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Growth Guarantee Scheme (GGS)

Growth Guarantee Scheme (GGS)

by | Jul 8, 2024

About Growth Guarantee Scheme

The successor scheme to the Recovery Loan Scheme, The Growth Guarantee Scheme (GGS) launched in July 2024 and is designed to support access to finance for UK small businesses as they look to invest and grow.

The Growth Guarantee Scheme aims to improve the terms on offer to borrowers. If BLG can offer a commercial loan on better terms, we will do so.

Growth Guarantee Scheme-backed facilities are provided at the discretion of BLG. We are required to undertake our standard credit and fraud checks for all applicants.

 

Proud to be supporting British businesses

BLG specialises in providing property development finance to UK SME property developers. We are delighted to receive accreditation from the British Business Bank as a lender under the Growth Guarantee Scheme (GGS).

We are proud to be supporting British businesses navigate through these uncertain times by providing property-secured loans through this government-backed scheme.

We will be offering development finance through the GGS scheme with flexible loan structures to support individual requirements.

To discuss your Growth Guarantee Scheme (GGS) requirements, contact us today to find out more.

Get In Touch

Scheme Features

    • Up to £2m guaranteed business group: The maximum amount of a facility provided under the scheme is £2 million per business group for borrowers outside the scope of the Northern Ireland Protocol, and up to £1 million per business group for Northern Ireland Protocol borrowers.
    • Term length: BLG typically offer term loans from 12 months up to 2 years
    • Access to multiple schemes: Businesses that took out a Coronavirus Business Interruption Loan Scheme (CBILS), Coronavirus Large Business Interruption Loan Scheme (CLBILS), Bounce Back Loan Scheme (BBLS) or a Recovery Loan Scheme (RLS) facility before 30 June 2024 are not prevented from accessing Growth Guarantee Scheme, but borrowing under these schemes may reduce the maximum amount the borrower is eligible for.
    • Pricing: Interest rates and fees charged by BLG will vary and will depend on the specific lending proposal. BLG pricing will take into account the benefit of the Government guarantee.
    • Personal Guarantees: Personal guarantees can be taken at the BLG discretion, in line with our normal commercial lending
      practices. Principal Private Residences cannot be taken as security within the Scheme.
    • Guarantee is to BLG: The scheme provides the lender with a 70% government-backed guarantee against the
      outstanding balance of the facility after it has completed its normal recovery process. The
      borrower always remains 100% liable for the debt.
    • Decision-making delegated to BLG: Growth Guarantee Scheme-backed facilities are provided at the discretion of BLG. BLG are
      required to undertake our standard credit and fraud checks for all applicants.
    • The assistance provided through Growth Guarantee Scheme, like many Government backed business support activities, is regarded as a subsidy and is deemed to benefit the borrower. There is a limit to the amount of subsidy that may be received by a borrower, and its wider group, over any rolling three-year period. Any previous subsidy may reduce the amount a business can borrow. Find out more about GGS subsidies.

Eligibility Criteria

  • Turnover limit: The scheme is open to smaller businesses with a turnover of up to £45m (on a group basis, where part of a group)

  • UK-based: The borrower must be carrying out trading activity in the UK and, for most businesses, generating more than 50% of its income from trading activity.

  • Viability test: BLG must consider that the borrower has a viable business proposition
  • Business in difficulty: The borrower must not be a business in difficulty, including not being in relevant insolvency proceedings
  • Subsidy limits: Borrowers will need to provide written confirmation that receipt of the Growth Guarantee Scheme facility will not mean that the business exceeds the maximum amount of subsidy they are allowed to receive. All borrowers in receipt of a subsidy from a publicly funded programme should be provided with a written statement, confirming the level and type of aid received.

 

Please note, the following are not eligible under Growth Guarantee Scheme:

– Banks, Building Societies, Insurers and Reinsurers (excluding Insurance Brokers)
– Public sector bodies
– State-funded primary and secondary schools.

You will need to provide certain documents when you apply for a Growth Guarantee-backed facility. Please refer to our Lending Criteria for general requirements.

For more information on our Growth Guarantee Scheme support for development finance, please contact us to discuss.

BLG’s GGS funding is dedicated to supporting UK SME property developers in development finance. We do not offer cashflow loans under GGS.

Business Finance Support

The British Business Bank’s Business Guidance pages have a range of guidance and resources for businesses, including information on how to manage your cashflow and where to find independent advice. 

See further guidance and resources

The Growth Guarantee Scheme is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business & Trade. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA.

Visit: www.british-business-bank.co.uk/finance-options/debtfinance/growth-guarantee-scheme 

What Types Of Projects Are Eligible For The Growth Guarantee Scheme Via BLG?

Via BLG, the Growth Guarantee Scheme allows for UK SME property developers looking to finance development projects. BLG does not offer cashflow loans under the scheme, focusing instead on property-secured loans for developments, including residential, commercial, and mixed-use projects.

How Much Funding Can I Receive Through The Growth Guarantee Scheme?

The maximum funding available under the GGS is up to £2 million per business group for borrowers outside the Northern Ireland Protocol. For borrowers within the Northern Ireland Protocol, the maximum is £1 million. The exact amount will depend on the specific needs of the development project and the borrower’s eligibility.  Additional development finance loan amounts, albeit non guaranteed are available through BLG.

How Do I Apply For The Growth Guarantee Scheme?

To apply for the GGS through BLG, you’ll need to provide details about your development project, financial information, and other relevant documents. Contact BLG directly to discuss your requirements, and our team will guide you through the application process, including the necessary documentation and assessment steps.

Can The GGS Be Used Alongside Other Financing Options?

