A lot of planning goes into project development. One of the first questions that needs to be answered when embarking on a project is ‘How much will the project cost and where is the money coming from?’
For a project one needs to first acquire the land or the site and then plan for the project that can be developed on that site in line with plans and permits approved. At initial stages, developers have to cost the various phases of a project to ensure that all works can be covered and eventually understand whether their planned project is going to be a profitable one or not. Investors may seek support for financing.
Bank loans are a form of financing which can be provided both for the acquisition and for the development or for the development only if the property is already owned. When approaching a bank for financing, the potential borrower is to be capable of meeting a share of the investment costs and this is considered as his contribution to the project, which in addition to the bank loan, will cover all the expenses involved. The borrower needs also to understand the finance costs incurred and plan how these can be met, eventually when the project starts to generate income, the proceeds from the same project will be considered as the main source of the debt repayment.
With a focus on growth, FCM Bank is the right business partner for these investors. FCM is a Corporate Bank headquartered and operating in Malta with its core business in property lending. Local investors in this sector who have already partnered with us are engaged in projects varying from residential, commercial and hotels.