FundingRound

When Speed Matters

admin — Sat, 07 Nov 2026 15:58:41 +0000

Unregulated bridging loans: when does speed justify the cost?

Sometimes the challenge with a property purchase is not whether the numbers work, but whether you can complete within the timescale available. You may have found the right commercial property at the right price, yet the deadline leaves limited time to arrange the finance.
An auction purchase is a good example. With completion required within the period set out in the auction conditions, a conventional commercial mortgage may not fit the timetable. This is where businesses and property investors may start considering an unregulated bridging loan. Before proceeding, however, it is important to understand how the borrowing works, what it will cost and how it will be repaid.

What is an unregulated bridging loan?

An unregulated bridging loan is a short-term loan secured against property or land where the borrowing falls outside the FCA’s regulated mortgage regime. Whether a loan is regulated depends on the borrower, how the property will be used and the structure of the transaction, so the position needs to be considered for the individual circumstances rather than assumed from the property description alone.
“Unregulated” does not mean there are no rules or that lenders do not assess the transaction. They will still consider the borrower, the property, the amount required and how the loan will be repaid. An FCA-authorised broker or lender may also arrange or provide finance that falls outside the regulated mortgage regime, so it is important to understand which protections apply to the proposed agreement.

When can commercial bridging finance make sense?

Commercial bridging finance can be useful where a transaction has a genuine deadline and longer-term finance cannot be arranged within it. For an auction purchase, for example, a commercial mortgage may be suitable for the eventual borrowing, but the lender’s underwriting, valuation and legal work may take longer than the completion timetable allows.
That does not necessarily mean the bank has rejected the business or the property. Sometimes the issue is simply that the finance process and the required timescale do not line up. Bridging finance may provide an interim route, subject to the lender’s assessment and the necessary work being completed.
Speed alone, however, is not a reason to use it. The cost of borrowing needs to be justified by the transaction, with a realistic repayment plan and enough room to manage potential delays. It is also worth assessing whether another funding route, or an agreed change to the timetable where possible, would better support the purchase.

What should you consider beyond the interest rate?

The headline interest rate is only one part of the cost. Depending on the facility, there may also be arrangement fees, valuation costs, legal fees, broker fees and exit charges. These should be considered together over the period you expect to use the loan.
How interest is charged matters too. It may be paid during the term, retained from the advance or added to the amount repayable, depending on the agreement. This can affect both the funds available to complete the transaction and the amount needed to repay the borrowing.
It is sensible to consider what happens if the property takes longer to sell or the intended refinance is delayed. Additional interest, extension terms or other charges could affect the overall return, and an extension should never be assumed. Before proceeding, you should understand the repayment deadline and the consequences of being unable to meet it.

Why an exit strategy matters for bridging finance

An exit strategy is the plan for repaying the loan. That might involve selling the property, refinancing onto longer-term commercial finance or using another clearly identified source of funds. It needs to be realistic within the agreed term and supported by more than an expectation that circumstances will improve.
If repayment depends on refinancing, consider what the future lender will need to see. The property’s condition, valuation, rental income or the trading business’s financial position may all be relevant, depending on the proposed borrowing. Any work needed to meet those requirements should be factored into the timetable from the outset.
Being able to complete quickly is only part of the decision. There also needs to be a credible repayment route, alongside consideration of how the loan would be repaid if the planned sale or refinance takes longer than expected.

When a property finance exit needs to change

In a previous case, a client had relocated a car dealership after operating from a city-centre site for 12 years. An agreed sale of the land subsequently collapsed during the Covid-19 pandemic, and the site was instead let to tenants. This change of use meant the existing development finance needed to be repaid within six months.
Arranging the replacement finance brought further challenges. The proposed refinance took two months to receive a lending decision, the valuation came in lower than expected and a tenant withdrew shortly before completion.
We worked with the existing lender to negotiate a longer, staged exit, helped put formal leases in place to support affordability and ultimately secured a long-term commercial investment mortgage. The client was able to refinance and avoid the land being auctioned by the existing lender.
Although this involved development finance rather than a bridging loan, it illustrates why the repayment route needs careful assessment and may need to be revisited when circumstances change. Our case study on refinancing a former car showroom site explains the situation and the work involved in more detail.