Yes, businesses that have previously accessed the CBILS, CLBILS, BBLS, or RLS schemes before June 30, 2024, can still apply for the GGS. However, previous borrowing under these schemes may reduce the maximum amount eligible under the GGS.

How Does The Growth Guarantee Scheme Affect My Equity In The Project?

The Growth Guarantee Scheme is a loan facility, so it does not directly affect your equity in the project. However, the loan terms and any personal guarantees required may have implications for your overall financial position. BLG can provide ongoing guidance on how the GGS fits within your broader financing strategy.

What Happens If My Project Experiences Delays Or Cost Overruns?

In the event that your project faces delays or cost overruns, BLG will work with you to assess the situation and explore possible adjustments within the framework of the scheme. It’s important to communicate any challenges early to find a solution that aligns with your loan terms.

Contact Us Today

    Need to know more?

    To discuss your Recovery Loan Scheme (RLS) requirements, please email us at [email protected] or call us to discuss.

    Get In Touch

    WHAT OUR CUSTOMERS SAY ABOUT US

    "A challenging site like no other with every inch of the plot being built on and 12 apartments built-out through a driveway 2.5m wide off of a main high street with limited access rights, not to mention all the complexities associated with 13 Party Wall Agreements. Most lenders would not have had the vision for the scheme or the confidence in Spiller Builders to build out the scheme.  I just wanted to say how helpful the entire BLG team have been during the build. A very approachable and knowledgeable team, with a “can do” approach to lending. We will be looking to do more business with you for sure."

    “We have used BLG for development finance for over 8 years. During that time we have found their knowledge and expertise in the property development industry to be second to none. Their loan process, pragmatic and flexible approach to lending and flexibility when required has supported our business needs throughout the period and provided us with support to deliver new homes in Bristol and the surrounding areas.”

    “As property developers you never know the curve balls that you may get and a project that is great on paper may prove a bit more tricky.  This happened to us on a project that BLG have funded and throughout they have supported us.  Our business likes to be collaborative and when we hit those tough moments it really felt like we were working as a team with BLG.  If you have a decent project you can get it funded, but what you really need is a business that is there to support and advise you as well.  For us on this project it was BLG.”

    “I approached BLG Development finance with an opportunity I had in Chesham, Buckinghamshire, to build 5 new build houses in 2021. My main contact was Anil Bains who is a Director covering Asset Management. Within very quick timescales, BLG provided me with indicative quotes in regards the finance levels they could offer me. Having considered those levels, I requested a valuation to be carried out which again was dealt with swiftly. We proceeded to completion. The build went very smoothly with monthly monitoring being carried out by BLG and monthly drawdown requests dealt with in a very timely manner. Due to a difficult time generally in the market in regards selling, I was in need of a six-month extension to the loan which again was appraised very quickly and granted. Having dealt with numerous funders over the last 20 years, I can only speak highly of my personal experience with BLG and would very confidently work with them again on any future projects. “

    "From our side it has also been a pleasure working with BLG and the team there. We have found you easy to deal with, proactive in resolving any minor issues that have arisen through the project and shown great flexibility in working with us as a partner. We will certainly like to work with you on future partners."

    “I really appreciate your hard work. We really like the way you communicate & I must say I haven't seen many people who are that approachable.”

    “A very efficient processing team, dealing with the DD once deal credit approved, through to completion”

    “Many thanks for your efforts on this one and getting it approved and sorted so swiftly, very much appreciated. I am sure I will be speaking to your over the coming months.”

    “We had other funding options, but chose to use BLG again, as we work well with the team, who always provide very clear information and advice with a friendly approach throughout the funding process. Very efficient and always very helpful.”

    “Many thanks Anil, it’s been a real pleasure working with BLG so far.  We’re lining up the next project too”

    “We would recommend all staff we have dealt with at BLG, as we are very satisfied with the team and the initial offer/terms presented, then you and the funding team, through to the draw down team at valuation stage.”

    “All documents are clear and the way you keep clients informed, all the way along the funding process, is refreshing for us”

    “With regard to what should be improved at BLG, we work with many lenders in our business and we do not get the help and response we have had on the two projects with all at BLG on our funding for our developments.”

    “We would particularly mention Dave Edwards and Tom Pitts as being central to having a smooth working relationship and being positive and helpful at all times. Their guidance in helping us navigate the project from inception to completion was invaluable. As was their patience, particularly at the beginning. We look forward to many future projects with the BLG team.”

    “We would like to express our appreciation for your support on our development in Bristol. We were very pleased that, from the outset, you shared our vision of the project to convert a dated but classical building, that had outlived its usefulness as a school, into unique luxury apartments with views overlooking the city. We found our dealings practical and streamlined. Monthly payments were processed in an efficient and timely manner.”

    “BLG are very good at communicating with clients and all documents are very clear and all at BLG are always happy to help.”

    Tell us how we can help you.

    Recovery Loan Scheme (RLS)

    Recovery Loan Scheme (RLS)

    by | Oct 18, 2022

    From 1st July 2024, the Recovery Loan Scheme has been extended and rebranded to the Growth Guarantee Scheme. Get more information on the Growth Guarantee Scheme.

     

    What is the Recovery Loan Scheme (RLS)?

     

    The new iteration of the Recovery Loan Scheme (RLS) launched in August 2022 and is designed to support access to finance for UK small businesses as they look to invest and grow.

    The Recovery Loan Scheme aims to improve the terms on offer to borrowers. If a lender can offer a commercial loan on better terms, they will do so.

