The new product is targeted specifically at new build residential developments with a sub-£1m funding requirement and reflects Paragon’s desire to offer its development finance proposition to those housebuilders and developers with smaller projects. It will also enable Paragon to support clients during the earlier stages of their business growth and as they mature to larger-scale projects. As a business focused on customer service, Paragon Development Finance has formed a dedicated team and built a streamlined process for these deals to ensure it can deliver quick decision making and efficient loan execution. During 2020, the business hired five new Relationship Directors and four new Portfolio Managers to support both the launch of this new product and growth of the existing business. The Credit and Operations function was also expanded.
Robert Orr, Managing Director of Development Finance at Paragon, said: "Offering this sub £1m loan product will enable us to provide more tailored support to smaller house builders whilst aiding the growth of their business. This complements our existing residential development product range of loans from £1m to £30m. It also provides exciting opportunities for Paragon as a place to work, with added roles and progression opportunities as part of the enhanced team and product range."
"Developers want to work with a bank that is consistent, financially strong and has the experience and expertise to support their business. We have remained active throughout the coronavirus pandemic and our clients appreciate that commitment to the market. Our business pipeline is strong and the widening of lending criteria further supports our dedication to this sector."
Paragon's Development Finance division experienced strong growth last year with its net loan book increasing by 20% during 2020 to £609m.