Is an unregulated bridging loan right for your business?

Unregulated bridging finance can be useful where there is a genuine time constraint, the overall cost makes commercial sense and there is a realistic exit strategy. Its suitability depends on the whole transaction, including what needs to happen after completion.
At FundingRound, we consider short-term bridging and longer-term commercial finance in the context of your property and business plans, including purchases at auction. Our property finance service helps assess the available routes and identify a structure suited to the circumstances.
If you are working towards an auction deadline or another time-sensitive property transaction, speaking to us early gives us more time to assess the options, understand what lenders will need and consider how the borrowing will be repaid. Contact FundingRound to discuss your plans.

Finance is subject to your circumstances and the lender’s assessment. Property used as security may be repossessed if you do not keep up repayments. You should understand the terms, costs and protections applicable to any proposed agreement and take independent legal advice before proceeding.

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Autumn Budget 2026: The devil is in the detail

Paul Green — Thu, 05 Nov 2026 15:12:25 +0000

The devil is in the detail

The Autumn Budget 2026

included measures intended to support parts of the business community, but for many established SMEs, the real impact will depend on how the changes affect their day-to-day costs, profitability and plans for investment.

There are opportunities within the announcements, particularly for businesses that qualify for targeted support and investment reliefs. However, increases in employment and transport costs, changes to tax allowances and the timing of new measures all need to be considered alongside the financial commitments a business already has.

In this independent review, Stephen Harrington looks beyond the Budget headlines to examine what the announcements could mean for SME owners. Using practical financial illustrations, he considers the potential impact on operating costs, cash flow, investment decisions, borrowing and longer-term business planning.

The key message is that the effect of the Budget will not be the same for every business.

Understanding which measures apply, when they take effect and how they interact with your existing financial position is essential before making decisions.

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Download our Autumn Budget 2026 overview to understand what has changed, what deserves closer attention and what you may need to consider when reviewing your business plans

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Autumn Budget 2026 for SMEs: what should business owners watch?

Paul Green — Fri, 23 Oct 2026 09:29:16 +0000

What could the upcoming Budget mean for your business plans?

The Autumn Budget on Wednesday 28 October arrives as UK businesses balance investment ambitions against rising costs, uncertain demand and pressure on cash flow. September’s CPI inflation rate of 3.5% adds to that uncertainty, affecting operating expenses, household spending and expectations for interest rates.

For SMEs, the important question is whether the Budget improves the conditions for growth or introduces further pressures. Individual announcements will matter, but their combined effect deserves attention.

Looking for the fuller picture? Download Stephen Harrington’s Autumn Budget 2026 Expert Guide for a more detailed look at the economic pressures, investment considerations and funding implications for SMEs.

Public finances and the scope for support

The Chancellor must balance taxation, spending and economic growth while maintaining confidence in the public finances. Pressure on government finances can restrict the scope for tax reductions, investment incentives and business support.

The Office for Budget Responsibility’s updated forecasts will help explain that balance. For businesses, the implications extend beyond taxation: financial market confidence can also influence the wider borrowing environment.

Costs, customers and commercial margins

Employment, energy, diesel and premises costs all affect profitability. When businesses cannot pass increases on to customers, the difference has to be absorbed through margins or productivity improvements.

A logistics company on fixed-price contracts, for example, may face higher fuel costs without being able to adjust its charges immediately. Meanwhile, pressure on household spending can weaken demand and travel through supply chains.

Business rates also deserve attention, particularly where moving into larger premises could mean losing existing relief. Expansion costs should include rates, utilities, fit-out and working capital alongside rent or mortgage payments.

Borrowing costs involve more than Bank Rate

Government bond yields, lender funding costs, borrower strength and available security all influence commercial finance pricing and availability.

For businesses considering property purchases, refinancing or capital expenditure, the reaction of financial markets to the Budget could therefore matter alongside individual tax measures.

Affordability should be tested against different trading conditions. A facility needs to remain manageable if sales weaken, customer payments slow or operating costs increase.

