#Development Finance

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ECOWAS Bank Opens First Country Office in Côte d’Ivoire to Deepen Regional Investment

Lagos, Nigeria – May 13, 2025 | By Naija247news Business Desk In a strategic move to expand its footprint across West Africa, the ECOWAS Bank for Investment and Development (EBID) has signed an agreement with the Government of Côte d’Ivoire to establish its first-ever country office in Abidjan. The milestone development was confirmed in a statement released by EBID on Tuesday and made available…

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Swedfund, Finnfund and BIO join IFC-led syndication to invest in Amartha, improving access to finance for women in rural Indonesia

Development Finance Institutions Swedfund, Finnfund, and the Belgian Investment Company for Developing Countries (BIO), have jointly provided a loan of USD 55 million to Amartha, an Indonesian microfinance fintech company, to drive financial inclusion for women entrepreneurs. The loan is part of a broader syndicated facility of up to USD 199 million, led by the International Finance Corporation…

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Development Management

Challis Capital provides you end to end property development management solutions. Contact us to discuss how our experienced and highly skilled Development Management team can maximize the potential of your project.

visit us : https://www.challiscapital.com.au/en/real-estate/property-development-management/

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Home Loans Cash Out

Visit us today if you want to raise cash against your home? At GCC home loans, we offer equity release and home cash out loans. Contact us 02 8355 1880

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Development Finance: A Comprehensive Guide to Property Development Finance

Introduction

Development finance plays a crucial role in the construction and real estate sector, enabling developers to bring their projects to life. Whether you're planning a new residential complex, commercial property, or mixed-use development, securing the right funding is essential. Property development finance provides the necessary capital to cover land acquisition, construction costs, and other associated expenses. In this guide, we will explore the key aspects of development finance, its benefits, and how it can be leveraged to maximize returns on investment.

What is Development Finance?

Development finance is a short-term funding solution designed to support property developers and investors throughout the construction phase. Unlike traditional mortgages, which are long-term loans, property development finance is structured to provide staged payments based on project milestones. Lenders assess the viability of a development based on factors such as location, demand, planning permissions, and exit strategies.

This type of finance is particularly beneficial for developers who need flexible funding options to manage construction costs effectively. It is used for a wide range of projects, including residential buildings, commercial developments, and refurbishment projects.

Types of Development Finance

Senior Debt Finance – The primary source of funding that covers the majority of construction costs.

Mezzanine Finance – A secondary loan that bridges the gap between senior debt and the developer's own capital.

Joint Venture Finance – An arrangement where investors and developers share the risks and profits of a project.

Bridging Loans – Short-term loans used to secure property purchases before securing long-term funding.

Equity Finance – Investors provide capital in exchange for a stake in the development.

The Benefits of Development Finance

Flexible Funding: Unlike traditional loans, development finance offers staged payments aligned with project phases.

High Loan-to-Value (LTV) Ratios: Many lenders offer high LTVs, reducing the amount of capital developers need to invest upfront.

Fast Approval Process: Lenders specializing in property development finance provide quicker approvals compared to traditional banks.

Access to Larger Projects: Developers can undertake larger projects that may have been financially unfeasible without external funding.

Potential for High Returns: Successful developments can yield significant profits, making the financing costs worthwhile.

Eligibility for Development Finance

To secure development finance, developers must meet certain criteria, including:

A viable project plan with clear projections.

Planning permissions and regulatory approvals.

Experience in property development (although first-time developers may still qualify with a strong proposal).

A well-defined exit strategy, such as selling the completed property or refinancing with a long-term mortgage.

A minimum personal financial contribution to demonstrate commitment.

How to Apply for Development Finance

Prepare a Detailed Business Plan: This should outline project costs, timelines, potential risks, and profit expectations.

Secure Planning Permission: Ensure all necessary approvals are in place before applying for funding.

Compare Lenders: Research different lenders offering property development finance to find the best terms.

Submit an Application: Provide all required documents, including financial statements and property details.

Agree on Terms: Negotiate interest rates, repayment schedules, and drawdown structures with the lender.

Start the Project: Once funds are disbursed, commence construction while adhering to the agreed milestones.

Common Challenges in Development Finance

While development finance is a valuable tool, developers may face challenges such as:

Rising Interest Rates: Fluctuations in market rates can impact borrowing costs.

Project Delays: Construction setbacks can lead to additional financial burdens.

Strict Lending Criteria: Some lenders have stringent requirements that can make securing finance challenging.

Cash Flow Management: Developers must ensure efficient cash flow management to prevent funding shortfalls.

To mitigate these risks, it’s crucial to work with experienced financial advisors who can help navigate the complexities of property development finance.

Choosing the Right Development Finance Lender

Selecting the right lender is crucial for the success of any development project. When evaluating options, consider:

Reputation and Experience: Work with established lenders specializing in property development finance.

Interest Rates and Fees: Compare different lenders to secure the most competitive rates.

Loan Flexibility: Ensure the lender offers tailored solutions that align with your project requirements.

Customer Support: A responsive lender can provide guidance throughout the project lifecycle.

Conclusion

For property developers looking to undertake ambitious construction projects, development finance provides an essential funding solution. Whether you're a seasoned developer or new to the industry, securing the right property development finance can make all the difference in completing projects successfully. By understanding the various financing options, eligibility requirements, and potential challenges, developers can make informed decisions that drive profitability and long-term success. If you’re considering development finance, consult a specialist lender like Howe Commercial Finance to explore the best options tailored to your project needs.

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𝐻𝑂𝑊 𝑇𝑂 𝐺𝐿𝑂𝑊 𝑈𝑃- 2𝑁𝐷 𝑄𝑈𝐴𝑅𝑇𝐸𝑅

𝑁𝑜 𝑀𝑜𝑟𝑒 𝐸𝑥𝑐𝑢𝑠𝑒𝑠. 𝐼𝑡'𝑠 𝑇𝑖𝑚𝑒 𝑡𝑜 𝐺𝑒𝑡 𝐼𝑡 𝑇𝑜𝑔𝑒𝑡ℎ𝑒𝑟.

