The Intermediary – March 2025 - Flipbook - Page 8
SPECIALIST FINANCE
In focus
“SMEs need better access to finance, which they
simply aren’t getting from mainstream banks.”
Specialist lenders, she explains, can fill this
gap by offering tailored funding solutions, lowervalue development loans, and structured finance
for residential-led schemes.
This shift is not just benefiting SMEs –
it is redefining the market. Gardner says:
“Developers are spoilt for choice for specialist
lenders, and it means that pricing is competitive
and commercial terms are attractive.”
Beyond just competitive rates, specialist
lenders bring regional knowledge and bootson-the-ground expertise, helping developers
navigate local challenges while structuring
deals that withstand rising costs and sector
volatility.
Gardner adds: “Specialist lenders also have
unique expertise in structuring deals to cope
financially with the current sector challenges
that are driving up costs and delays.
“There is significant competition in the lender
market, in fact, there has never been a better
time to be a developer looking for finance. The
Bringing bespoke options
Traditional banks often prioritise large, low-risk
loans to corporate housebuilders, leaving SME
developers scrambling for alternative funding.
Leitch says: “Mainstream lenders look at a
balance sheet and make their decision. That
works for a large housebuilder, but an SME
project is far more nuanced. In specialist finance,
we don’t just fund developments – we live and
breathe them alongside the developer.”
Specialist lenders are more likely to offer
tailored financial solutions that reflect the realworld challenges of small-scale development.
Murciano says: “SME housebuilders rely on
a range of specialist funding solutions that
provide the certainty of funding often lacking in
traditional bank lending.”
These solutions include development finance,
which covers upfront construction costs and
allows for staged drawdowns as the project
progresses, ensuring developers are not burdened
with large interest payments before they even
break ground.
p
market has a lender for everyone, and plenty of
consumer choice.”
"Let's come back in a year and see how Keir's
ambitious plans to build 1.5m new homes is going"