Investment allowances and the cash to invest

Capital allowances can reduce taxable profits when businesses purchase qualifying machinery, equipment or vehicles. They can improve the financial case for investment, but eligibility and timing depend on the relevant rules.

The distinction is straightforward: tax relief reduces the effective cost of investment; it does not provide the cash to pay for it.

A manufacturer buying machinery still needs to fund the purchase and cover day-to-day commitments before additional production generates income. Asset finance may help spread expenditure and preserve working capital, while the accountant advises on tax treatment.
The commercial return, timing and funding structure should remain central to the decision.

Longer-term plans still need attention

For owners considering retirement or shareholder exits, succession involves management continuity and funding as well as taxation. Unconfirmed proposals should not determine significant transactions.
Across Lincolnshire and the East Midlands, infrastructure, skills and regional investment also matter. The practical test is when announced support becomes accessible and whether it meets business needs.
Should businesses wait?

Waiting may be sensible where confirmed policy could materially change a transaction. However, postponing a sound investment can also mean lost orders, restricted capacity or delayed recruitment.

Owners should assess the expected return, cash-flow impact and suitability of funding arrangements before committing. Those considerations remain relevant whatever the Chancellor announces.

At FundingRound, we start with the business’s commercial objectives and financial position, then consider how appropriate funding could support its plans.

Download our pre-Budget Expert Guide for the fuller analysis, or speak to Stephen and the FundingRound team about your investment, refinancing or working capital requirements.

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Independent school finance: when your bank says no to expansion

Paul Green — Fri, 09 Oct 2026 13:45:27 +0000

When a school needs room to grow but its bank says no

For an independent school, growing demand does not automatically make expansion easy to finance. Purchasing additional premises, adapting buildings or creating more pupil places can require significant investment before the extra income begins to arrive. When a bank declines the application, the next step is to understand the reasons and explore whether another lender or a different funding structure could suit the school’s plans.

Two perspectives on the same opportunity

Our latest Expert Guide explores the position of a private school providing specialist education and support for children with special educational needs and disabilities (SEND). In its third year of trading, the school wanted to invest approximately £250,000 in classrooms, therapy space and specialist facilities.

Its bank had supported a property purchase the previous year, so approaching it again was a sensible first step. This time, however, the request was declined. The proposal did not fit that bank’s lending criteria.

The owner could see the opportunity to increase capacity and support more families. The bank needed to assess the risks of another substantial commitment, including construction costs, future income and the school’s ability to meet repayments throughout the project.

Neither view was unreasonable. They were looking at the same investment from different perspectives.

Understanding the funding gap

A strong reason to invest is an important starting point, but a lender also needs evidence of how the project will be delivered and repaid.

For a school, that means looking beyond the completed classrooms. Building payments may fall due before additional places can be offered. Staff may need to be recruited before pupil income increases. Existing borrowing and everyday running costs continue throughout.

An expansion that appears affordable once everything is operating could still create pressure during the months before completion.

That is why understanding the reason for a decline matters. A concern about construction risk calls for a different response from a concern about current affordability. Sending the same proposal elsewhere without addressing those questions may achieve very little.

Bringing the proposal together

This is where James and the FundingRound team can help. We start by understanding what the school wants to achieve, then examine the project through the questions a lender is likely to ask.

Recent accounts, current management information, existing borrowing, quotations, a realistic timetable and cash flow forecasts all help explain the proposal. Assumptions about additional pupils and fee income also need careful consideration.

Depending on the circumstances, different parts of the investment may suit different funding options. What matters is how the complete arrangement works for the school, including when repayments begin and how much room remains in its cash flow.

A wider choice of lenders can be useful, but it does not replace the need for a credible funding case. Sometimes the next step is an application. Sometimes it is strengthening the budget or revisiting the timing first.

Download the full Expert Guide

DOWNLOAD the full expert guide: **“When a school needs room to grow but its bank says no”**, explores these questions in more detail. It includes a comparison of the owner’s and lender’s perspectives, the broker’s role and answers to common questions about financing school expansion.

If you are planning investment in an education business, it offers a practical starting point for understanding what lenders may need to see before you commit to your next investment.

