Building Contractor with No Experience Secures 100% Financing
Featured Snippet: Articus Finance supported a building contractor with no experience 100 financing, arranging full funding of both land purchase and construction costs for a £3.5m GDV residential project in South London.
Introduction
Arranging funding for a building contractor with no experience 100 financing is a challenge that requires careful positioning, expert negotiation, and lender advocacy. While development finance normally favours experienced developers with proven delivery records, this case illustrates how Articus Finance was able to structure and secure complete financing for a contractor transitioning into development. The result was a £3.5 million Gross Development Value (GDV) project in South London, achieved with tailored support and lender trust.
Client Background
Our client had gained over 10 years of experience as a contractor on residential and commercial projects across London. Driven by the ambition to take the next step and become a principal developer, he identified a six-unit residential conversion opportunity in South London. The scheme involved purchasing a commercial property with existing planning consent to redevelop, with anticipated costs as follows:
- Land purchase: £845,000
- Build costs: £1.2 million
- Gross Development Value: £3.5 million
Although the client possessed deep technical knowledge of construction and delivery, he had not yet built a track record as a developer. This posed significant challenges in gaining lender confidence for a near 100% funding solution.
The Challenge
As a first-time developer, the client’s main hurdles were:
- Lack of principal developer track record – most lenders prefer established developers with completed projects.
- 100% financing requirement – covering both land and development costs without requiring significant input equity.
- High leverage risk profile – lenders are cautious when construction costs and purchase loans are fully funded.
- Tight project timescales – approval was needed quickly to secure the acquisition and commence works.
Without specialist support, the client risked rejection by lenders or excessive financing terms that compromised project viability.
Our Solution
Leveraging existing relationships with development lenders, Articus Finance presented a carefully structured case that underscored the client’s transferable experience, his role as principal contractor in past schemes, and his hands-on knowledge of cost management. The solution we secured included:
- A facility covering the entire £845,000 land acquisition cost.
- Development finance supplying 100% of the £1.2 million build costs.
- Repayment terms tightly aligned with the planned sales of the six completed residential units.
- Tailored covenants that recognised the risk mitigated by the client’s construction expertise and track record as a contractor.
This bespoke structure gave the client complete project financing while demonstrating lender confidence in the scheme’s strong GDV and market demand for residential units in South London.
Key Highlights
- Full financing at 100% of costs, covering both land and build.
- Land purchase: £845,000 funded entirely via development lender.
- Build facility: £1.2 million approved based on project appraisal.
- Projected GDV: £3.5 million upon completion, creating strong margins.
- Bespoke lender match secured by leveraging Articus Finance’s relationships.
Why Articus Finance Delivered
Sourcing finance for a building contractor with no experience 100 financing required more than simple lender introductions. It required credibility building, careful structuring, and ensuring the lender understood the transferable skills of the client as a seasoned contractor. Our ability to negotiate such funding highlights the value of Articus Finance as a trusted partner for clients transitioning into development.
Our discreet, solution-driven approach not only secured full financing but gave our client confidence to deliver his first project as lead developer with strong lender support and financing terms aligned with his strategic goals.
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Final Thoughts
This case demonstrates how a building contractor with no experience 100 financing can succeed with the right broker partner. Articus Finance showcased the ability to secure complete funding for land and build costs, delivering a £3.5m GDV opportunity and marking the client’s first step from contractor to developer with confidence.