𝐿𝑒𝑡'𝑠 𝑏𝑒 𝑟𝑒𝑎𝑙, 𝑖𝑓 𝑦𝑜𝑢'𝑟𝑒 𝑛𝑜𝑡 𝑎𝑐𝑡𝑖𝑣𝑒𝑙𝑦 𝑤𝑜𝑟𝑘𝑖𝑛𝑔 𝑜𝑛 𝑖𝑚𝑝𝑟𝑜𝑣𝑖𝑛𝑔 𝑦𝑜𝑢𝑟 𝑙𝑖𝑓𝑒, 𝑦𝑜𝑢'𝑟𝑒 𝑗𝑢𝑠𝑡 𝑤𝑎𝑠𝑡𝑖𝑛𝑔 𝑦𝑜𝑢𝑟 𝑡𝑖𝑚𝑒. 𝐴 𝑔𝑙𝑜𝑤-𝑢𝑝 𝑖𝑠𝑛'𝑡 𝑗𝑢𝑠𝑡 𝑎𝑏𝑜𝑢𝑡 𝑙𝑜𝑜𝑘𝑖𝑛𝑔 𝑔𝑜𝑜𝑑 ; 𝑖𝑡'𝑠 𝑎𝑏𝑜𝑢𝑡 𝑏𝑒𝑐𝑜𝑚𝑖𝑛𝑔 𝑎 𝑏𝑒𝑡𝑡𝑒𝑟 𝑣𝑒𝑟𝑠𝑖𝑜𝑛 𝑜𝑓 𝑦𝑜𝑢𝑟𝑠𝑒𝑙𝑓 𝑖𝑛 𝑒𝑣𝑒𝑟𝑦 𝑎𝑠𝑝𝑒𝑐𝑡- 𝑦𝑜𝑢𝑟 𝑚𝑖𝑛𝑑, ℎ𝑒𝑎𝑙𝑡ℎ, 𝑐𝑎𝑟𝑒𝑒𝑟, 𝑓𝑖𝑛𝑎𝑛𝑐𝑒𝑠, 𝑒𝑛𝑣𝑖𝑟𝑒𝑛𝑚𝑒𝑛𝑡, 𝑝𝑒𝑟𝑠𝑜𝑛𝑎𝑙 𝑔𝑟𝑜𝑤𝑡ℎ, 𝑎𝑛𝑑 𝑡𝑖𝑚𝑒 𝑚𝑎𝑛𝑎𝑔𝑒𝑚𝑒𝑛𝑡.

𝑌𝑜𝑢 𝑔𝑒𝑡 𝑓𝑜𝑢𝑟 𝑞𝑢𝑎𝑟𝑡𝑒𝑟𝑠 𝑎 𝑦𝑒𝑎𝑟. 𝑇ℎ𝑎𝑡 𝑚𝑒𝑎𝑛𝑠 𝑦𝑜𝑢 ℎ𝑎𝑣𝑒 𝑛𝑜 𝑒𝑥𝑐𝑢𝑠𝑒 𝑛𝑜𝑡 𝑡𝑜 𝑖𝑚𝑝𝑟𝑜𝑣𝑒 𝑎𝑡 𝑙𝑒𝑎𝑠𝑡 𝑡𝑤𝑜 𝑎𝑟𝑒𝑎𝑠 𝑒𝑣𝑒𝑟𝑦 𝑡ℎ𝑟𝑒𝑒 𝑚𝑜𝑛𝑡ℎ𝑠. 𝐼𝑓 𝑦𝑜𝑢 𝑐𝑎𝑛'𝑡 𝑐𝑜𝑚𝑚𝑖𝑡 𝑡𝑜 𝑡ℎ𝑎𝑡, 𝑑𝑜𝑛'𝑡 𝑐𝑜𝑚𝑝𝑙𝑎𝑖𝑛 𝑎𝑏𝑜𝑢𝑡 𝑏𝑒𝑖𝑛𝑔 𝑠𝑡𝑢𝑐𝑘.

𝐴𝑃𝑅𝐼𝐿-𝑀𝐴𝑌-𝐽𝑈𝑁𝐸

��𝐸𝑇 𝑆𝐸𝑅𝐼𝑂𝑈𝑆 𝑂𝑅 𝑆𝑇𝐴𝑌 𝑇𝐻𝐸 𝑆𝐴𝑀𝐸

✰ 𝐶ℎ𝑜𝑜𝑠𝑒 2 𝑎𝑟𝑒𝑎𝑠 𝑜𝑓 𝑦𝑜𝑢𝑟 𝑙𝑖𝑓𝑒 𝑡ℎ𝑎𝑡 𝑛𝑒𝑒𝑑 𝑤𝑜𝑟𝑘 (𝑦𝑒𝑠, 𝑎𝑐𝑡𝑢𝑎𝑙𝑙𝑦 𝑐ℎ𝑜𝑜𝑠𝑒).

✰ 𝑆𝑒𝑡 3 𝑐𝑙𝑒𝑎𝑟 𝑎𝑐𝑡𝑖𝑜𝑛 𝑠𝑡𝑒𝑝𝑠 𝑓𝑜𝑟 𝑒𝑎𝑐ℎ. 𝑁𝑜 𝑣𝑎𝑔𝑢𝑒 "𝐼'𝑙𝑙 𝑇𝑟𝑦" 𝑛𝑜𝑛𝑠𝑒𝑛𝑠𝑒.

✰ 𝑇𝑟𝑎𝑐𝑘 𝑦𝑜𝑢𝑟 𝑝𝑟𝑜𝑔𝑟𝑒𝑠𝑠 (𝑎 ℎ𝑎𝑏𝑖𝑡 𝑡𝑟𝑎𝑐𝑘𝑒𝑟 𝑜𝑟 𝑗𝑜𝑢𝑟𝑛𝑎𝑙 𝑤𝑜𝑟𝑘𝑠 𝑏𝑒𝑠𝑡!)

✰ 𝑆ℎ𝑜𝑤 𝑢𝑝 𝑒𝑣𝑒𝑟𝑦 𝑑𝑎𝑦. 𝑁𝑜𝑡 𝑗𝑢𝑠𝑡 𝑤ℎ𝑒𝑛 𝑦𝑜𝑢 𝑓𝑒𝑒𝑙 𝑚𝑜𝑡𝑖𝑣𝑎𝑡𝑒𝑑.