If it raises questions about your own plans, James and the FundingRound team would be happy to have an initial conversation.

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Could a changing market create opportunities for professional landlords?

Paul Green — Thu, 03 Sep 2026 10:38:15 +0000

The Renters’ Rights Act: could a changing market create opportunities for professional landlords?

When the Renters’ Rights Act came into force on 1 May 2026, much of the conversation understandably focused on the additional responsibilities facing landlords. Section 21 was abolished, most assured tenancies became periodic and the processes around rent increases, records and tenancy management became more structured.

For some landlords, particularly those with one or two properties acquired almost by accident, this may have added to the feeling that it is time to leave the market. That could include somebody who retained a former home or inherited a property without setting out to build a property business.

However, there is another side to the story.

The Act has not removed the need for good-quality rented homes. As some owners decide to sell, opportunities may emerge for experienced landlords, property companies and business owners prepared to approach property as a properly planned enterprise rather than a passive sideline.

A market already experiencing change

It would be misleading to suggest that every landlord selling a property is doing so because of the Renters’ Rights Act. Borrowing costs, taxation, maintenance and proposed energy-efficiency requirements have all influenced the market.
Even before implementation, the Government’s 2024 English Private Landlord Survey found that 31% of landlords surveyed planned to reduce their portfolio over the following two years. This included 16% who intended to sell all their properties, while only 7% planned to increase.

This does not mean there will be a flood of bargains. It does suggest that some suitable rental properties may come to market because their owners have made a strategic decision to exit, rather than because the property itself is unsuitable as an investment.
For a well-prepared buyer, that distinction matters.

Where could the opportunity lie?

An existing rental property may already have a tenant, a documented rental history and a clear record of costs. This can help when assessing its performance and discussing finance, although buying with a tenant in place requires careful legal and financial due diligence.

There may also be opportunities to acquire properties requiring improvement. A home with an outdated EPC, maintenance issues or poor presentation may be unattractive to somebody considering leaving the market. With appropriate purchase and refurbishment funding, another landlord may be able to improve its long-term lettability while creating a better-quality home for tenants. The objective should not simply be to collect more properties. It should be to build a stronger and more resilient portfolio.

A lower asking price does not automatically make something a good investment. Mortgage payments, tax, insurance, repairs, agent fees, licensing, void periods and future improvements all sit between the headline rental income and the actual return.

Preparation is becoming increasingly important

The changing market may favour landlords who understand their true net yield, keep reliable records, plan rent reviews and hold appropriate cash reserves. This does not only apply to large property companies. Somebody with two properties can operate extremely professionally, while a much larger portfolio can still be poorly managed.

Any acquisition should also be considered alongside the existing portfolio. Questions include how much equity is tied up, when current fixed rates expire, whether the portfolio still meets lender stress tests and what refurbishment expenditure may be required.
This may be relevant even if you do not call yourself a landlord. Many business owners have a former home, inherited property or small portfolio sitting quietly alongside their main business.

Decisions about refinancing, investing or selling those properties can affect personal cash flow and wider business plans.

The Renters’ Rights Act has raised the standard expected of landlords. For those prepared to operate professionally, the resulting market movement could create opportunities to acquire, improve or restructure a portfolio.

DOWNLOAD the full expert guide: Renters’ Rights Act opportunities for professional landlords HERE

Our property finance specialist, Debbie Labourne, would be very happy to have an initial conversation with you if this article raises questions about an existing property, a potential acquisition or the financing of your wider portfolio.

FundingRound is an independent commercial finance brokerage.

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We are pleased to introduce FundingReady! Is your business ready for funding?

Paul Green — Tue, 11 Aug 2026 11:48:23 +0000

Would your business be FundingReady tomorrow?

Running a business rarely feels completely predictable, but the current economic climate is making financial planning particularly difficult for many small and medium-sized businesses. Rising costs, slower customer decisions and pressure on cash flow can all make it harder to balance today’s commitments with tomorrow’s plans.

In circumstances like these, it is understandable that funding often slips down the priority list until there is a specific reason to think about it. Perhaps a new contract has been won, equipment needs replacing, an additional member of staff is required or the opportunity arises to purchase commercial property. Sometimes the need is less positive or predictable, such as a major customer paying late or an unexpected cost putting pressure on working capital.

