Aberdeen Corporate Finance | Premium Commercial Finance Broker

Development finance lenders assess each application against a comprehensive set of criteria covering the borrower, the project, the financials, and the exit strategy. Understanding what lenders require — and presenting your proposal accordingly — significantly improves your chances of securing funding at competitive terms.

The criteria outlined below represent the general requirements of our panel of development finance lenders. Every lender has different appetites and thresholds, and Aberdeen Corporate Finance knows which lenders are best suited to your specific project profile.

Borrower Profile

Experienced developer with a demonstrable track record of completed projects

Minimum 2–3 completed developments of similar scale and complexity preferred

Clear and credible management structure with identified project team

Adequate personal net worth to support personal guarantees (typically required)

Clean or explainable credit history — some specialist lenders accept adverse credit

Project Fundamentals

Full, detailed, or outline planning permission in place (some lenders consider pre-planning)

Realistic and independently verifiable Gross Development Value (GDV)

Build costs supported by a QS report or detailed contractor quotes

Clear build programme with realistic timescales

Viable and well-documented exit strategy — sale, refinance, or hold

Financial Parameters

Senior debt typically up to 65–70% of GDV or 80–90% of total costs

Minimum developer equity contribution of 10–20% (mezzanine may reduce this)

Minimum profit margin of 15–20% on GDV expected by most lenders

Interest cover ratio adequate to service any serviced interest element

Contingency budget of 5–10% of build costs typically required

Property & Location

Sites in established residential or commercial locations preferred

Good transport links, local amenities, and demonstrable demand

Clear legal title with no restrictive covenants affecting the development

Environmental and planning compliance confirmed or achievable

Appropriate professional team — architect, contractor, QS, solicitor — appointed

Don't Meet All Criteria?

If your project or borrower profile does not meet all of the criteria listed above, do not assume funding is unavailable. Specialist and alternative lenders have more flexible criteria, and our role is to match your specific circumstances with the most appropriate funder. First-time developers, projects with planning risk, and borrowers with adverse credit all have viable funding routes through our panel.

Important Notice: Criteria outlined above are indicative and vary by lender. All facilities are subject to full application, valuation, and due diligence. Aberdeen Corporate Finance Limited is not regulated by the FCA.

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