✰ 𝑅𝑒𝑤𝑎𝑟𝑑 𝑦𝑜𝑢𝑟𝑠𝑒𝑙𝑓- 𝐵𝑢𝑡 𝑜𝑛𝑙𝑦 𝑖𝑓 𝑦𝑜𝑢 𝐸𝐴𝑅𝑁 𝑖𝑡

𝑇𝑖𝑝: 𝑇𝑟𝑎𝑐𝑘 𝑡ℎ𝑒 𝑡𝑖𝑚𝑒𝑠 𝑦𝑜𝑢 𝑎𝑙𝑚𝑜𝑠𝑡 𝑔𝑎𝑣𝑒 𝑢𝑝, 𝑎 𝑣𝑖𝑠𝑖𝑏𝑙𝑒 𝑐ℎ𝑎𝑟𝑡 𝑖𝑠 𝑏𝑒𝑠𝑡. 𝑇ℎ𝑖𝑠 𝑖𝑠 𝑗𝑢𝑠𝑡 𝑎 𝑟𝑒𝑚𝑖𝑛𝑑𝑒𝑟 𝑡ℎ𝑎𝑡 𝑦𝑜𝑢 𝑎𝑟𝑒 𝑑𝑜𝑖𝑛𝑔 𝑔𝑟𝑒𝑎𝑡 𝑎𝑛𝑑 𝑖𝑡 𝑚𝑜𝑡𝑖𝑣𝑎𝑡𝑒𝑠 𝑦𝑜𝑢 𝑡𝑜 𝑘𝑒𝑒𝑝 𝑔𝑜𝑖𝑛𝑔!

𝐶𝐻𝑂𝑂𝑆𝐸 𝑌𝑂𝑈𝑅 𝐴𝑅𝐸𝐴𝑆 𝑂𝐹 𝐼𝑀𝑃𝑅𝑂𝑉𝐸𝑀𝐸𝑁𝑇

𝐻𝑒𝑟𝑒 𝑎𝑟𝑒 𝑠𝑜𝑚𝑒 𝑖𝑑𝑒𝑎𝑠 𝑡𝑜 ℎ𝑒𝑙𝑝 𝑦𝑜𝑢 𝑑𝑒𝑐𝑖𝑑𝑒:

𝐶𝑎𝑟𝑒𝑒𝑟 𝐺𝑜𝑎𝑙𝑠 - 𝐿𝑒𝑣𝑒𝑙 𝑈𝑝 𝑃𝑟𝑜𝑓𝑒𝑠𝑠𝑖𝑜𝑛𝑎𝑙𝑙𝑦

𝑁𝑒𝑔𝑜𝑡𝑖𝑎𝑡𝑒 𝑎 𝑟𝑎𝑖𝑠𝑒 𝑜𝑟 𝑝𝑟𝑜𝑚𝑜𝑡𝑖𝑜𝑛 - 𝑆𝑒𝑡 𝑢𝑝 𝑎 𝑚𝑒𝑒𝑡𝑖𝑛𝑔 𝑤𝑖𝑡ℎ 𝑦𝑜𝑢𝑟 𝑏𝑜𝑠𝑠.

𝑈𝑝𝑔𝑟𝑎𝑑𝑒 𝑦𝑜𝑢𝑟 𝑠𝑘𝑖𝑙𝑙𝑠 - 𝑇𝑎𝑘𝑒 𝑎𝑛 𝑜𝑛𝑙𝑖𝑛𝑒 𝑐𝑜𝑢𝑟𝑠𝑒 𝑜𝑟 𝑎𝑡𝑡𝑒𝑛𝑑 𝑎 𝑤𝑜𝑟𝑘𝑠ℎ𝑜𝑝.

𝐽𝑜𝑏 𝑠𝑒𝑎𝑟𝑐ℎ - 𝐼𝑓 𝑦𝑜𝑢'𝑟𝑟 𝑢𝑛ℎ𝑎𝑝𝑝𝑦, 𝑒𝑥𝑝𝑙𝑜𝑟𝑒 𝑛𝑒𝑤 𝑜𝑝𝑝𝑜𝑟𝑡𝑢𝑛𝑖𝑡𝑖𝑒𝑠.

𝐸𝑥𝑝𝑎𝑛𝑑 𝑦𝑜𝑢𝑟 𝑛𝑒𝑡𝑤𝑜𝑟𝑘 - 𝐶𝑜𝑛𝑛𝑒𝑐𝑡 𝑤𝑖𝑡ℎ 𝑚𝑒𝑛𝑡𝑜𝑟𝑠 𝑜𝑟 𝑖𝑛𝑑𝑢𝑠𝑡𝑟𝑦 𝑝𝑟𝑜𝑓𝑒𝑠𝑠𝑖𝑜𝑛𝑎𝑙𝑠.

𝑆𝑒𝑡 𝑤𝑜𝑟𝑘-𝑙𝑖𝑓𝑒 𝑏𝑜𝑢𝑛𝑑𝑎𝑟𝑖𝑒𝑠 - 𝑃𝑟𝑜𝑡𝑒𝑐𝑡 𝑦𝑜𝑢𝑟 𝑚𝑒𝑛𝑡𝑎𝑙 ℎ𝑒𝑎𝑙𝑡ℎ.

𝐹𝑖𝑛𝑎𝑛𝑐𝑒𝑠 - 𝑆𝑒𝑐𝑢𝑟𝑒 𝑇ℎ𝑒 𝐵𝑎𝑔

𝑅𝑒𝑣𝑖𝑒𝑤 𝑙𝑎𝑠𝑡 𝑚𝑜𝑛𝑡ℎ'𝑠 𝑒𝑥𝑝𝑒𝑛𝑠𝑒𝑠 - 𝐾𝑛𝑜𝑤 𝑤ℎ𝑒𝑟𝑒 𝑦𝑜𝑢𝑟 𝑚𝑜𝑛𝑒𝑦 𝑖𝑠 𝑔𝑜𝑖𝑛𝑔.