    Businesses that took out a CBILS, CLBILS, BBLS or RLS facility before 30 June 2022 are not prevented from accessing RLS from August 2022, although in some cases it may reduce the amount a business can borrow.

    Recovery Loan Scheme-backed facilities are provided at the discretion of the lender. Lenders are required to undertake their standard credit and fraud checks for all applicants.

     

    Proud to be supporting British businesses

    BLG specialises in providing property development finance to UK SME property developers. We are delighted to receive accreditation from the British Business Bank as a lender under the Recovery Loan Scheme (RLS).

    We are proud to be supporting British businesses navigate through these uncertain times by providing property-secured loans through this government-backed scheme.

    We will be offering development finance through the RLS scheme with flexible loan structures to support individual requirements.

    To discuss your Recovery Loan Scheme (RLS) requirements, please email us at [email protected] or call us to discuss.

    Get In Touch

    Scheme Features

     

      • Up to £2 million facility per business group: The maximum amount of a facility provided under the scheme is £2 million per business group for borrowers outside the scope of the Northern Ireland Protocol, and up to £1 million per business group for Northern Ireland Protocol borrowers.
      • Term length: BLG offer term loans from 12 months up to 2 years.
      • Personal Guarantees: Personal guarantees can be taken at the lender’s discretion, in line with their normal commercial lending practices. Principal Private Residences cannot be taken as security within the Scheme.
      • Guarantee is to the lender: The scheme provides the lender with a 70% government-backed guarantee against the outstanding balance of the facility after it has completed its normal recovery process. The borrower always remains 100% liable for the debt.
      • Subsidy: The assistance provided through RLS, like many Government-backed business support activities, is regarded as a subsidy and is deemed to benefit the borrower. There is a limit to the amount of subsidy that may be received by a borrower, and its wider group, over any rolling two-year period. Any previous subsidy may reduce the amount a business can borrow.
      • All borrowers in receipt of a subsidy from a publicly-funded programme should be provided with a written statement, confirming the level and type of aid received.
      • Borrowers will need to provide written confirmation that receipt of the RLS facility will not mean that the business exceeds the maximum amount of subsidy they are allowed to receive.
        – Northern Ireland Protocol: All borrowers will need to answer some questions to determine whether they are inside or outside the scope of the Northern Ireland Protocol, to determine the relevant subsidy limit and hence the potential maximum amount they can borrow under RLS.
        BLG’s RLS funding is dedicated to supporting UK SME property developers in development finance. We do not offer cashflow loans under RLS.

     

     

    Eligibility Criteria

     

    • Turnover limit: The scheme is open to smaller businesses with a turnover of up to £45m (on a group basis, where part of a group).

    • UK-based: The borrower must be carrying out trading activity in the UK. No Covid-19 impact test required: Unlike with the previous phases of the scheme, for most borrowers there is no requirement to confirm they have been affected by Covid-19. For charities and Further Education colleges, confirmation of Covid-19 impact will still be required in some instances.

    • Viability test: The lender will consider that the borrower has a viable business proposition but may disregard any concerns over its short-to-medium term business performance due to the uncertainty and impact of Covid-19.
    • Business in difficulty: The borrower must not be a business in difficulty, including not being in relevant insolvency proceedings.
    • Purpose: the facility must be used to support trading in the UK and cannot be used to support certain export related activities. There are certain restrictions on the use of proceeds of facilities in the agriculture, fisheries and aquiculture, and road freight transport sectors for borrowers impacted by the Northern Ireland.
      Please note, the following are not eligible under RLS:      – Banks, Building Societies, Insurers and Reinsurers (excluding Insurance Brokers)
      – Public sector bodies
      – State funded primary and secondary schoolsYou will need to provide certain documents when you apply for an RLS-backed facility. Please refer to our Lending Criteria for general requirements.Decision-making on whether a business is eligible for RLS is fully delegated to the British Business Bank’s accredited RLS lenders. For more information on our Recovery Loan Scheme support for development finance, please contact us to discuss.

    Business Finance Support

    The British Business Bank has a range of guidance and resources available to all businesses, including content on managing your cashflow and a list of independent advice services.

    See further guidance and resources

    The Recovery Loan Scheme is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA.

    Visit http://www.british-business-bank.co.uk/recovery-loan-scheme

    Need to know more?

    To discuss your Recovery Loan Scheme (RLS) requirements, please email us at [email protected] or call us to discuss.

    Get In Touch

    WHAT OUR CUSTOMERS SAY ABOUT US

    "A challenging site like no other with every inch of the plot being built on and 12 apartments built-out through a driveway 2.5m wide off of a main high street with limited access rights, not to mention all the complexities associated with 13 Party Wall Agreements. Most lenders would not have had the vision for the scheme or the confidence in Spiller Builders to build out the scheme.  I just wanted to say how helpful the entire BLG team have been during the build. A very approachable and knowledgeable team, with a “can do” approach to lending. We will be looking to do more business with you for sure."

    “We have used BLG for development finance for over 8 years. During that time we have found their knowledge and expertise in the property development industry to be second to none. Their loan process, pragmatic and flexible approach to lending and flexibility when required has supported our business needs throughout the period and provided us with support to deliver new homes in Bristol and the surrounding areas.”

    “As property developers you never know the curve balls that you may get and a project that is great on paper may prove a bit more tricky.  This happened to us on a project that BLG have funded and throughout they have supported us.  Our business likes to be collaborative and when we hit those tough moments it really felt like we were working as a team with BLG.  If you have a decent project you can get it funded, but what you really need is a business that is there to support and advise you as well.  For us on this project it was BLG.”

