Secure Short-Term Development Finance: What You'll Achieve in 30 Days
In 30 days you will have a market-ready funding package on MyFluent that attracts competitive offers from specialist lenders and institutional pockets for deals between £50,000 and £500 million. You will know which funding product fits each deal - bridging, short-term construction finance, mezzanine, or forward-funding - and you will have a clear drawdown plan, exit route and contingency for cost overruns. By the end of the month you will have either a conditional offer or a term sheet you can rely on while you finish legal and planning stages.
This is practical, not theoretical. I’ll show you exactly what documents to collate, how to structure the request so underwriters take it seriously, how to price the deal in your head so you don’t get bullied at the point of completion, and the red flags that make lenders walk away. Real examples and thought experiments are included so you can rehearse what you’ll do when the lender asks for an extra guarantee or the valuation comes in low.
Before You Start: Required Documents and Tools for Funding on MyFluent
Don’t waste your first 72 hours on guesses. Prepare this pack first and upload it to MyFluent’s data room so lenders can underwrite fast.
- Project summary - single page: borrowing amount, term, use of funds, exit strategy, key dates. Cost plan and cashflow - contractor quotes, cost to complete, contingency line, monthly drawdown schedule. Valuations and comparables - current valuation, evidence of recent sales nearby, proposed GDV (gross development value) calculations. Land or property title documents - up-to-date searches, any existing charges, restrictive covenants flagged. Planning - consents, conditions, correspondence with planning officer, expected timelines for discharge. Construction contracts - JCT or NEC heads of terms, contractor CVs, proof of experience and insurance. Borrower and developer credentials - company accounts, director CVs, proof of funds for equity, track record of similar completions. Exit evidence - sales strategy, pre-sales, forward sale agreements, lettings schedule, rent assumptions and void periods (if build-to-rent). Financial model - three-way model showing cashflow, loan servicing, sensitivity to cost overruns and a downside scenario. Legal framework - proposed security package, solicitor contacts, anticipated bank account and escrow arrangements. Regulatory and KYC materials - passports, proof of address, anti-money laundering documents for all principals.
Tools to have at hand:
- Spreadsheet model (editable) with line items lenders trust - show monthly drawdown and cost phasing. PDF data room or link to MyFluent upload - keep file names consistent so underwriters can find things quickly. Valuation and market report subscriptions or research pack for local comparables. Solicitor and surveyor on standby so you can react to lender conditions quickly.
Your Complete Funding Roadmap: 7 Steps from Application to Drawdown
Step 1 - Define the exact ask and exit
Write a one-page brief: amount required, term requested (1-24 months), desired interest structure (rolling monthly, fixed period), security available and your exit route (sale, refinance to term lender, JV sale). Lenders hate vagueness. Example: “£1.2m acquisition and refurbishment to complete conversion to 6 flats. Term 12 months. Exit: refinance to HNW portfolio lender at 70% GDV or sales within 9-12 months.”
Step 2 - Price it in your head before you shop
Pick a worst-case cost of funds so you can negotiate. For many short-term deals expect all-in costs of 7% to 16% pa depending on LTV and risk. Mezzanine and high-risk deals may be higher. Include arrangement fees, legal fees, exit fees and interest roll-up. If you need a 12-month facility for £1m and the lender charges 10% pa with interest rolled up plus a 2% arrangement fee, your effective cost could be 12% in year one. That affects your exit price.
Step 3 - Upload a tidy data room to MyFluent
Put the documents from Section 2 into labelled folders. Add a short cover note that flags any unusual items. MyFluent’s marketplace works fast when underwriters can click through and find everything. If a valuation is absent, add a line in the project summary: “Valuation being finalised - expected week of XX.”
Step 4 - Target the right lender pockets
Match the deal to a lender type. Small refurbishment under £250k - short-term bridging specialists and peer-to-peer pools. £250k–£10m - regional development funds, challenger banks, and mezzanine houses. £10m+ - institutional funds and larger balance-sheet lenders. MyFluent can surface lenders by appetite - use filters for LTV, term and product.
Step 5 - Manage the underwriting questions
Expect three waves of questions: initial credit questions, valuation/technical queries, and legal/security confirmations. Answer quickly. For example, if the valuer lowers GDV by 8%, be ready with evidence of comparable sales and marketing schedule. Where there’s a gap, propose a sensible fix such as partial personal guarantee or a step-in mechanic for the contractor.
Step 6 - Negotiate term sheet and clear conditions
When offers arrive, don’t sign the first vague term sheet. Push for clear conditions: permitted drawdown triggers, materials retention clauses, defects retention and release schedule. Insist the lender sets out how they calculate interest on rolled-up sums and whether fees are applied to the full loan or only drawn sum. Small wording changes can save you tens of thousands at completion.
Step 7 - Execute and monitor
Once legal is agreed and funds are committed, set up a weekly drawdown tracker and a single point of contact with the lender and solicitor. Keep a contingency pot and update MyFluent data room with any changes. If costs creep, be proactive - ask for a redraw or extension well before you miss a covenant.