𝐶𝑟𝑒𝑎𝑡𝑒 𝑎 𝑟𝑒𝑎𝑙𝑖𝑠𝑡𝑖𝑐 𝑏𝑢𝑑𝑔𝑒𝑡 - 𝑆𝑡𝑖𝑐𝑘 𝑡𝑜 𝑎 𝑝𝑙𝑎𝑛 𝑡ℎ𝑎𝑡 𝑤𝑜𝑟𝑘𝑠 𝑓𝑜𝑟 𝑦𝑜𝑢.

𝑈𝑠𝑒 𝑠𝑒𝑝𝑎𝑟𝑎𝑡𝑒 𝑐𝑎𝑟𝑑𝑠/𝑎𝑐𝑐𝑜𝑢𝑛𝑡𝑠 𝑡𝑜 𝑚𝑎𝑛𝑎𝑔𝑒 𝑠𝑝𝑒𝑛𝑑𝑖𝑛𝑔.

𝐵𝑖𝑙𝑙𝑠 - 𝑜𝑛𝑙𝑦 𝑐𝑎𝑟𝑑.

𝐵𝑢𝑑𝑔𝑒𝑡𝑒𝑑 𝑠𝑝𝑒𝑛𝑑𝑖𝑛𝑔 𝑐𝑎𝑟𝑑.

𝑆𝑎𝑣𝑖𝑛𝑔𝑠 𝑎𝑐𝑐𝑜𝑢𝑛𝑡.

𝑆𝑡𝑎𝑟𝑡 𝑆𝑎𝑣𝑖𝑛𝑔! - 𝐸𝑣𝑒𝑛 𝑠𝑚𝑎𝑙𝑙 𝑎𝑚𝑜𝑢𝑛𝑡𝑠 𝑚𝑎𝑡𝑡𝑒𝑟.

𝐶𝑎𝑛𝑐𝑒𝑙 𝑢𝑛𝑛𝑒𝑐𝑒𝑠𝑠𝑎𝑟𝑦 𝑠𝑢𝑏𝑠𝑐𝑟𝑖𝑝𝑡𝑖𝑜𝑛𝑠 - 𝐶𝑢𝑡 𝑜𝑢𝑡 𝑤ℎ𝑎𝑡 𝑦𝑜𝑢 𝑑𝑜𝑛'𝑡 𝑢𝑠𝑒.

𝑃𝑎𝑦 𝑏𝑖𝑙𝑙𝑠 𝑜𝑛 𝑡𝑖𝑚𝑒 - 𝐴𝑣𝑜𝑖𝑑 𝑙𝑎𝑡𝑒 𝑓𝑒𝑒𝑠.

𝐶𝑜𝑜𝑘 𝑎𝑡 ℎ𝑜𝑚𝑒 - 𝑆𝑎𝑣𝑒 𝑚𝑜𝑛𝑒𝑦 𝑎𝑛𝑑 𝑒𝑎𝑡 ℎ𝑒𝑎𝑙𝑡ℎ𝑖𝑒𝑟.

𝑃𝑅𝐴𝐶𝑇𝐼𝐶𝐸 𝐺𝑂𝐴𝐿 𝑆𝐸𝑇𝑇𝐼𝑁𝐺 - 𝑇𝐻𝐸 𝑅𝐼𝐺𝐻𝑇 𝑊𝐴𝑌

𝑆𝑒𝑡𝑡𝑖𝑛𝑔 𝑔𝑜𝑎𝑙𝑠 𝑐𝑎𝑛 𝑓𝑒𝑒𝑙 𝑜𝑣𝑒𝑟𝑤ℎ𝑒𝑙𝑚𝑖𝑛𝑔, 𝑏𝑢𝑡 𝑠𝑖𝑚𝑝𝑙𝑖𝑐𝑖𝑡𝑦 𝑖𝑠 𝑘𝑒𝑦.

✰ 𝑃𝑖𝑐𝑘 𝑗𝑢𝑠𝑡 2 𝑓𝑜𝑐𝑢𝑠 𝑎𝑟𝑒𝑎𝑠 𝑡ℎ𝑖𝑠 𝑞𝑢𝑎𝑟𝑡𝑒𝑟 - 𝑑𝑜𝑛'𝑡 𝑜𝑣𝑒𝑟𝑙𝑜𝑎𝑑 𝑦𝑜𝑢𝑟𝑠𝑒𝑙𝑓.

✰ 𝐵𝑟𝑒𝑎𝑘 𝑖𝑡 𝑑𝑜𝑤𝑛 - 𝐶ℎ𝑜𝑜𝑠𝑒 2 𝑠𝑚𝑎𝑙𝑙 𝑠𝑡𝑒𝑝𝑠 𝑝𝑒𝑟 𝑚𝑜𝑛𝑡ℎ

✰ 𝑈𝑠𝑒 𝑎 𝑝𝑙𝑎𝑛𝑛𝑒𝑟 𝑜𝑟 𝑗𝑜𝑢𝑟𝑛𝑎𝑙 𝑡𝑜 𝑡𝑟𝑎𝑐𝑘 𝑝𝑟𝑜𝑔𝑟𝑒𝑠𝑠.

✰ 𝐶ℎ𝑒𝑐𝑘 𝑜𝑓𝑓 𝑎𝑐𝑐𝑜𝑚𝑝𝑙𝑖𝑠ℎ𝑚𝑒𝑛𝑡 - 𝐶𝑒𝑙𝑒𝑏𝑟𝑎𝑡𝑒 𝑠𝑚𝑎𝑙𝑙 𝑤𝑖𝑛𝑠.

✰ 𝑅𝑒𝑤𝑎𝑟𝑑 𝑦𝑜𝑢𝑟𝑠𝑒𝑙𝑓 𝑒𝑣𝑒𝑟𝑦 𝑡𝑖𝑚𝑒 𝑦𝑜𝑢 𝑑𝑜𝑛'𝑡 𝑞𝑢𝑖𝑡!

