Five Critical Questions Every Developer Should Ask Before Choosing a Lender
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Choosing the right lender can make or break a development project.
A lender might offer what appear to be attractive terms, but if they can’t move fast enough or adapt to challenges - especially during construction - they can cost you more in the long run.
Whether you’re looking for land acquisition finance, a construction loan or residual stock funding, asking the right questions before signing on the dotted line is crucial, according to Lambert Capital Founder and Director Mark Greenberg.
Beyond interest rates, developers need to scrutinise a lender’s operational speed, funding flexibility, and decision-making processes – both in the approval stage and during the construction phase.
“Developers operate in a pressure cooker,” Mr Greenberg said.
“One missed deadline or funding bottleneck, and an entire project can be at risk.”
These are the key questions you should ask to secure a lending partner who delivers, not delays.
How Quickly Can You Approve My Loan?
Time is money in the development sector. Waiting longer means rising holding costs, shifting market conditions, and potential contract issues.
Lenders who take weeks - or even months - to approve a loan can put an entire project at risk.
“If a lender can’t give you a straight answer on how long the approval will take, that’s a red flag,” Mr Greenberg said.
“At Lambert Capital, we approve loans from $5M to $30M within 24 to 48 hours because we know time is everything in this game. Similarly, construction drawdowns are always processed on the same day a QS report is received.”
Developers should also ask how quickly they can access funds after approval. Some lenders promise fast approvals but make drawdowns a slow and painful process.
Who Controls the Funds?
Many lenders rely on third-party credit approvals, which can slow things down or even block access to funds.
Developers need to know who controls the capital and whether their lender has the final say on releasing the funds.
“Some lenders rely on wholesale credit lines and/or separate credit teams, meaning they need someone else’s approval before they can fund your project,” Mr Greenberg said.
“That’s risky. At Lambert Capital, we control 100% of our capital. No third parties, no delays - just direct funding up to $30M per loan when developers need it.”
How Flexible Are Your Funding Solutions?
Speed and flexibility to settle a development site purchase or provide cash out to refinance construction debt into a residual stock loan are valued by property developers.
And during construction, development projects don’t always go to plan. Unexpected costs, shifting timelines, and market changes can all impact funding needs.
A lender who offers flexibility and support throughout the development process can be the difference between a project moving forward or stalling.
“If a lender can’t adjust to the reality of a project, they’re not really backing you,” Mr Greenberg said.
“With us, you’re not dealing with a committee or an employee following a checklist. You’re dealing directly with people who structured the deal for you from Day 1.”
What is the loan structure?
How a loan is structured impacts everything from cash flow to project feasibility and ultimately overall profitability.
Developers need to know upfront how much they can borrow, what portion needs to come from equity, and whether there’s flexibility built into the deal to provide for cost overruns and unexpected events during the construction and sell-down phase.
“It’s not just about how much you can borrow - it’s about how the funding is structured to support your project from start to finish,” Mr Greenberg said.
“At Lambert Capital, we cover up to 90% of total project costs, with 70% coming from our Fund and the option of an additional 5% available through our in-house structured funding. That gives developers more control over their cash flow and reduces upfront equity requirements.”
Can I Speak Directly to Decision-Makers?
Some lenders put layers of red tape between developers and the people making the calls.
When problems arise, having direct access to decision-makers can mean the difference between quick action and frustrating delays. This is also reflected in how loans are managed during the construction phase.
“Developers need to ask: Who will I actually be dealing with? If it’s not the person making the decisions, that’s a problem,” Mr Greenberg said.
“We have a flat structure, so our clients deal directly with us. That means no middlemen and no unnecessary delays.”
Choose the Right Lending Partner for Your Next Project
Developers need a partner who understands the realities of the industry, moves quickly, and works with them to get projects over the line.
Lambert Capital provides fast approvals for loans from $5M to $30M, flexible funding structures, and direct access to decision-makers, ensuring developers get the support they need.
To learn more about how Lambert Capital can support your next property acquisition, development project or residual stock loan, contact us.
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