The last blog looked at how funders’ faffing costs you a great deal of money, and how we can help. Below, we take an overview of some interesting market trends and how we are best placed to fund them as we wrap up our series of 40 (but don’t worry, we won’t finish there).
At CrowdProperty, we’re right at the forefront of the market, given our expertise in exactly the asset class and segment we lend to – property professionals undertaking small and medium sized projects. Exactly those people, in other words, who have been underserved by traditional sources of finance for years. We lend to anything that will take the developer from acquiring the asset, through adding value, to either selling or refinancing.
In this position, we get an eagle-eye view over the whole SME development market - as we see about £2bn of applications each year - so get a real feel for the breadth of the market. This gives us strong insight into the major trends among SME developers – i.e. your peers. To reinforce this, we conducted the largest SME property professional survey ever to give you a strong, collective voice – and, of course, to give us a greater insight into our market. What we’ve learned is it’s far from plain vanilla build out there – it’s an incredibly inventive and innovative market.
Given this privileged position, we thought it would be useful to share some of this information – and we’ll be delving deeper into this in the future. But for now, here are some of the are some of the things that your peers are doing more and more of in the market, all of which we fund:
Of course, this isn’t even a bite-sized summary – we’re just skimming the surface here. But unlike banks, who all too often will suck in their cheeks and tell you “that’s going to cost you”, like a bucket-shop car mechanic, we understand how all this works – and we fund it. One of our favourite quotes from focus group research was this reflection on traditional sources of funding: ‘Their reaction to a clever deal was to lend me less and charge me more’. That’s a rational bank reaction if you don’t understand something. But we love understanding those smart structures, so we don’t lend you less nor charge you more – we’ll give you credit for some smart work. Here’s one Air Rights example, where we tackled many funding complexities in the project, with great results:
If you’re doing any of this and are getting uncomprehending looks back from your lender, then drop us a line. If you’re doing something we’ve not got covered... well, we’d be surprised, but we’d love to hear from you, as we – like you – are determined to stay at the forefront of this business and keep fuelling its, and your, innovation.
This, the 40th article in our series of 40 on alternative finance, peer-to-peer lending, property and CrowdProperty wraps up our series. We hope you’ve both enjoyed them and found them informative about the exciting new era of finance and in particular property project finance. We never rest on our laurels and have plenty of valuable content to come. Equally, do let us know what you would like to know more about – the series has proved to be very popular and we are happy to tackle further topics that you wish to know about.