Paragon launches sub-£1m product for SME developers



Paragon Bank’s development finance division has introduced a new product for loans between £400,000 and £1m.

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The offering is targeted at new-build residential developments with a sub-£1m funding requirement to help housebuilders and developers with smaller projects. 

It will enable the lender to support clients during the earlier stages of their business growth and as they mature to larger-scale projects.
 
Robert Orr, managing director of development finance at Paragon (pictured above), said: “This [offering] complements our existing residential development product range of loans from £1m to £30m.

“Our business pipeline is strong, and the widening of lending criteria further supports our dedication to this sector.”

During 2020, the business hired five new relationship directors and four portfolio managers to support both the launch of the new product and growth of the existing business. 

The credit and operations function also expanded.

“Developers want to work with a bank that is consistent, financially strong and has the experience and expertise to support their business,” Robert added.

“We have remained active throughout the coronavirus pandemic and our clients appreciate that commitment to the market.” 

Paragon’s net development loan book increased by 20% during 2020 to £609m.



2 Comments

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    Oliver Coffie

    This is fanstice ,to beable to has the support of a company that is willing to offer this level of opportunity of a new - build residential development project. from the Beging to the end of the project and beyond with major growth into the housing market. where there is a shortages and with growth there will be job creation. by offering jobs and the scope of growth this will inprove the economie Regards Oliver Coffie

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    JOHN LYNCH

    WE ARE A CHARTERED ACCOUNTANCY PRACTICE BASED IN DUNFERMLINE FIFE WE ARE TRYING TO SOURCE SUITABLE DEVELOPMENT FINANCE FOR A SMALL FAMILY HOUSEBUILDER WE WONDERED IF YOU ARE STILL LENDING PLEASE EXCUSE THE CAPLOCKS

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