For many would-be developers, finance is the barrier that stops a good project before it starts. It needn't be. Development finance works differently to a home loan — and knowing how helps you plan, and borrow, with confidence.
How it differs from a home loan
Development finance is released in stages against the project, not handed over up front. Lenders assess the project — its costs, end value and feasibility — as much as the borrower, and funds are drawn progressively as the build reaches milestones.
What lenders look at
- Loan to cost and loan to value — how much of the project the loan covers.
- Presales — buyer commitments before or during construction, for larger projects.
- Borrower and team experience — a credible delivery team de-risks the loan.
- The quality of the feasibility — a clear, conservative, lender-ready feaso unlocks better conversations.
A good feasibility is your best finance tool
Lenders fund confidence. A rigorous feasibility — with defensible costs and realistic values — is often the difference between an approval and a knock-back, and between average terms and good ones. It's one more reason we model every project thoroughly in Scout™.
How we help
Where it helps, we connect you with SGB Finance, our development finance partner, to structure funding, navigate lender requirements and align the finance with your development strategy — so funding supports the project rather than constraining it.
Frequently asked questions
How is development finance different from a home loan?
It's released in stages against the project as it reaches milestones, and lenders assess the project's feasibility and end value as much as the borrower.
What do lenders look for?
Loan-to-cost and loan-to-value, presales on larger projects, the experience of the delivery team, and a clear, conservative feasibility.
Does Studio 72 help arrange finance?
Where it helps, we connect you with SGB Finance, our development finance partner, to structure funding and align it with the development strategy.
This article is general information only and is not financial or credit advice. Seek advice specific to your circumstances before making finance decisions.