𝑅𝐸𝑊𝐴𝑅𝐷 𝑌𝑂𝑈𝑅𝑆𝐸𝐿𝐹 𝐵𝐸𝐶𝐴𝑈𝑆𝐸 𝑌𝑂𝑈 𝐷𝐸𝑆𝐸𝑅𝑉𝐸 𝐼𝑇

𝑦𝑜𝑢 𝑎𝑟𝑒 𝑤𝑜𝑟𝑘𝑖𝑛𝑔 ℎ𝑎𝑟𝑑, 𝑎𝑛𝑑 𝑝𝑟𝑜𝑔𝑟𝑒𝑠𝑠 𝑑𝑒𝑠𝑒𝑟𝑣𝑒𝑠 𝑐𝑒𝑙𝑒𝑏𝑟𝑎𝑡𝑖𝑜𝑛! 𝐻𝑒𝑟𝑒 𝑎𝑟𝑒 𝑎 𝑓𝑒𝑤 𝑤𝑎𝑦𝑠 𝑡𝑜 𝑡𝑟𝑒𝑎𝑡 𝑦𝑜𝑢𝑟𝑠𝑒𝑙𝑓:

𝑆𝑝𝑎 𝐷𝑎𝑦 : 𝑅𝑒𝑙𝑎𝑥, 𝑢𝑛𝑤𝑖𝑛𝑑, 𝑎𝑛𝑑 𝑟𝑒𝑐ℎ𝑎𝑟𝑔𝑒.

𝐷𝑎𝑡𝑒 𝑁𝑖𝑔ℎ𝑡 : 𝑆𝑜𝑙𝑜 𝑜𝑟 𝑤𝑖𝑡ℎ 𝑎 𝑙𝑜𝑣𝑒𝑑 𝑜𝑛𝑒, 𝑒𝑛𝑗𝑜𝑦 𝑎 𝑛𝑖𝑐𝑒 𝑚𝑒𝑎𝑙.

𝑀𝑜𝑣𝑖𝑒 𝑁𝑖𝑔ℎ𝑡 : 𝐶𝑜𝑧𝑦 𝑢𝑝 𝑤𝑖𝑡ℎ 𝑦𝑜𝑢𝑟 𝑓𝑎𝑣𝑜𝑟𝑖𝑡𝑒 𝑓𝑖𝑙𝑚.

𝑆ℎ𝑜𝑝𝑝𝑖𝑛𝑔 𝑆𝑝𝑟𝑒𝑒 : 𝐵𝑢𝑦 𝑦𝑜𝑢𝑟𝑠𝑒𝑙𝑓 𝑠𝑜𝑚𝑒𝑡ℎ𝑖𝑛𝑔 𝑛𝑖𝑐𝑒 (𝑤𝑖𝑡ℎ𝑖𝑛 𝑏𝑢𝑑𝑔𝑒𝑡!)

𝐹𝐼𝑁𝐴𝐿 𝑅𝐸𝑀𝐼𝑁𝐷𝐸𝑅

𝐺𝑟𝑜𝑤𝑡ℎ 𝑖𝑠𝑛'𝑡 𝑎𝑏𝑜𝑢𝑡 𝑝𝑒𝑟𝑓𝑒𝑐𝑡𝑖𝑜𝑛- 𝑖𝑡'𝑠 𝑎𝑏𝑜𝑢𝑡 𝑝𝑟𝑜𝑔𝑟𝑒𝑠𝑠. 𝑆𝑡𝑎𝑦 𝑐𝑜𝑛𝑠𝑖𝑠𝑡𝑒𝑛𝑡, 𝑡𝑟𝑎𝑐𝑘 𝑦𝑜𝑢𝑟 𝑤𝑖𝑛𝑠, 𝑎𝑛𝑑 𝑟𝑒𝑚𝑒𝑚𝑏𝑒𝑟 : 𝐸𝑣𝑒𝑟𝑦 𝑠𝑚𝑎𝑙𝑙 𝑠𝑡𝑒𝑝 𝑎𝑑𝑑𝑠 𝑢𝑝 𝑡𝑜 𝑎 𝑏𝑖𝑔 𝑡𝑟𝑎𝑛𝑠𝑓𝑜𝑟𝑚𝑎𝑡𝑖𝑜𝑛.

[mostlysignssomeportents]

Shifting $677m from the banks to the people, every year, forever

I'll be in TUCSON, AZ from November 8-10: I'm the GUEST OF HONOR at the TUSCON SCIENCE FICTION CONVENTION.

"Switching costs" are one of the great underappreciated evils in our world: the more it costs you to change from one product or service to another, the worse the vendor, provider, or service you're using today can treat you without risking your business.

Businesses set out to keep switching costs as high as possible. Literally. Mark Zuckerberg's capos send him memos chortling about how Facebook's new photos feature will punish anyone who leaves for a rival service with the loss of all their family photos – meaning Zuck can torment those users for profit and they'll still stick around so long as the abuse is less bad than the loss of all their cherished memories:

https://www.eff.org/deeplinks/2021/08/facebooks-secret-war-switching-costs

It's often hard to quantify switching costs. We can tell when they're high, say, if your landlord ties your internet service to your lease (splitting the profits with a shitty ISP that overcharges and underdelivers), the switching cost of getting a new internet provider is the cost of moving house. We can tell when they're low, too: you can switch from one podcatcher program to another just by exporting your list of subscriptions from the old one and importing it into the new one:

https://pluralistic.net/2024/10/16/keep-it-really-simple-stupid/#read-receipts-are-you-kidding-me-seriously-fuck-that-noise

But sometimes, economists can get a rough idea of the dollar value of high switching costs. For example, a group of economists working for the Consumer Finance Protection Bureau calculated that the hassle of changing banks is costing Americans at least $677m per year (see page 526):

https://files.consumerfinance.gov/f/documents/cfpb_personal-financial-data-rights-final-rule_2024-10.pdf

The CFPB economists used a very conservative methodology, so the number is likely higher, but let's stick with that figure for now. The switching costs of changing banks – determining which bank has the best deal for you, then transfering over your account histories, cards, payees, and automated bill payments – are costing everyday Americans more than half a billion dollars, every year.

Now, the CFPB wasn't gathering this data just to make you mad. They wanted to do something about all this money – to find a way to lower switching costs, and, in so doing, transfer all that money from bank shareholders and executives to the American public.

