What is joint venture finance used for?
Typically ‘JV’, joint venture, or venture property development finance is for developers and builders who don’t have enough capital to get their project off the ground and so look for a partner or investor willing to put up the cash to get things moving.
In most cases investors and finance companies prefer experienced developers who can evidence a track record of success, however, high quality proposals will always be considered regardless of experience if you have a high quality team behind you.
If you’ve unearthed a solid and profitable opportunity then there will always be somebody willing and able to help you out with the capital and finance to get things moving.
Criteria for Joint Venture (JV) lending
When considering your financial needs, JV lending is much more flexible with its lending criteria due to the fact that it’s a joint venture and these are often considered in individual merit.
In terms of the broad expectations of joint venture lenders, they’ll often want you to have detailed planning permission already in place for your development site.
They’ll often consider multi-unit developments, residential new builds or conversions but will expect you to either be experienced in this type of development or have an experienced team around you.
The Gross Development Value (GDV) will often need to be in the region of between £1 million to £15 million, but a quick enquiry through our team of experts will allow you to gain more detail.
How does it work?
As with any type of finance, and especially with joint ventures (JV), we’d advise you to speak to one of our specialists who can speak to you and get a feel for your project and what you’re looking for.
Each different development will mean different finance needs and so we’ll need to take a look at your project in order to match you with the most suitable lenders and investors.
Once we’ve got you ready we’ll match you up and approval can be as quick as 24 hours with funds being released shortly after.
Do I qualify for a loan?
As with the finance criteria we’ve outlined above, your enquiry will be different to other development finance requests. If you meet the criteria above then there’s a good chance you and your project will qualify.