Not all banks are open to project financing

Not all banks are open to project financing

Financing investment property is fundamentally different from financing a residential property. Project financing is even more complex and not for all banks. We work with banks that are willing and able to go the extra mile.

Project financing is not uniform. After all, no two projects are comparable. It is tailor-made and requires substantive knowledge, but that doesn't say it all. Knowledge is not the problem at the big Dutch banks, but project financing at the big banks is not always easy. That is why we work with banks that really focus on more complex financing.

The bank needs to understand your business properly

Converting a commercial building into an apartment complex with several residential units is a business model in itself, and the financing goes over several tranches. But the financing has to come from one bank, otherwise financing the whole thing becomes too complicated and impractical. As consultants, we specialise in non-standard financing. For project financing, you don't go to any advisor, you go to the specialist. The same goes for project financing. At the bank, in-depth knowledge is needed and they have to find it fits within their own organisation.

Of project financing, the risk is more difficult for banks to assess

To buy an investment property in a prime location, most banks are willing to provide financing. If things get complicated, the big Dutch banks refer to their specialised companies. ING, for example, refers to ING Real Estate. For project financing, it remains to be seen whether financing will work with banks that focus on commercial real estate. Therefore, for project finance we work with several specialised banks that know how to provide tailor-made financing and understand the risks and opportunities.

With a well-thought-out plan, project financing succeeds

Project finance is a niche that most banks are not well versed in. Getting a project financing deal done also requires a thorough approach, which we specialise in. We can make possible what at first seems impossible, but a conclusive dossier is decisive here. So if you have all the information in front of you, we can specifically look for the bank where opportunities lie. So all components in the planning must be well thought out and financially sound. With a complete dossier, we can start the search.

Which banks do we work with, among others?

We will briefly introduce to you three banks that specialise in project finance. We work closely with these banks to get projects financed:

  • DCMF - This bank offers tailor-made solutions. Within a few days of application, they provide feedback on a requested financing. DCMF is strong in real estate projects that other banks won't venture into. Even with the current corona crisis, they look for solutions instead of rejecting applications immediately.
  • RNHB - The bank has been around since 1890 and caters to the novice and professional investor. They also have solutions for investments above €2.5 million. It is a flexible lender that also finances properties that are slightly different. Ideally suited for project financing, then.
  • NIBC - NIBC Real Estate Mortgage is a division of NIBC Bank. They provide mortgage loans of up to €10 million. They also offer financial solutions for your project financing.

We are happy to help you think along and, of course, finance the purchase of the property and realise the final goal. Would you like to know more about what we can do for you? Then make a no-obligation appointment to discuss your options.

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