    “I approached BLG Development finance with an opportunity I had in Chesham, Buckinghamshire, to build 5 new build houses in 2021. My main contact was Anil Bains who is a Director covering Asset Management. Within very quick timescales, BLG provided me with indicative quotes in regards the finance levels they could offer me. Having considered those levels, I requested a valuation to be carried out which again was dealt with swiftly. We proceeded to completion. The build went very smoothly with monthly monitoring being carried out by BLG and monthly drawdown requests dealt with in a very timely manner. Due to a difficult time generally in the market in regards selling, I was in need of a six-month extension to the loan which again was appraised very quickly and granted. Having dealt with numerous funders over the last 20 years, I can only speak highly of my personal experience with BLG and would very confidently work with them again on any future projects. “

    "From our side it has also been a pleasure working with BLG and the team there. We have found you easy to deal with, proactive in resolving any minor issues that have arisen through the project and shown great flexibility in working with us as a partner. We will certainly like to work with you on future partners."

    “I really appreciate your hard work. We really like the way you communicate & I must say I haven't seen many people who are that approachable.”

    “A very efficient processing team, dealing with the DD once deal credit approved, through to completion”

    “Many thanks for your efforts on this one and getting it approved and sorted so swiftly, very much appreciated. I am sure I will be speaking to your over the coming months.”

    “We had other funding options, but chose to use BLG again, as we work well with the team, who always provide very clear information and advice with a friendly approach throughout the funding process. Very efficient and always very helpful.”

    “Many thanks Anil, it’s been a real pleasure working with BLG so far.  We’re lining up the next project too”

    “We would recommend all staff we have dealt with at BLG, as we are very satisfied with the team and the initial offer/terms presented, then you and the funding team, through to the draw down team at valuation stage.”

    “All documents are clear and the way you keep clients informed, all the way along the funding process, is refreshing for us”

    “With regard to what should be improved at BLG, we work with many lenders in our business and we do not get the help and response we have had on the two projects with all at BLG on our funding for our developments.”

    “We would particularly mention Dave Edwards and Tom Pitts as being central to having a smooth working relationship and being positive and helpful at all times. Their guidance in helping us navigate the project from inception to completion was invaluable. As was their patience, particularly at the beginning. We look forward to many future projects with the BLG team.”

    “We would like to express our appreciation for your support on our development in Bristol. We were very pleased that, from the outset, you shared our vision of the project to convert a dated but classical building, that had outlived its usefulness as a school, into unique luxury apartments with views overlooking the city. We found our dealings practical and streamlined. Monthly payments were processed in an efficient and timely manner.”

    “BLG are very good at communicating with clients and all documents are very clear and all at BLG are always happy to help.”

    Tell us how we can help you.

    Residential Development Finance

    Residential Development Finance

    by | Mar 15, 2021

    Residential Property Development Finance Lenders

    We offer extensive experience to assist residential developers in navigating the challenges often posed by traditional high street banks. Our expertise enables us to provide tailored financial solutions that empower you to secure the funds required for purchasing land and constructing various types of properties, including houses, flats, eco-homes, and mixed-use buildings.

    In addition to initial development financing, our residential development finance options include access to top-up funds and refinancing solutions for existing residential development loans, specifically designed for build-to-let landlords. We are committed to offering the financial support you need to advance your residential projects and achieve your development goals efficiently.

    Residential Development Loans

    • Provides bespoke residential property funding solutions for residential developers across the UK
    • Suitable for building or converting one home or hundreds, we will help you choose the right solution to help you build while maximising your profit.
    • Available to housebuilders, developers and intermediaries on competitive terms
    • Decisions made quickly so that developers can move quickly to purchase and secure their site or, if the site is already owned, to begin the building works.
    Enquire About Our Bespoke Finance Options

    Choose Funding For Your Next Project:

    Stretch Senior Development Finance

    Loans up to 85% of costs (90% including rolled-up interest), from £1,000,000 to £15,000,000. Our most popular solution.

    Learn About Stretch Senior Finance

    Build To Let Development Finance

    Funding for letting/private sector rental for professional landlords. Available for schemes with 3+ units. Lending up to 70% open market value or 75% restricted investment value.

    Learn About Build To Let Finance

    Lending Criteria

    Every BLG loan is structured to meet the requirements of your specific property developments but this general criteria typically applies.

    See Our Lending Criteria

    Mezzanine Development Finance

    BLG does not provide standalone mezzanine finance, we work with a focused panel of mezz providers who may offer additional top-up facilities for your property developments.

    Learn About Mezzanine Finance

    Typical Residential Property Funding Terms

    Most residential property funding ranges between £1 million to £15 million or more. The release of funds can be staggered over the project’s timeline, which is a popular financing option.

    A staggered release of the residential development loan keeps interest payments lower than accessing all the funds at the outset. The interest rates vary from lender to lender and are usually based on risk and the project’s size. Each lender views risk and project size differently, and we will help you find the option that makes the most sense for you.

    The residential property development loan term usually has a duration of 12 to 24 months. However, it can take several weeks to complete the application process and secure the funding, so it is best to apply as early as possible. If you have a tight deadline, please let us know.

    We offer residential property funding to individuals, limited companies, partnerships, LLPs, and overseas borrowers with a UK limited company.

    Repaying Residential Development Loan

    At the end of the loan term, you will need to pay back your loan. This usually happens under one of three scenarios.

    1. You may sell the homes or flats and use the sale to pay back the loan, leaving you with your profit.
    2. Refinance the units with a buy to let mortgage if you are intending to let out the properties and build a property portfolio.
    3. A development exit finance, which is a short-term loan with a lower interest rate. This option is ideal for projects where a buyer is not in place, and you will need time to market and sell the properties, beyond the timescale of your original loan.