Whatever the reason, the question is the same: if your business needed funding tomorrow, how well prepared would it be?

Lenders will consider much more than the amount you want to borrow. They are likely to look at your recent financial performance, profitability, cash flow, existing commitments, management information and the strength of your plans for the future. They will also want to understand why the funding is needed and how the business expects to manage the repayments.

None of this should prevent a good business from securing finance. However, when funding is needed quickly, there may be little time to address gaps in financial information, explain an unusual set of results or consider whether existing borrowing is still structured in the right way.

That is why we have introduced FundingReady by FundingRound.

FundingReady is a complimentary, no-obligation funding readiness review from FundingRound. It helps business owners understand how commercial lenders may assess their business, what could support a future business finance application and which areas might benefit from attention before funding is needed.

What does a funding readiness review include?

We will consider the strengths that could support a future application, identify any areas that may benefit from further attention and talk through the types of commercial finance that could be relevant, including business loans, asset finance, invoice finance, working capital facilities and commercial property finance.

Following the conversation, you will receive a personalised **FundingReady Summary and Action Plan**. This will bring together the main points discussed and set out practical actions you may wish to consider. These might include improving management information, reviewing existing commitments, preparing forecasts or simply beginning a funding conversation earlier.

FundingReady is not a formal lending assessment or a guarantee that finance will be available. There is no application form, no paperwork to prepare and no obligation to proceed with funding. It is an opportunity to step back, understand where your business stands and become better prepared before finance is urgently needed.

That preparation matters because funding is not only about dealing with difficult circumstances. It can also allow a business to respond quickly when the right opportunity arrives. If a new contract, property, acquisition or investment opportunity appeared tomorrow, you would want to be considering its potential, rather than starting from scratch to establish whether funding might be possible.

You cannot predict every challenge or opportunity that may be around the corner. You can make sure your business is better prepared when it arrives.

Would you like to find out if your business is FundingReady?

If you are considering future growth, reviewing your cash flow or simply want to understand how prepared your business may be for commercial finance, FundingReady gives you a practical place to start.

Click here to arrange a complimentary and confidential FundingReady Review. You will receive an honest assessment of where your business stands, along with practical actions that could help you become better prepared before funding is urgently needed.

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Growth Costs Money Before It Makes Money : How to Finance Business Growth

Paul Green — Mon, 03 Aug 2026 17:16:06 +0000
Home
Why businesses need to plan for the financial implications of growth

Growth is usually talked about as the prize: more customers, more orders and higher turnover. What receives less attention is that growth has to be paid for, and the costs often arrive before the extra income reaches the bank. A business can be busier than ever and look successful from the outside, yet still feel increasingly stretched. That may simply mean its old way of operating can no longer support where it is heading.

The moment one van was no longer enough

Consider an office supplies business that has grown steadily. At first, extra customers can be served using the same van, driver, premises and team. Eventually, one van is no longer enough. The business needs a second vehicle and another driver, and neither can be bought in convenient 20 per cent portions. The full cost arrives before that extra capacity has generated its return.

The pattern may continue with stock and storage. More customers require more products, a larger warehouse and perhaps additional racking. Extend that racking upwards and the business may also need a forklift, trained operators and extra insurance. Every decision can make commercial sense, but together they create a sizeable commitment. Growth rarely follows a smooth line. It happens in steps, and moving onto the next one can be expensive.

Profitable work can still create cashflow pressure

Winning a valuable contract can make the problem more obvious. Recruitment, materials and production costs may begin immediately, while the customer pays in 30, 60 or even 90 days. Wages, suppliers, rent and insurance do not politely wait for an invoice to be settled. The contract may be profitable on paper, but the business still needs enough working capital to deliver it. Profit matters, but it cannot meet payroll until it becomes cash.

Look beyond the headline cost

The headline purchase is only part of the bill. A new employee brings recruitment costs, employer’s National Insurance, pension contributions, equipment and training. Larger premises may involve deposits, legal fees, business rates, fit-out and disruption. Machinery needs installation and maintenance, while vehicles bring servicing and downtime. Growth can also expose systems that worked for a smaller company. A spreadsheet built for 20 customers may struggle with 200, while an owner who approves every decision can become the bottleneck.

