Different Types Of Property Funding
                     Different Types 
Of Property 
Development 
Funding
Brought to you by Silver Oak Capital
Introduction
When undertaking a property development, there are 
a number of important factors to consider. One of the 
most important factors is the source and type of 
funding. The source and type of project funding can 
have a crucial impact on the success of the 
development.
Development 
Finance
Development finance is a funding option that has been tailored to 
suit the needs of property developers. Development finance 
provides funding to the developer to cover costs across the 
development stages. Funding is generally provided in different 
tranches to correspond with the cash flow requirements of the 
project. 
Senior Debt 
Finance
Senior debt finance is used frequently in 
property development finance projects. Generally, borrowers will 
be required to secure the facility against the property being 
developed. Senior loans give the lender a prioritized claim over 
the property being developed. As a result, if the borrower 
defaults on the loan, the lender will have first claim over the 
property. 
Equity Finance
As alluded to previously, equity is a commonly used form of 
finance in property development projects. Equity is not 
considered debt financing as equity allows investors to hold 
shares in the project. The result of this is that equity does not 
require interest payments, which can assist with cash flow 
pressures.
Crowdfunding
Crowdfunding has recently been popularized as a financing 
mechanism for smaller scale property developments. 
Crowdfunding involves obtaining funding from a number of 
different lenders in smaller amounts. Generally, crowdfunding is 
done through an online platform where investors can view the 
details of a project and commit finances accordingly. 
Bridging Loans
Property Bridging loans are well-established options in the 
property development sphere, allowing developers quick access 
to capital. Unlike senior debt, bridging loans have shorter terms 
and higher interest rates and allow the borrower a greater degree 
of flexibility. 
Contact Us
91 Wimpole St, Marylebone, London 
W1G 0EF, UK
https://www.silveroakcapital.co.uk/pro
Conclusion perty-development-finance/ 
GIVEN THE WIDE ARRAY OF FINANCING 
OPTIONS AVAILABLE TO PROPERTY 
DEVELOPERS AND THE IMPORTANCE OF THE 
FINANCING DECISION, IT IS IMPORTANT THAT 
DEVELOPERS ARE ADEQUATELY INFORMED 
WHEN DECIDING ON HOW TO FINANCE THEIR 
DEVELOPMENT.