    Secure Your Finance

    Whether you are looking for stretch senior development finance, commercial development finance, or build to let development finance, BLG is ready to help you secure the residential property development loan you need. We also help arrange mezzanine development finance working with third-party mezzanine funding providers.

    BLG has a patient team of experts ready to help. We offer support from pre‐sale to purchase and completion. Our goal is to help you build, so contact our team today to find the right residential development loans to suit your needs.

    What Our Customers Think

    "A challenging site like no other with every inch of the plot being built on and 12 apartments built-out through a driveway 2.5m wide off of a main high street with limited access rights, not to mention all the complexities associated with 13 Party Wall Agreements. Most lenders would not have had the vision for the scheme or the confidence in Spiller Builders to build out the scheme.  I just wanted to say how helpful the entire BLG team have been during the build. A very approachable and knowledgeable team, with a “can do” approach to lending. We will be looking to do more business with you for sure."

    “We have used BLG for development finance for over 8 years. During that time we have found their knowledge and expertise in the property development industry to be second to none. Their loan process, pragmatic and flexible approach to lending and flexibility when required has supported our business needs throughout the period and provided us with support to deliver new homes in Bristol and the surrounding areas.”

    “As property developers you never know the curve balls that you may get and a project that is great on paper may prove a bit more tricky.  This happened to us on a project that BLG have funded and throughout they have supported us.  Our business likes to be collaborative and when we hit those tough moments it really felt like we were working as a team with BLG.  If you have a decent project you can get it funded, but what you really need is a business that is there to support and advise you as well.  For us on this project it was BLG.”

    “I approached BLG Development finance with an opportunity I had in Chesham, Buckinghamshire, to build 5 new build houses in 2021. My main contact was Anil Bains who is a Director covering Asset Management. Within very quick timescales, BLG provided me with indicative quotes in regards the finance levels they could offer me. Having considered those levels, I requested a valuation to be carried out which again was dealt with swiftly. We proceeded to completion. The build went very smoothly with monthly monitoring being carried out by BLG and monthly drawdown requests dealt with in a very timely manner. Due to a difficult time generally in the market in regards selling, I was in need of a six-month extension to the loan which again was appraised very quickly and granted. Having dealt with numerous funders over the last 20 years, I can only speak highly of my personal experience with BLG and would very confidently work with them again on any future projects. “

    "From our side it has also been a pleasure working with BLG and the team there. We have found you easy to deal with, proactive in resolving any minor issues that have arisen through the project and shown great flexibility in working with us as a partner. We will certainly like to work with you on future partners."

    “I really appreciate your hard work. We really like the way you communicate & I must say I haven't seen many people who are that approachable.”

    “A very efficient processing team, dealing with the DD once deal credit approved, through to completion”

    “Many thanks for your efforts on this one and getting it approved and sorted so swiftly, very much appreciated. I am sure I will be speaking to your over the coming months.”

    “We had other funding options, but chose to use BLG again, as we work well with the team, who always provide very clear information and advice with a friendly approach throughout the funding process. Very efficient and always very helpful.”

    “Many thanks Anil, it’s been a real pleasure working with BLG so far.  We’re lining up the next project too”

    “We would recommend all staff we have dealt with at BLG, as we are very satisfied with the team and the initial offer/terms presented, then you and the funding team, through to the draw down team at valuation stage.”

    “All documents are clear and the way you keep clients informed, all the way along the funding process, is refreshing for us”

    “With regard to what should be improved at BLG, we work with many lenders in our business and we do not get the help and response we have had on the two projects with all at BLG on our funding for our developments.”

    “We would particularly mention Dave Edwards and Tom Pitts as being central to having a smooth working relationship and being positive and helpful at all times. Their guidance in helping us navigate the project from inception to completion was invaluable. As was their patience, particularly at the beginning. We look forward to many future projects with the BLG team.”

    “We would like to express our appreciation for your support on our development in Bristol. We were very pleased that, from the outset, you shared our vision of the project to convert a dated but classical building, that had outlived its usefulness as a school, into unique luxury apartments with views overlooking the city. We found our dealings practical and streamlined. Monthly payments were processed in an efficient and timely manner.”

    “BLG are very good at communicating with clients and all documents are very clear and all at BLG are always happy to help.”

    Projects Funded With Residential Development Loans From BLG​

    Funding for New Client Facing Project Challenges
    Completed residential development finance case study - exterior shot of property
    Executive Houses Completed Ahead of Schedule and Exceeded Sales Predictions
    Buckinghamshire executive houses development Case Study
    Second Loan to Support Previous CBILS Client on 21-Unit Scheme in Cheddar
    Cheddar Gorge 21-unit development Case Study
    Ambitious Build Project with Severely Restricted Site Access in Portishead
    46 Apartments with Ground Floor Commercial Space in Bury St Edmunds
    Image of the 46 Apartments with Ground Floor Commercial Space in Bury St Edmunds the outside of the building
    Part Built Site with Complication in Canford Cliffs, Poole
    Developer Exit Loan, Modern Houses in Southwest London with Distinctive Design
    Modern house with brickwork, large windows and balconies
    Waterfront Houses with Private Access to the Beach
    Modern houses with large glass windows
    BLG Helps Developer Overcome Planning Issues
    Wooden fronted terraced houses
    Block of Flats in Sought-After Area, Purley
    front of a 3 storey block of flats
    Centrepiece with Stylish Design, Croydon
    Stylish house with white bricks and wooden cladding
    Stunning Somerset Farmstead Conversion
    watercolour picture of Willstock Farm Cottages

    Stretch Senior Development Finance

    Stretch Senior Development Finance

    by | May 31, 2019

    Stretch Senior Loans

    Our Stretch senior development finance loans offer a diverse range of funding solutions designed to support and expand your development efforts. We provide financial backing covering up to 90% including rolled-up interest. Additionally, we offer financing up to 75% of the gross development value, when accounting for rolled-up interest. Our offered rates are negotiable based on the complexity and debt quantum of any individual project.