And that's just what they did. A newly finalized Personal Financial Data Rights rule will allow you to authorize third parties – other banks, comparison shopping sites, brokers, anyone who offers you a better deal, or help you find one – to request your account data from your bank. Your bank will be required to provide that data.

I loved this rule when they first proposed it:

https://pluralistic.net/2024/06/10/getting-things-done/#deliverism

And I like the final rule even better. They've really nailed this one, even down to the fine-grained details where interop wonks like me get very deep into the weeds. For example, a thorny problem with interop rules like this one is "who gets to decide how the interoperability works?" Where will the data-formats come from? How will we know they're fit for purpose?

This is a super-hard problem. If we put the monopolies whose power we're trying to undermine in charge of this, they can easily cheat by delivering data in uselessly obfuscated formats. For example, when I used California's privacy law to force Mailchimp to provide list of all the mailing lists I've been signed up for without my permission, they sent me thousands of folders containing more than 5,900 spreadsheets listing their internal serial numbers for the lists I'm on, with no way to find out what these lists are called or how to get off of them:

https://pluralistic.net/2024/07/22/degoogled/#kafka-as-a-service

So if we're not going to let the companies decide on data formats, who should be in charge of this? One possibility is to require the use of a standard, but again, which standard? We can ask a standards body to make a new standard, which they're often very good at, but not when the stakes are high like this. Standards bodies are very weak institutions that large companies are very good at capturing:

https://pluralistic.net/2023/04/30/weak-institutions/

Here's how the CFPB solved this: they listed out the characteristics of a good standards body, listed out the data types that the standard would have to encompass, and then told banks that so long as they used a standard from a good standards body that covered all the data-types, they'd be in the clear.

Once the rule is in effect, you'll be able to go to a comparison shopping site and authorize it to go to your bank for your transaction history, and then tell you which bank – out of all the banks in America – will pay you the most for your deposits and charge you the least for your debts. Then, after you open a new account, you can authorize the new bank to go back to your old bank and get all your data: payees, scheduled payments, payment history, all of it. Switching banks will be as easy as switching mobile phone carriers – just a few clicks and a few minutes' work to get your old number working on a phone with a new provider.

This will save Americans at least $677 million, every year. Which is to say, it will cost the banks at least $670 million every year.

Naturally, America's largest banks are suing to block the rule:

https://www.americanbanker.com/news/cfpbs-open-banking-rule-faces-suit-from-bank-policy-institute

Of course, the banks claim that they're only suing to protect you, and the $677m annual transfer from their investors to the public has nothing to do with it. The banks claim to be worried about bank-fraud, which is a real thing that we should be worried about. They say that an interoperability rule could make it easier for scammers to get at your data and even transfer your account to a sleazy fly-by-night operation without your consent. This is also true!

It is obviously true that a bad interop rule would be bad. But it doesn't follow that every interop rule is bad, or that it's impossible to make a good one. The CFPB has made a very good one.

For starters, you can't just authorize anyone to get your data. Eligible third parties have to meet stringent criteria and vetting. These third parties are only allowed to ask for the narrowest slice of your data needed to perform the task you've set for them. They aren't allowed to use that data for anything else, and as soon as they've finished, they must delete your data. You can also revoke their access to your data at any time, for any reason, with one click – none of this "call a customer service rep and wait on hold" nonsense.

What's more, if your bank has any doubts about a request for your data, they are empowered to (temporarily) refuse to provide it, until they confirm with you that everything is on the up-and-up.

I wrote about the lawsuit this week for @eff@mastodon.social's Deeplinks blog:

https://www.eff.org/deeplinks/2024/10/no-matter-what-bank-says-its-your-money-your-data-and-your-choice

In that article, I point out the tedious, obvious ruses of securitywashing and privacywashing, where a company insists that its most abusive, exploitative, invasive conduct can't be challenged because that would expose their customers to security and privacy risks. This is such bullshit.

It's bullshit when printer companies say they can't let you use third party ink – for your own good:

https://arstechnica.com/gadgets/2024/01/hp-ceo-blocking-third-party-ink-from-printers-fights-viruses/

It's bullshit when car companies say they can't let you use third party mechanics – for your own good:

https://pluralistic.net/2020/09/03/rip-david-graeber/#rolling-surveillance-platforms

It's bullshit when Apple says they can't let you use third party app stores – for your own good:

https://www.eff.org/document/letter-bruce-schneier-senate-judiciary-regarding-app-store-security

It's bullshit when Facebook says you can't independently monitor the paid disinformation in your feed – for your own good:

https://pluralistic.net/2021/08/05/comprehensive-sex-ed/#quis-custodiet-ipsos-zuck

And it's bullshit when the banks say you can't change to a bank that charges you less, and pays you more – for your own good.

CFPB boss Rohit Chopra is part of a cohort of Biden enforcers who've hit upon a devastatingly effective tactic for fighting corporate power: they read the law and found out what they're allowed to do, and then did it:

https://pluralistic.net/2023/10/23/getting-stuff-done/#praxis

The CFPB was created in 2010 with the passage of the Consumer Financial Protection Act, which specifically empowers the CFPB to make this kind of data-sharing rule. Back when the CFPA was in Congress, the banks howled about this rule, whining that they were being forced to share their data with their competitors.

But your account data isn't your bank's data. It's your data. And the CFPB is gonna let you have it, and they're gonna save you and your fellow Americans at least $677m/year – forever.

If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2024/11/01/bankshot/#personal-financial-data-rights

[thefemigirl]

★ Level Up Your Finances - Prt 1

Hey, lovely! Let’s talk about something super important that often gets overlooked—financial literacy. I know, the term might sound intimidating or even boring, but trust me, it’s your golden ticket to independence, confidence, and making smart life choices.

As young women, understanding money empowers us to live life on our terms, invest in our futures, and say goodbye to financial stress. So, I have five of the easiest and most important ways to up your financial game!

▸ Set a Weekly List of Topics to Learn

Learning bit by bit makes the process less overwhelming and ensures you’re always growing your knowledge. Topics could include budgeting, saving, or investing.

