In 2020, the world experienced unprecedented upheaval with the COVID pandemic. Not only the healthcare impacts, but the associated lockdowns and restrictions on movement will have ramifications for years to come. Millions around the world have experienced the catastrophic consequences of the pandemic. Wreaking havoc with the global and local economy, 2021 will be a year spent continuing to deal with the crisis.
The construction industry is a key driver of economic growth and creates employment which South Africa is in desperate need of. With property developers looking for astute investment opportunities to enable and support growth, the industry is looking at a positive year ahead, however finance in this sector can be a significant stumbling block, one which can threaten the viability of even the most attractive project.
Traditional banks are under extreme pressure to focus on existing clients and with economic contraction a reality, they remain risk averse.
Accessible finance remains a challenge for most property developers. Before starting any property development, it is critical to establish how much you can borrow and how you will manage the associated costs of financing. Not having adequate funding secured can cause serious delays and even threaten the chances of a successful project.
Another frustration is the length of time it can take to get finance approved. This leaves developers with cash flow frustrations and unfortunately places great strain on development projects, even affecting their viability. Access to finance is critical to avoid a deal falling through.
Do you ever feel that your bank doesn’t share your vision for a project? Don’t let an opportunity slip away while you worry about the uncertainty of financing a deal. Take the time to find a financial institution that understands your project, is flexible and responds quickly to changes in the market. Finding a trusted partner for your development will take the headache out of financing.