    We offer senior loans ranging from £1,000,000 to £15,000,000, providing the flexibility needed to match your project’s scale and requirements. Our financing solutions cater to projects with timelines of up to 24 months, accommodating both large-scale developments and smaller ventures. Whether you’re embarking on a major development or a more modest project, our stretch senior loans are designed to provide the robust financial support necessary to advance your goals and bring your vision to life.

    24 months

    Loan terms up to 24 months

    90%

    ​Up to 90% funding

    £15,000,000

    Loans from £1,000,000 to £15,000,000

    two men stood discussing large brick property
    Farmhouse Scheme in Cambridge (CBILS)
    White brick and wooden house

    What Exactly Is Stretch Senior Debt?

    At first glance, the concept of a stretch finance loan, sometimes referred to as an over advance loan, might seem intricate, but its essence is quite straightforward. These specialised financing options are crafted by experts in the realm of property development finance, such as BLG, to provide property developers with access to a higher level of financial support.

    Stretch senior debt distinguishes itself by typically offering a more substantial loan-to-cost or loan-to-value ratio than what is conventionally available from mainstream lenders and banks. For instance, while traditional banks might extend loans covering up to 60% of project costs, our stretch senior loans are accessible for up to 90% of project costs, with the potential to reach 90% when considering rolled-up interest. Another perspective on stretch senior development finance is that it can encompass up to 65% of the Gross Development Value, potentially increasing to 75% when rolled-up interest is factored in.

    In practical terms, this means that while conventional banks and high street lenders may expect property developers to inject cash equivalent to 40% of project costs into the venture, we offer the flexibility for developers to contribute as little as 13% of their project expenses when incorporating rolled-up interest. This approach empowers developers to leverage their resources more efficiently and optimize their capital allocation for their development projects.

    ​What Are The Key Features Of Stretched Senior Debt?

    One of the primary features of Stretched Senior Debt is the higher loan-to-value (LTV) ratio it offers. While traditional senior debt loans typically have an LTV ratio of around 60% to 65%, Stretched Senior Debt can provide financing up to 70% LTV or even higher. This increased leverage allows developers to secure more funds for their projects and reduces the amount of equity they need to contribute.

    What Is Senior Development Finance Used For?

    Our stretch senior debt can be used for a wide range of residential developments, including houses, apartments, new builds, and conversions. Our development finance solutions extend to mixed-use schemes, accommodating projects in both urban and rural locations across the UK. We aim to support developments in areas with strong demand, enabling you to capitalise on market opportunities. Whether you’re planning a small-scale project or a large-scale endeavour. There are no restrictions on the number of units you can develop. Our stretch senior finance is tailored to meet the diverse needs of residential developers, providing the necessary funding to bring your projects to fruition.

    What Are The Stretched Senior Debt Lending Criteria?

    Development Demand: One crucial criterion is the location of the development project. Lenders look for projects in areas with clear sales demand, ensuring that there is a market for the developed properties. Factors such as population growth, economic indicators, market trends, and demand for real estate in the area are assessed to determine the viability of the project.

    Loan-to-Cost Ratio: Lenders consider the loan-to-cost (LTC) ratio when evaluating Stretched Senior Debt applications. The LTC ratio represents the loan amount as a percentage of the total project cost, including land acquisition, construction costs, and other related expenses. Lenders typically have their own predetermined limits for the LTC ratio, and the proposed loan amount must fall within this range to be eligible for Stretched Senior Debt financing.

    Why Is Stretch Senior Development Finance Helpful For Property Developers?

    Property developers and house builders find this higher leverage lending helpful as it means they do not need to provide such a large percentage of funding themselves. This not only helps with cash flow, for many it allows the opportunity to build more than one development project at a time.

    What Information Would I Need To Provide?

    • Applicant company name and details
    • Directors & significant shareholders details
    • Full site/property address details
    • Copy of the planning consent
    • Financial appraisal and cash-flow
    • Detailed build costs
    • Details of the professional team such as architect and structural engineer
    • Procurement method such as construction management
    • Any comparable sales information to support the proposed GDV

    A senior stretch loan is quick, efficient, and convenient, giving you access to more finance while only dealing with one lender.

    A senior stretch loan is quick, efficient, and convenient, giving you access to more finance while only dealing with one lender. We also offer build to let and mezzanine development finance all for residential projects. Contact us today to be put in touch with your local BLG Regional Director who will be happy to discuss your property development funding requirements.

