What Is Development Finance? How Does It Work?

Development finance materializes in the form of development loans which are short-term
loans that are typically reimbursed between 6 – 24 months. Such loans are shelled out to
assist with projects that involve residential or commercial development.
How does development finance work?
Development financing comes in two parts which are as follows: Funds can be awarded to
purchase the site where the infrastructure will be erected or to build the building. In the
former, funds will be used in the acquisition of a site such as land or a rundown building
that needs a fresh coat of paint. The latter involves funding for the construction/
renovation of a residential or commercial structure.