme is genuinely deliverable.

That might include early design work, input from planning consultants, or initial viability assessments. If you’re entering a scheme without planning in place, you’ll need to show a clear rationale for why approval is likely. That could be alignment with the local plan, awareness of constraints like Green Belt, or evidence that similar schemes have been approved nearby.

The key is that it feels considered and backed up, rather than speculative or overly optimistic.

Credit history and honesty

Credit history will always form part of the picture. Issues like missed payments or CCJs won’t automatically rule you out, but they do need to be understood in context.

What matters most is transparency. If there’s something in your history, it’s far better to address it upfront than leave a lender to uncover it later. A clear explanation, backed by evidence of how the situation has been resolved or improved, goes a long way towards building trust.

What if you don’t have much experience?

A lack of experience doesn’t necessarily close the door, but it does shift the emphasis onto other areas of the deal. As a lender, we would look for reassurance elsewhere to balance that risk.

Strong financial backing becomes even more important, as does the quality of your professional team. Bringing in an experienced project manager can make a significant difference. They act as the eyes and ears on site, helping to manage costs, maintain programme, and make informed decisions as the project evolves.

There’s a cost attached, typically a percentage of the overall build cost, but it often proves worthwhile. In many cases, the value they add through smoother delivery and better decision-making outweighs the initial outlay.

It all comes back to risk and reassurance

At its core, lending is about understanding and managing risk. Every project is different, but the underlying question remains the same: how likely is this to succeed?

Experience, financial resilience, local knowledge, professional support, and honesty all feed into that assessment. The more clearly you can demonstrate strength across those areas, the easier it becomes for us as a lender to get comfortable.

Get those fundamentals right, and you make it straightforward for a lender to back you with confidence.

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