Dreams of the architect: gain the construction finance you need

By Friday, June 27, 2014 0 No tags Permalink

Do you ever wander the streets of your hometown and simply admire the buildings around you? High above the gaudy high street chains and high-tech superstores, you can still see remnants of the old, grand architecture housing these shop fronts.

Victorian spires and minarets adorned with intricate cornices and faux-arabesque patterns – you’ll see these beauties in many a city centre. But, you also might think to yourself, I could do better than that.

While that might be the case, any budding architect will struggle to find funding for their dream project, whether they’re an established name or not.

Since the economic collapse of 2008, businesses have seen a slow yet steady recovery, but high risk investments such as building projects are still largely denied from major banking firms.

The reason for this is simple – construction requires a large sum of upfront finance, from labourers to materials, land to equipment. Add to this the huge wait for construction to actually finish and you’re looking at a huge period of time before profits can viably roll in.

That doesn’t mean that your hopes of seeing a new building with your design should be hampered. Away from the mainstream financial institutions there sits the alternative finance sector, offering construction financein an easy and viable way.

Indeed, alternative finance is now a billion pound industry, providing budding builders the chance to gain the finance they need, and eventually rake in the profits.

How these services work is by figuring out your collateral before they’ll part with their cash.

They’ll send a surveyor over to quantify your property and inventory before concluding how much cash to give you. Essentially, they work in conjunction with you rather than battling to shoot holes in your business plan.

Finding alternatives to the big banks

But it’s not the only option available to you – the government have also started offering grants for various businesses, with a specific interest in any business that could give the economy a boost.

Not only this, but you could also try finding a private partner to stump up funds for your dream work of architecture.

Gaining finance in these arenas mainly comes down to three questions you should answer in your business plan:

  1. How does your building help people?
  2. How can it make a profit?
  3. How can it appeal to the public?

If you can answer these three questions and prove your architectural mettle, you’ll really be able to turn I could do better than that into more than just a dream.

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