    Contact Us Today

      Projects Funded With Stretch Senior Loans From BLG​

      19 New Build Apartments in Islington
      concept drawing of a four storey apartment block
      423 New Flats as a Mill Conversion in Leeds
      Mill Conversion
      3 Light & Airy Apartments in London
      Hackney road 1
      23 Modern Townhouses, Devon
      Grove Homes web 1
      Luxurious estate development, Dorset
      two men stood discussing large brick property
      45 townhouses & 36 flats, Manchester
      Rendering of a courtyard area of a series of townhouses
      Cul de sac development, Cheshire
      Housing estate under construction
      Historic mill conversion, Leeds
      Jubilee mill, Batley, surrounded by scaffolding
      8 new high-spec homes, Southampton
      House under construction, surrounded by scaffolding
      Beautiful new homes, Woodford Green
      Large detached property with dormer windows and central doorway
      5 new townhouses, Kent
      Block of townhouses on a street corner
      8 stunning new homes, Somerset
      Row of houses with open parking space in front

      WHAT OUR CUSTOMERS SAY ABOUT US

      "A challenging site like no other with every inch of the plot being built on and 12 apartments built-out through a driveway 2.5m wide off of a main high street with limited access rights, not to mention all the complexities associated with 13 Party Wall Agreements. Most lenders would not have had the vision for the scheme or the confidence in Spiller Builders to build out the scheme.  I just wanted to say how helpful the entire BLG team have been during the build. A very approachable and knowledgeable team, with a “can do” approach to lending. We will be looking to do more business with you for sure."

      “We have used BLG for development finance for over 8 years. During that time we have found their knowledge and expertise in the property development industry to be second to none. Their loan process, pragmatic and flexible approach to lending and flexibility when required has supported our business needs throughout the period and provided us with support to deliver new homes in Bristol and the surrounding areas.”

      “As property developers you never know the curve balls that you may get and a project that is great on paper may prove a bit more tricky.  This happened to us on a project that BLG have funded and throughout they have supported us.  Our business likes to be collaborative and when we hit those tough moments it really felt like we were working as a team with BLG.  If you have a decent project you can get it funded, but what you really need is a business that is there to support and advise you as well.  For us on this project it was BLG.”

      “I approached BLG Development finance with an opportunity I had in Chesham, Buckinghamshire, to build 5 new build houses in 2021. My main contact was Anil Bains who is a Director covering Asset Management. Within very quick timescales, BLG provided me with indicative quotes in regards the finance levels they could offer me. Having considered those levels, I requested a valuation to be carried out which again was dealt with swiftly. We proceeded to completion. The build went very smoothly with monthly monitoring being carried out by BLG and monthly drawdown requests dealt with in a very timely manner. Due to a difficult time generally in the market in regards selling, I was in need of a six-month extension to the loan which again was appraised very quickly and granted. Having dealt with numerous funders over the last 20 years, I can only speak highly of my personal experience with BLG and would very confidently work with them again on any future projects. “

      "From our side it has also been a pleasure working with BLG and the team there. We have found you easy to deal with, proactive in resolving any minor issues that have arisen through the project and shown great flexibility in working with us as a partner. We will certainly like to work with you on future partners."

      “I really appreciate your hard work. We really like the way you communicate & I must say I haven't seen many people who are that approachable.”

      “A very efficient processing team, dealing with the DD once deal credit approved, through to completion”

      “Many thanks for your efforts on this one and getting it approved and sorted so swiftly, very much appreciated. I am sure I will be speaking to your over the coming months.”

      “We had other funding options, but chose to use BLG again, as we work well with the team, who always provide very clear information and advice with a friendly approach throughout the funding process. Very efficient and always very helpful.”

      “Many thanks Anil, it’s been a real pleasure working with BLG so far.  We’re lining up the next project too”

      “We would recommend all staff we have dealt with at BLG, as we are very satisfied with the team and the initial offer/terms presented, then you and the funding team, through to the draw down team at valuation stage.”

      “All documents are clear and the way you keep clients informed, all the way along the funding process, is refreshing for us”

      “With regard to what should be improved at BLG, we work with many lenders in our business and we do not get the help and response we have had on the two projects with all at BLG on our funding for our developments.”

      “We would particularly mention Dave Edwards and Tom Pitts as being central to having a smooth working relationship and being positive and helpful at all times. Their guidance in helping us navigate the project from inception to completion was invaluable. As was their patience, particularly at the beginning. We look forward to many future projects with the BLG team.”

      “We would like to express our appreciation for your support on our development in Bristol. We were very pleased that, from the outset, you shared our vision of the project to convert a dated but classical building, that had outlived its usefulness as a school, into unique luxury apartments with views overlooking the city. We found our dealings practical and streamlined. Monthly payments were processed in an efficient and timely manner.”

      “BLG are very good at communicating with clients and all documents are very clear and all at BLG are always happy to help.”

      Tell us how we can help you.

      Bridging Loans

      Bridging Loans

      by | May 28, 2019

      Bridging Loans For Property Developments

      Bridging loans serve as a valuable financing tool for property developers embarking on new development ventures. These short-term loans offer a quick and flexible solution, providing the necessary capital to cover initial costs such as land acquisition, planning permissions, and early construction expenses. This financial support allows developers to kickstart their projects without delay, ensuring that progress can begin immediately.

      By securing a bridging loan, developers can maintain momentum while they arrange more permanent, long-term financing solutions. This can be particularly advantageous in competitive markets where opportunities need to be seized quickly. Furthermore, bridging loans can be tailored to meet the specific needs of each project, offering a customised approach that aligns with the unique timeline and financial requirements of the development.

      They not only facilitate the early stages of property development but also enhance a developer’s ability to act swiftly and efficiently. This makes them an essential component in the toolkit of any property developer looking to navigate the complexities of project financing with confidence and agility.

       

       

      12 months

      Loan term is typically up to 12 months but longer term can be considered

      75%

      ​Loan to Values generally up to 75% including interest

      £10,000,000

      Loans from £500,000 to £10,000,000
      Bridging Loans
      Brewery Meadows building
      Multiple houses under development

      Typical Guidelines

      • Loans from £500k to £10m
      • Generally, loan term up to 12 months but longer term can be considered
      • Loan to Values considered on a case-by-case basis but generally up to 75% including interest
      • Rates negotiable on complexity and debt quantum based upon a 5% annual BLG base rate
      • Existing projects that have reached practical completion

      As a leading lender specialising in property finance, our expertise encompasses a wide range of funding options, including residential and commercial development finance and GGS funding supported by the British Business Bank. Contact a BLG team member today to find out more on how BLG can help your next project.