Pick one topic today (e.g., “How does a savings account work?”) and spend 30 minutes researching it. Write down what you learn—it’s like building your own money cheat sheet!

▸ Watch Finance Videos Daily

Finance videos break down complex topics into bite-sized, relatable lessons. Plus, you can watch them while chilling on the sofa!

Search for beginner-friendly finance YouTube channels (like The Financial Diet) and aim to watch one 10-minute video a day.

▸ Talk to Friends About Money

There seems to be a big taboo on talking about money with other people. But you can start to break that! Start money conversations with trusted friends can teach you new tricks and remove the stigma around finances.

Ask a friend, “How do you manage your budget?” or “What’s your best money tip?” or "What's your girl money math tip?" It’s fun, helpful, and builds a support system.

▸ Read Economics Columns of News

Understanding the big picture helps you make better decisions about your own money, especially when it comes to trends like inflation or savings rates. This ties into Economics a bit, for those interested.

Subscribe to an email newsletter like Morning Brew or pick one day a week to read the money section of a news site.

▸ Listen to Money Podcasts

Podcasts are great for multitasking—you can learn while commuting, walking, or cleaning. Many are packed with actionable tips and inspiring stories.

Download an episode of HerMoney with Jean Chatzky or The Budget Mom Podcast and take notes on one tip you’d like to try.

Raising your financial literacy isn’t about becoming a math genius or sacrificing fun—it’s about taking small, consistent steps to feel more confident with money. Start with these tips, and remember, every little step counts.

You deserve a better future,

[thatgirlchallenge]

The aftermath of depression

We don't talk enough about the aftermath of depression, and even less about the aftermath of severe depression.

Depression is not something you easily grow out of. It leaves a scar so deeply ingrained in every aspect of your life that it becomes your “normality.”

In my case, my past severe depression destroyed my ability to build new friendships; I only feel comfortable with the friends who were in my life before all of this.

It also destroyed my discipline. I’m not trying to brag, but before my depressive episode, I had the kind of discipline that helped me reach the top academically in my country.

Now, I only see glimpses of that past discipline, and I rely heavily on the strengths I had before the depression.

But you know what? I’ve had enough of this. I let my depression define who I was for almost four years. Sure, there was a recovery period, but I’ve had it with the aftermath.

I think it’s time to claim my life back.

I beat depression when I lost weight. I beat depression when I still excelled academically. I beat depression when I managed to stay creatively engaged in my work. I beat depression when I began caring more about myself and regained some confidence.

Isn’t it time I reclaim my discipline and my social life?

After all, I still have what it takes to be “ranked number one in my class” and to rebuild my social abilities.

[goddessinnerglow]

Become Your Best Version Before 2025 - Day 13

Financial Planning and Budgeting

Hello Goddesses! I know that talking about money, can feel scary or boring, but after working on our stress management tools yesterday, it's perfect timing to address something that's often a huge source of stress for many of us: finances.

First things first: if thinking about money makes you want to hide under your blanket, you're not alone. But taking control of your finances isn't about becoming a math genius or never buying another coffee again. It's about making friends with your money so it can help you live your best life.

Let's break this down into bite-sized pieces that won't give you a headache:

Start Where You Are

Remember when you first learned to ride a bike? You didn't start by doing tricks, you started with training wheels. Money management is the same way! First step: just look at your current situation. Open those banking apps you've been avoiding. Take a deep breath and look at your statements. Knowledge is power, even if it's a bit scary at first.

The Money Map Exercise

Grab a piece of paper (or open your notes app) and let's do something simple:

Write down all your income sources

List your regular monthly expenses (yes, including those sneaky subscriptions!)

Don't forget those irregular expenses like annual fees or seasonal costs

Look at what's left (or what's missing)

Congratulations! You've just created your first basic budget outline.

The 50/30/20 Guideline

Here's a popular way to think about your money:

50% for needs (rent, groceries, utilities)

30% for wants (fun stuff, shopping, entertainment)

20% for future you (savings, debt payment, investments)

These numbers might not work for everyone, especially depending on where you live. The important thing is to have some kind of plan that works for YOU.

Smart Money Habits You Can Start Today

The 24-Hour Rule: For non-essential purchases over a certain amount (you decide the number!), wait 24 hours before buying. You'd be surprised how many "must-haves" become "maybe nots" overnight!

Bill Calendar: Set up a simple calendar with all your bill due dates. Future you will be so grateful!

Automate Your Savings: Even if it's just $5 a week, set up automatic transfers to a savings account. It's like hiding money from yourself!

Track Your Spending: For just one week, write down every single purchase. No judging, just observing. You might find some surprising patterns!

The Emergency Fund Challenge

Let's start building that safety net! Even $500 in savings can make a huge difference in an emergency. Start with a goal of saving just $25 this week. Too much? Start with $10. Too little? Make it $50. The amount isn't as important as getting started.

Money Goals That Make Sense

Instead of vague goals like "save more," try specific ones like:

Save enough for three months of basic expenses by December 2025

Pay off one credit card by summer

Create a "fun fund" for that hobby you've been wanting to try

Your financial journey is exactly that, YOURS. You don't need to compare yourself to anyone else. The person on Instagram showing off their investment portfolio might still be paying off massive debt. Focus on your own path!

Your mission for today:

Look at your bank statement (I know, scary, but you can do it!)

Pick ONE money habit from this post to try this week

Set ONE specific financial goal for 2025

See you tomorrow for Day 14! Remember, every financial decision you make today is a gift to your future self.

[luxuryandlilacs]

Excerpt from Smart Women Finish Rich by David Bach

[lily0819]

Exciting news from Arizona! The opening of the Eleven Mile Solar Center marks a $1 billion investment in clean energy by ACPMember OrstedUS The solar & energy storage project is set to power 65,000 homes. Take a look at the project celebration.

[challiscapitalweb]

What Is Capital Raising and Why Is It Essential for Business Growth?

Capital raising is a critical process for businesses seeking to expand, innovate, or sustain operations. It involves securing funds from investors, lenders, or financial institutions to support growth initiatives, acquisitions, or working capital needs. Businesses can raise capital through various methods, including equity financing, debt financing, or hybrid approaches.