Plan for the next step

Good planning starts with capacity. How much more can the existing team and equipment handle? At what point will another person, vehicle or machine become essential? When will the premises become a constraint? Once those trigger points are visible, the business can estimate the upfront and ongoing costs, map when extra revenue should begin and test what happens if sales arrive later or costs run higher than expected.

No forecast will predict everything, but it can show where pressure may build and allow funding to be considered before the need becomes urgent. Any arrangement should match the investment and keep repayments manageable. Independent professional advice should be obtained before entering into a financial agreement.

The second van, larger warehouse and improved systems are not warnings against growth. They show that the business is moving beyond its old limits. The lesson is that growth changes what a business needs, often before it delivers the expected return. Strong businesses see the next step coming, understand what it will cost and prepare early. Growth should leave the business stronger, not merely busier and more financially stretched.

Depending on what the business needs to fund, the options could include asset finance for vehicles or equipment, invoice finance to help manage delayed customer payments, or a commercial loan to support a wider investment programme. The right structure will depend on the purpose, timescale, affordability and individual circumstances of the business

If your business is preparing for growth, pursuing a new contract or nearing the limit of its people, equipment or premises, the FundingRound team can help you consider the likely financial implications and explain the types of commercial finance that may be available. Any options will depend on individual circumstances, lender assessment and the relevant terms and conditions.

DOWNLOAD THE FULL EXPERT ARTICLE HERE

About the Author

Paul Green is an independent business coach and consultant engaged by FundingRound to support its business development, marketing and strategic communications. He is not an employee, appointed representative or adviser of FundingRound Ltd and does not provide financial, investment or regulated credit advice.

This article is provided for general business information only. It does not constitute financial, legal or tax advice and should not be relied upon as such. FundingRound Ltd accepts editorial responsibility for content published on its website. Businesses should seek advice appropriate to their individual circumstances before making financial decisions.

The post Growth Costs Money Before It Makes Money : How to Finance Business Growth appeared first on FundingRound.

The Clarkson’s Farm Effect – A Market Insight for Farming and Rural Entrepreneurs

Paul Green — Tue, 30 Jun 2026 15:12:23 +0000

Programs like Clarkson's Farm have probably done more for public understanding of modern farming than most industry reports ever could. Behind the entertainment, what many people have actually seen is the sheer commercial pressure that rural businesses now face every day.

For many farms, traditional agriculture alone is no longer enough to provide long-term stability. Rising costs, unpredictable weather, tighter margins and increasing regulation are all pushing businesses to think differently about how they generate income.

That is why diversification has become such a major part of the rural economy..

Across the UK, farms and estates are increasingly evolving into broader commercial operations, with holiday accommodation, storage facilities, wedding venues, renewable energy projects, farm shops and commercial units all becoming far more common.

From the outside, some of these projects can look relatively straightforward. The reality behind them is often very different.

One of the biggest challenges is that diversification projects rarely fit neatly into standard lending criteria. Rural businesses often have seasonal income, mixed-use property, planning considerations and multiple revenue streams, which means the finance structure becomes incredibly important.

The right funding can support long-term growth and flexibility. The wrong structure can quickly place pressure on cashflow and restrict future plans.

Lenders are still very much supporting rural businesses, but the conversation has changed. They want stronger visibility around planning, resilience and long-term commercial sustainability rather than simply funding growth for growth’s sake.

Property is also becoming increasingly central to rural business strategy, with many farming businesses now effectively managing a combination of agriculture, property and commercial enterprise together. Commercial mortgages, development finance and bridging facilities are all playing a larger role within the sector than they once did.

What is becoming clear is that the strongest rural businesses are often the ones treating diversification as part of a wider long-term strategy rather than simply chasing additional income.

And perhaps that is one of the most interesting things Clarkson’s Farm has accidentally highlighted. Modern farming is no longer just about farming. Increasingly, it is about building commercially resilient businesses that can adapt and evolve in a very demanding environment.

