Property development is a business defined by speed. Opportunities arise suddenly, competition is fierce, and those who can move first are usually the ones who win. Yet, for many developers, the greatest challenge lies in the early stages of a project. Securing land, paying deposits, and funding planning applications all require substantial liquidity at a point when traditional lenders are often unwilling to step in.

In 2025, more developers are turning to Securities Backed Lending (SBL) as a solution. By unlocking liquidity from an existing portfolio of equities, bonds, or funds, they can secure the capital needed to progress projects without selling investments or waiting for slow-moving bank facilities. The result is a flexible, fast, and efficient funding option that fills a critical gap in the developer’s toolkit.

Why Early-Stage Developer Funding Is Challenging

Traditional development finance is rarely available until later in the cycle. Most lenders require planning approval, signed contracts, or detailed appraisals before releasing funds. By then, the most important opportunities may already have passed. Developers who cannot meet early commitments often lose sites to competitors with cash on hand.

Bridging loans can help, but they typically require property security and involve valuations and legal processes that take time. For developers whose wealth sits in investment portfolios rather than unencumbered property, these facilities are not always ideal.

SBL changes this dynamic. It allows developers to leverage portfolios without liquidating them, raising cash quickly to cover deposits, professional fees, or other costs that come before construction finance becomes available.

How Developers Use Securities Backed Lending

For developers, SBL works in three main ways, though in practice the lines often blur.

The first is direct use for acquisitions. A developer identifying a prime site can draw down liquidity from a securities portfolio to pay the deposit and exchange contracts within days. In competitive bidding situations, that speed is critical.

The second is covering pre-development costs. Legal fees, architects, surveys, planning consultants, and local authority applications all require upfront capital. Developers may be reluctant to tie up cash reserves or liquidate investments to fund these items. An SBL facility provides the flexibility to meet these costs while leaving portfolios intact.

The third is bridging to longer-term solutions. SBL is often used to cover the period between acquisition and the release of structured development finance. Once planning approval is granted or pre-sales achieved, the developer refinances into a conventional facility and repays the SBL. In this way, SBL functions like a bridge — not against property, but against securities.

A Developer in Action: A Case Example

Consider a developer with a £20 million portfolio managed in Switzerland. They identify a £7 million site in London with strong potential but face a seller demanding exchange within two weeks. No development lender will provide funds in that timeframe.

By arranging a securities backed facility against the Swiss portfolio, the developer unlocks £10 million at 50 percent loan-to-value. They use £2 million to secure the deposit and legal costs and earmark another £1 million for planning expenses. With the site secured, they proceed through planning and, once consent is granted, refinance into a structured £15 million development loan, repaying the SBL in full.

This case highlights the strength of SBL: it allows developers to act decisively, secure opportunities, and keep momentum without waiting on traditional funding.

Why Developers Are Turning to SBL in 2025

The appeal of SBL for developers lies in a combination of speed, flexibility, and preservation of capital. It can often be arranged in days, giving developers the ability to act like cash buyers. Unlike mortgages or development loans, it is not restricted by construction milestones, making it ideally suited for early-stage costs that banks often overlook.

Equally important, it avoids the need to liquidate investment portfolios. For developers with carefully structured wealth strategies, selling down securities to release cash can create unwanted tax liabilities and undermine long-term returns. By borrowing against the portfolio instead, they retain exposure to growth while unlocking liquidity for immediate needs.

In 2025, the ability to move quickly has become even more important. Competition for sites is intense, and the cost of delays is high. Developers who can demonstrate certainty of funds are in a stronger position to negotiate and secure opportunities.

Understanding the Risks

As with all forms of borrowing, SBL carries risks, and developers must approach it with care.

The most obvious is market volatility. If the value of the pledged portfolio falls, lenders may demand additional collateral or partial repayment through a margin call. For a developer already juggling project costs, this can create unwelcome liquidity pressure. Maintaining a cash buffer outside the pledged assets is therefore essential.

Another consideration is facility duration. Most SBL loans run for one to three years. Developers need a clear exit plan, whether that is refinancing into development finance, selling assets, or using other liquidity sources. Without such a plan, the facility can become a liability rather than an advantage.

Eligibility of assets is also an issue. Not all securities are acceptable to lenders. Portfolios concentrated in volatile sectors, such as technology or emerging markets, may support lower loan-to-value ratios. Developers must ensure they understand which assets qualify and how lenders value them.

How SBL Fits Into Wider Development Strategies

For many developers, SBL is not a replacement for traditional funding but a complement to it. It occupies a niche alongside bridging finance, development loans, and post-development refinancing.

Think of it as a first step: the liquidity that gets the deal moving before the larger facilities are ready. Developers who integrate SBL into their strategy can secure sites quickly, maintain momentum during planning, and transition smoothly into construction finance. This layered approach provides resilience, flexibility, and speed in a market where all three are essential.

The 2025 Market Context

The rise of SBL in development funding reflects broader trends in the market. The scarcity of land with planning potential has intensified competition. Sellers are increasingly unwilling to wait for buyers to arrange traditional finance. At the same time, banks remain cautious, tightening early-stage lending criteria in response to economic uncertainty.

For international developers, the challenge is compounded by cross-border issues. Many hold wealth in offshore portfolios but struggle to demonstrate income in a way that satisfies UK lenders. SBL provides a direct solution by focusing on assets rather than income. As seen in the growth of international property finance, mobility of wealth is shaping new approaches to lending, and SBL is at the forefront of this shift.

How Willow Can Help

At Willow Private Finance, we work with developers across the UK and internationally to structure securities backed lending that supports their projects. Our role goes beyond arranging facilities. We help developers assess whether SBL is the right tool, negotiate the best terms with lenders, and ensure the facility integrates smoothly with subsequent funding stages.

For developers competing in time-sensitive acquisition windows, we deliver liquidity quickly and discreetly. For those with international portfolios, we structure cross-border solutions that release cash in the UK without disrupting wealth management arrangements abroad. And for developers managing multiple projects, we design layered strategies that combine SBL, bridging, and development finance in a coherent framework.

In short, we provide developers with the financial agility to act decisively, secure opportunities, and keep projects on track.

📞 Want Help Navigating Today’s Market?

Book a free strategy call with one of our mortgage specialists.

We’ll help you find the smartest way forward—whatever rates do next.