Why Is Capital Raising Important?

Business Expansion – Companies looking to scale operations, enter new markets, or invest in infrastructure need substantial funding. Capital raising provides the necessary financial resources to fuel growth.

Product Development & Innovation – Research and development require significant investment. Raising capital allows businesses to innovate and stay competitive in their industry.

Debt Management & Restructuring – Companies can raise capital to pay off existing debts, reducing financial strain and improving cash flow management.

Market Opportunities – Businesses may need to act quickly on investment opportunities, acquisitions, or strategic partnerships. Capital raising ensures they have the financial flexibility to seize these prospects.

Strengthening Financial Position – A strong capital base improve a company’s creditworthiness, making it easier to secure future funding and sustain long-term growth.

Methods of Capital Raising

Equity Financing – Selling shares to investors, venture capitalists, or private equity firms in exchange for funding.

Debt Financing – Securing loans, issuing bonds, or obtaining credit lines from financial institutions.

Hybrid Financing – A combination of equity and debt financing, such as convertible bonds or mezzanine financing.

Crowdfunding & Alternative Investments – Engaging retail investors through online platforms to raise funds.

How Challis Capital Supports Capital Raising

Challis Capital specializes in structuring and facilitating capital raising solutions tailored to business needs. With a network of investors and financial institutions, they provide expert guidance on securing funding through optimal strategies.

Enjoy unparalleled access to capital networks Partner with us, and enjoy unparalleled access to debt and equity capital markets, both locally and offshore. As a client, you will have full access to our networks of lenders and sophisticated investors including major banks, investment banks, private equity, hedge funds, family offices, offshore capital and high net worth investors.

Explore more about Property Finance visit here solutions at Challis Capital.

[honeytonedhottie]

restocking and replenishing⋆.ೃ࿔*:･✍🏽

im making this post cuz i think its helpful to keep track of what u normally need and normally buy + how long it lasts u until it needs to be replaced.

i separate mine weekly/monthly depending on what it is that i need, but by creating a sort of system like this u can save a lot of time when u go shopping, plus it'll bring ur organization to the next level.

HOW TO DO IT ;

so get some paper (preferably graphed paper, simply bcuz i find it neater and more aesthetically pleasing) and on one side write weekly and on the other side write monthly.

remember to use scented glitter gel pens and have FUN, make little doodles on the sides and decorate it with stickers when ur done.

on the weekly side write out what u need on a weekly basis. for example one thing on the weekly side of my list is sheet masks cuz i use them 1-2x a week.

use bullet points so that then everything is concise and easy to read, also when u go and buy them make sure to write the prices of those items, then u can use that data if u have other charts or lists ✨

on the monthly side write out what u need on a monthly basis. for example one thing on the monthly side of my list are my vitamins and my chlorophyll droplets.

DESIGNATE A DAY ;

have a designated day when u usually go and get whatever is on ur restock and replenish list. have some fun with it and make it a tradition of sorts even.

ur designated day should preferably be before ur week/month starts so that then u are fully equipped with what u need to feel and perform at ur best

my designated day is USUALLY saturdays and on my restock and replenish days i always have a kombucha and treat myself to something else that i want.

[chichiscloset]

How I Earned a 782 Credit Score at 23

I believe that understanding the ins and outs of managing our finances is essential in our quest for leveling up in life. After all, what good is achieving our dreams if we're not equipped with the knowledge and tools to sustain and grow our success? So how did I do it?

1. Living with parents while in school

While I had the advantage of fewer bills to pay, I still encountered challenges in managing my finances effectively. In the past, I used to blow money like it was nothing, with little to no savings to show for it. However, recognizing the opportunity to change my habits, I embarked on a journey of financial education, starting with reading "Rich Dad Poor Dad" by Robert Kiyosaki. Over the course of 6-12 months, I diligently saved and invested most of my income, laying the groundwork for my financial future. This disciplined approach not only helped me build a healthy relationship with money but also demonstrated to the bank that I was responsible and capable of handling a credit card. It was only after this period of financial growth and learning that I felt confident enough to apply for my first credit card. After being rejected 3 times prior!

2. Become Delusional as F**k

The biggest change in my relationship with money came when I realized that it's not inherently bad; I have a good relationship with money, and money works for me—this is my reality i lived in even during the times I was broke. I remained delusional in my belief that financialsuccess for me was attainable, and remarkably, it worked. This perspective empowered me to view money as a tool for creating wealth rather than something to fear. I learned to use a credit card to work for me, not as a slave to debt, and discovered how to leverage debt to make more money. This shift in mindset helped me overcome financial fears and embrace opportunities for growth.

For more financial literacy context read these posts

Escape Your 9-5 Job If You Don’t Want to Work

“Make Money When your Young, Pretty & Ambitious.”

How to make a credit card work for you

Keep Low Credit Utilization:

Aim to keep your credit card balances low relative to your credit limits. This utilization ratio should ideally be below 30%, with lower percentages being even better. High credit utilization can negatively impact your credit score.

Pay On Time, DONT MISS PAYMENTS

Consistently paying your credit card bills on time is crucial for maintaining a high credit score. Late payments can significantly damage your credit score and stay on your credit report for years.

Keep Old Accounts Open:

The length of your credit history is an essential factor in determining your credit score. Keeping old credit card accounts open, even if you're not actively using them, can help lengthen your credit history and improve your score.

Monitor Your Credit Report:

Reviewing your credit report allows you to identify any errors or inaccuracies that could be negatively impacting your score. You're entitled to a free credit report from each of the major credit bureaus—Equifax, Experian, and TransUnion—once every 12 months.

Avoid Closing Old Accounts

Closing old credit card accounts can shorten your credit history and reduce your overall available credit, both of which can lower your credit score. Unless the account carries high fees or you're unable to manage it responsibly, consider keeping it open.

Conclusion:

Through disciplined financial habits and strategic planning, I achieved and maintained a high credit score. This journey is only the beginning of my commitment to financial responsibility. For more insights on financial literacy, be sure to check out my other posts. Remember, with dedication and planning, anyone can achieve their financial goals

Until we talk again !

Chichi

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