In 2020, the world experienced unprecedented upheaval with the COVID pandemic. Not only the healthcare impacts, but the associated lockdowns and restrictions on movement will have ramifications for years to come. Millions around the world have experienced the catastrophic consequences of the pandemic. Wreaking havoc with the global and local economy, 2021 will be a year spent continuing to deal with the crisis.
The construction industry is a key driver of economic growth and creates employment which South Africa is in desperate need of. With property developers looking for astute investment opportunities to enable and support growth, the industry is looking at a positive year ahead, however finance in this sector can be a significant stumbling block, one which can threaten the viability of even the most attractive project.
Traditional banks are under extreme pressure to focus on existing clients and with economic contraction a reality, they remain risk averse. Accessible finance remains a challenge for most property developers. Before starting any property development, it is critical to establish how much you can borrow and how you will manage the associated costs of financing. Not having adequate funding
secured can cause serious delays and even threaten the chances of a successful project.
Another frustration is the length of time it can take to get finance approved. This leaves developers with cash flow frustrations and unfortunately places great strain on development projects, even affecting their viability. Access to finance is critical to avoid a deal falling through. Do you ever feel that your bank doesn’t share your vision for a project? Don’t let an opportunity slip away while you worry about the uncertainty of financing a deal. Take the time to find a financial institution that understands your project, is flexible and responds quickly to changes in the market. Finding a trusted partner for your development will take the headache out of financing.
When looking for suitable finance options, it is important to have a proven track record, ensuring that a proper feasibility study has been undertaken and that the appropriate approvals have been received. Establishing commercial viability is an incredibly important part of proving your case when sourcing funding. This will help to streamline the process of accessing finance and ensure a fast turnaround time. While many traditional banks may remain risk averse, Prevance is proud to offer alternative funding solutions that will suit innovative developers. Prevance has built up a reputation over the years for understanding the market and developing innovative solutions for their clients.
With a fast turnaround time and no upfront fees, their Property Finance Development
solution is intended to:
Assist developers to break ground or to complete a property construction project
Finance to unlock the value of a project
Funding is granted up to approx. R7 million per transaction Each project is judged according to its own merits and positive bankable pre-sales
and council approvals can achieve favourable interest rates. Long-term rolling facilities are available. They know that each project is unique and they take the time
to assess each case individually.
Their market knowledge is unmatched, and they understand the current market trends, which means that they are able to offer their clients a wide range of financing
solutions with competitive interest rates. They pride themselves on fast turnaround times and they treat all requests with complete confidentiality. They understand that circumstances are sometimes difficult, and they pride themselves on offering dynamic solutions to complex situations. Soon after approval is received and all the simple agreements have been signed and the security mortgage bond is lodged for application, the advance will be paid. Fees are negotiable for each client, but they generally range from between 3% and 4% per month.
Prevance is constantly looking for innovative ways to help better serve their clients. If you would like to find out more about their Development Finance solution, get in
touch with one of their highly skilled consultants on 086 098 7987 or email email@example.com or apply online at www.prevance.co.za