Avoid These 7 Funding Mistakes That Kill Deals
Deals die for simple reasons. Learn these now so you don’t lose days of momentum or pay for it later.
- Missing valuation comparables - don’t let a valuer guess the market. Provide recent, signed sales schedules. Underestimating cost to complete - use contractor budgets plus 5-10% contingency depending on complexity. Overly optimistic exit timing - if you plan sales in 6 months, stress-test to 12 months and price accordingly. Weak borrower pack - no trading history or weak accounts? Explain your track record and show partner CVs and evidence of equity. Ignoring security polish - poor title issues, unregistered leases, or missing covenants are red flags. Fix them first. Accepting ambiguous drawdown triggers - a lender who demands “practical completion” without definition can refuse partial draws. Define triggers in the term sheet. Not budgeting for lender conditions - legal fees, survey add-ons and retentions add up. Factor them into your funding ask.
Pro Funding Strategies: Advanced Structuring Moves for Developers and Investors
Now we move beyond basics. These moves help you secure better pricing, protect equity and keep control when markets shift.
Split product strategy
Use a senior short-term facility plus a small mezzanine buffer. Senior debt covers 60-70% of GDV at lower cost, mezzanine fills the gap at a higher rate but smaller quantum. This reduces overall blended cost and makes institutional lenders more comfortable on larger deals.
Staged equity injection
Offer staged equity rather than all at completion. For a £5m project, put 10-15% upfront and the rest released on key milestones. Lenders like staged equity because it shows skin in the game and reduces refinancing risk at exit.
Forward-sale or pre-let as exit security
Securing a conditional forward-sale or pre-let drastically reduces the lender’s view of market risk and can lower pricing. Even a memorandum of understanding with a purchaser gives lenders confidence.
Hybrid fee structuring
Negotiate part-arrangement fee and part-success fee, or a step-down margin that reduces if you hit sales or refinance benchmarks. For example, 1.5% arrangement fee plus a 0.5% rebate if 80% of units are pre-sold at agreed thresholds.
Use a covenant light schedule for short terms
For 12-month deals push for fewer ongoing covenants and replace them with practical reporting: monthly budget versus actual and site inspections. Aggressive covenant banks insist on ratio tests that can trigger defaults on minor timing slips.
Thought experiment: the sudden valuation shock
Imagine you have a 12-month refurbishment with expected GDV of £2.4m and the valuer drops to £2.1m at month 6 due to local pricing. What do you do? Options include: accelerate sales of completed units, offer the lender extra security on another asset, agree a short-term mezzanine top-up, or reduce contractor works to protect cash. Pick the least damaging option before you get to negotiation day. Running this scenario in your model will tell you which levers are cheapest to pull.
When Funding Goes Wrong: Fixing Application and Drawdown Problems on MyFluent
Things go wrong. The speed at which you fix them determines whether you pay a premium or survive the project. Here’s how to handle common breakdowns.
KYC or AML failure
Problem: lender stops progress due https://www.propertyinvestortoday.co.uk/article/2025/09/best-5-bridging-loan-providers-in-2025/ to missing documents. Fix: centralise KYC in your MyFluent profile before applying. If a director is slow, use certified copies and a signed authority letter so legal can proceed while documents are obtained.
Valuation comes in low
Fix: provide additional sales comparables, buyer interest evidence, or a marketing plan. If the lender won’t budge, be ready to provide a small personal guarantee or cover the shortfall with a short-term mezzanine. Only use guarantees when the project economics justify the risk.
Condition blowout at legal stage
Fix: push for a limited set of conditions that can be cleared post-completion - for example, title rectifications that do not affect asset value. Offer an escrow mechanism for disputed amounts rather than full holdback. Get your solicitor to propose precise drafting to avoid open-ended obligations.
Drawdown dispute with contractor retention
Fix: pre-agree the retention release schedule with the lender and contractor. If the lender wants full retention, offer a third-party warranty or a defects bond for the lender’s peace of mind.
Extension request becomes urgent
Fix: approach the lender 60 days before expiry with updated sales evidence, revised method statement and a modest extension fee. Show repayment ability via a refinance term sheet or forward sale. Lenders will often extend short facilities if persuaded they can exit without loss.
When the lender withdraws at short notice
Thought experiment: funder pulls 72 hours before completion. Immediate steps - confirm in writing the reason for withdrawal, check for remedy conditions that can be cured quickly, call your solicitor and MyFluent broker to seek alternate lender bridge for 14-30 days. Having a small emergency credit line pre-approved on MyFluent for such events saves deals. Plan for it.
Final note: MyFluent is a tool - a fast lane to the market. It does not replace sound underwriting, realistic modelling and a tight legal framework. Use it to get you in front of the right lenders quickly, but do the hard work: detailed cost plans, conservative sales assumptions and iron-clad reporting. Protect client money, be blunt with lenders about your exit, and always run the worst-case scenarios before you sign anything.
If you’d like, I can draft a one-page project brief template tailored to your deal and a checklist you can upload to MyFluent today. That gets you from scattergun to market-ready in under 72 hours.