Read the full article >> The Clarkson's Farm Effect <<

Should any of these themes resonate, we are always happy to have a conversation with business owners or finance teams navigating similar challenges.

The post The Clarkson’s Farm Effect – A Market Insight for Farming and Rural Entrepreneurs appeared first on FundingRound.

When the Build Goes Over Budget: The Reality of Property Development Finance

admin — Wed, 17 Jun 2026 13:32:01 +0000

Every property developer starts with a sensible budget, a realistic timeline and a plan that feels achievable at the outset. Then the reality of development kicks in, and things rarely unfold exactly as expected.

Material costs rise unexpectedly. Groundworks take longer than planned. Contractors get delayed. Older buildings reveal problems nobody could fully anticipate until work begins. A project that looked comfortably funded on day one can start putting pressure on cashflow halfway through the build.

That is where flexible property development finance earns its place. Used properly, it helps developers deal with the real-world messiness of a build, not just the neat version that appears in the first spreadsheet.

The truth is, this happens more often than many people realise. Experienced developers know that managing change, adapting quickly and having the right funding behind them can be the difference between a project stalling and one that keeps moving despite the bumps along the way.

The earlier you engage a trusted finance professional, the more easily your scheme can be structured to match both lender expectations and market reality. At FundingRound, many of our conversations with developers help shape their lending requirements, including a realistic contingency. That figure is typically 10% as a minimum, though it can rise depending on the land condition or the state of buildings earmarked for refurbishment.

That said, plenty of developers come to us once costs have already started to overrun. The project is still viable. The site is still moving. They simply need a bit more flexibility to keep momentum going.

Why Projects Go Over Budget

In most cases it is not one catastrophic issue that causes the problem. More often it is a combination of smaller pressures building over time until cashflow starts to tighten.

Material prices shift midway through a job. Labour availability changes. Poor weather creates delays that quietly add to both site costs and finance costs week by week. On refurbishment projects, particularly older buildings, hidden structural issues, wiring problems, roofing defects or asbestos can create expense that simply was not visible at the start.

Even experienced developers with well-run projects can find themselves needing extra flexibility as a scheme progresses, especially when timelines slip or costs creep beyond the original projections. It rarely means anyone made a bad decision. Sometimes the project has just moved on from the version that existed on day one.

How Property Development Finance Helps When Cashflow Tightens

This is often the point where timing becomes critical. The build may already be well underway, contractors still need paying, and the development itself remains viable. Traditional lenders, though, can sometimes move too slowly when a decision is needed quickly.

Delays in securing extra funding pile more pressure on both the project and its profitability, which is why access to specialist property development finance can be so valuable at this stage. Rather than relying on a single lender's criteria, we work across the wider lending market to find solutions that fit the actual circumstances of the project.

Sometimes that means restructuring an existing facility. In other cases it means introducing additional development funding, bridging finance or exit finance to protect the scheme and see it through to completion.

The important point is that these options are not interchangeable. Bridging finance, for example, is a short-term solution that can suit situations where speed or a clear exit route matters. It is not a catch-all fix for every development that has gone over budget. Development finance is generally built around construction, heavy refurbishment or ground-up schemes, while bridging is shorter term and usually tied to a specific exit such as a sale or refinance.

So the better question is rarely "can bridging fix this?" It is "what does this project actually need now, and what will a lender realistically support?" That is a very different conversation.

A Lincolnshire Development Example

A good example is a FundingRound case study involving an established residential developer in Lincolnshire.

The client was working on the first phase of a six-house development with a gross development value of around £2 million. The funding needed a more tailored approach than many mainstream lenders were comfortable offering. The developer had strong sector experience, but the structure of the land purchase and the level of borrowing involved meant careful planning and lender selection mattered throughout.

We worked alongside them from the outset, helping structure the proposal, model different phasing options, compare lender appetite and manage the valuation and monitoring through to completion. That may sound like the behind-the-scenes admin of finance, but it is often where a deal becomes stronger.

A lender does not just look at the headline value of the finished scheme. They want to understand the project, the borrower, the timing, the risks and the exit. In this case the outcome was a structure that enabled the land acquisition, supported the project with confidence and built in the comfort of contingency to cover realistic unforeseen costs.