      Typical Uses for Bridging Loans

      Our Bridging Loans offer a quick and flexible solution, providing the necessary capital to cover initial costs such as land acquisition and planning permissions ahead of the construction and development of new buildings. This financial support allows developers to kickstart their projects without delay, ensuring that progress can begin immediately.

      Throughout the housebuilding lifecycle, BLG provides a high level of support to its clients, including ongoing advice and guidance on market trends, financing options, and exit strategies.

      BLG offer bridging loans for the following purposes:

      • To acquire a new development site. This can include financing for land acquisition, site preparation, and planning permissions. We can even potentially help if the site has a limited or imperfect planning consent, working with developers to find creative solutions to financing challenges.
      • To release funding from an existing transaction to make new investments. BLG can provide finance solutions to help developers release funds from existing projects and reinvest them in new opportunities.
      • To release funds on completed developments for cashflow or other business needs. We can provide development exit loans to help developers release funds from completed developments for cashflow or other business needs. This can help developers to reduce finance costs, manage their cashflow more effectively, and fund their next project.
      • BLG can provide short to medium-term finance solutions for commercial or other property assets. This can help businesses to meet their funding requirements and manage their cashflow more effectively.

      ​

      Contact Us Today

        Projects Funded With Bridging Loans From BLG​

        Bridging Loan for Victorian Terrace House in Battersea
        Kitchen with island and dining table

        WHAT OUR CUSTOMERS SAY ABOUT US

        "A challenging site like no other with every inch of the plot being built on and 12 apartments built-out through a driveway 2.5m wide off of a main high street with limited access rights, not to mention all the complexities associated with 13 Party Wall Agreements. Most lenders would not have had the vision for the scheme or the confidence in Spiller Builders to build out the scheme.  I just wanted to say how helpful the entire BLG team have been during the build. A very approachable and knowledgeable team, with a “can do” approach to lending. We will be looking to do more business with you for sure."

        “We have used BLG for development finance for over 8 years. During that time we have found their knowledge and expertise in the property development industry to be second to none. Their loan process, pragmatic and flexible approach to lending and flexibility when required has supported our business needs throughout the period and provided us with support to deliver new homes in Bristol and the surrounding areas.”

        “As property developers you never know the curve balls that you may get and a project that is great on paper may prove a bit more tricky.  This happened to us on a project that BLG have funded and throughout they have supported us.  Our business likes to be collaborative and when we hit those tough moments it really felt like we were working as a team with BLG.  If you have a decent project you can get it funded, but what you really need is a business that is there to support and advise you as well.  For us on this project it was BLG.”

        “I approached BLG Development finance with an opportunity I had in Chesham, Buckinghamshire, to build 5 new build houses in 2021. My main contact was Anil Bains who is a Director covering Asset Management. Within very quick timescales, BLG provided me with indicative quotes in regards the finance levels they could offer me. Having considered those levels, I requested a valuation to be carried out which again was dealt with swiftly. We proceeded to completion. The build went very smoothly with monthly monitoring being carried out by BLG and monthly drawdown requests dealt with in a very timely manner. Due to a difficult time generally in the market in regards selling, I was in need of a six-month extension to the loan which again was appraised very quickly and granted. Having dealt with numerous funders over the last 20 years, I can only speak highly of my personal experience with BLG and would very confidently work with them again on any future projects. “

        "From our side it has also been a pleasure working with BLG and the team there. We have found you easy to deal with, proactive in resolving any minor issues that have arisen through the project and shown great flexibility in working with us as a partner. We will certainly like to work with you on future partners."

        “I really appreciate your hard work. We really like the way you communicate & I must say I haven't seen many people who are that approachable.”

        “A very efficient processing team, dealing with the DD once deal credit approved, through to completion”

        “Many thanks for your efforts on this one and getting it approved and sorted so swiftly, very much appreciated. I am sure I will be speaking to your over the coming months.”

        “We had other funding options, but chose to use BLG again, as we work well with the team, who always provide very clear information and advice with a friendly approach throughout the funding process. Very efficient and always very helpful.”

        “Many thanks Anil, it’s been a real pleasure working with BLG so far.  We’re lining up the next project too”

        “We would recommend all staff we have dealt with at BLG, as we are very satisfied with the team and the initial offer/terms presented, then you and the funding team, through to the draw down team at valuation stage.”

        “All documents are clear and the way you keep clients informed, all the way along the funding process, is refreshing for us”

        “With regard to what should be improved at BLG, we work with many lenders in our business and we do not get the help and response we have had on the two projects with all at BLG on our funding for our developments.”

        “We would particularly mention Dave Edwards and Tom Pitts as being central to having a smooth working relationship and being positive and helpful at all times. Their guidance in helping us navigate the project from inception to completion was invaluable. As was their patience, particularly at the beginning. We look forward to many future projects with the BLG team.”

        “We would like to express our appreciation for your support on our development in Bristol. We were very pleased that, from the outset, you shared our vision of the project to convert a dated but classical building, that had outlived its usefulness as a school, into unique luxury apartments with views overlooking the city. We found our dealings practical and streamlined. Monthly payments were processed in an efficient and timely manner.”

        “BLG are very good at communicating with clients and all documents are very clear and all at BLG are always happy to help.”

        Tell us how we can help you.

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