The Importance of Exit Strategy and Flexibility

One of the biggest misconceptions in development finance is that finishing the build automatically solves every problem. In reality, market conditions still play a huge part in how well the project performs.

If sales slow, developers can feel pushed into selling too quickly or accepting lower offers just to reduce finance costs, even when waiting a little longer might produce a stronger result. Development exit finance can create breathing space here. It typically replaces more expensive development funding with a cheaper short-term facility once the development risk has passed, giving developers time to market and sell properly rather than rushing decisions under pressure.

As with everything, the details matter. The suitability of exit finance depends on the finished scheme, the remaining debt, the sales route and the lender's criteria. It works best as part of the wider funding plan, not an afterthought once pressure has already built. Different situations call for different solutions, which is why understanding the wider funding picture, and having experienced guidance through it, makes decision-making far less stressful.

Keeping Projects Moving

Going over budget can feel stressful, particularly when costs are rising and timelines are tight. But it is one of the more common realities in the sector, and not a sign that a project cannot still succeed.

The developers who navigate it best are rarely the ones who avoid every challenge. They are usually the ones who act early, seek advice quickly and get the right funding structure in place before delays become harder and more expensive to manage.

At FundingRound, we focus on practical conversations, straightforward advice and helping developers understand the property development finance options open to them. If your project is starting to feel the pressure on costs or cashflow, talking to the right people early can open up solutions that keep the build moving while protecting the long-term viability of the scheme.

Not every project needs a dramatic restructure. Sometimes it just needs a clearer plan, a better lender fit or a more realistic route through the next stage. Either way, the earlier the conversation, the better.

FAQs

How do I get a loan for property development? The right solution depends on the size of the project, the timescales, your experience, the projected costs and the exit strategy. Preparation matters, because lenders want to understand both the viability of the scheme and the strength of the structure behind it. An experienced broker can help make sure the funding fits the realities of the project rather than just the headline numbers.

What is the difference between bridging finance and development finance? Development finance is generally designed for larger renovations or ground-up construction. Bridging finance suits shorter-term needs, lighter refurbishments or situations where speed is the priority. The most suitable option always depends on the stage, structure and objectives of the individual project.

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SME Finance & Pressures on the Finance Director – A practical view for the £5m–£25m turnover business

Paul Green — Tue, 26 May 2026 10:33:29 +0000

Across many SMEs in the £2m–£25m bracket, the pressure now feels far more structural than cyclical. We’re speaking to finance directors and business owners who are managing several pressures at once, with margins being squeezed quietly but consistently rather than by one single major issue.

Employment costs continue to rise, particularly with National Living Wage and NI changes now feeding through properly into payroll costs, while energy and wider operational costs remain stubbornly high. At the same time, cash is getting tied up for longer, especially in sectors like construction, manufacturing and logistics where extended payment terms are becoming increasingly common.

We’re also seeing businesses working through fixed-price contracts agreed during 2024 and 2025 which are now absorbing inflation levels that simply weren’t anticipated at the time. Turnover may still look healthy on the surface, but profitability is under growing pressure underneath.

What’s interesting is that the expectation to invest hasn’t slowed down. Businesses still need to fund equipment, automation, AI and operational improvements, while also meeting ESG and procurement requirements just to remain competitive. The difference is that these conversations are now happening in a higher-cost funding environment.

As a result, the conversation has shifted from “can we get funding?” to “how do we structure funding so it genuinely works for the way the business operates today?”

It would be interesting to hear how others are seeing this currently. Is the biggest pressure point right now cash flow, margins, staffing costs, or access to the right funding structure?

For anyone interested, we’ve also put together a more detailed report covering sector-specific pressures and funding structures for SMEs in the £5m–£25m range

Read More >> SME Finance & Financial Director pressures report – May 2026 <<

Should any of these themes resonate, we are always happy to have a conversation with business owners or finance teams navigating similar challenges.

The post SME Finance & Pressures on the Finance Director – A practical view for the £5m–£25m turnover business appeared first on FundingRound.