Case Study | Equity Line of Credit, Brisbane, QLD

May 23

Ryan took his cash out of his projects to get moving on the next, using an Equity Line of Credit through DFP.


The Situation

At the time Ryan approached us he had one Brisbane apartment project under construction, and another in the final pre-construction stage. Ryan was interested in ways to access some of the equity tied up in those projects, to better progress other opportunities.


The Solution

DFP was able to have an indicative approval for an Equity Line Of Credit for Ryan within just days. This meant that, based on the equity in each project, DFP was able to give Ryan an expected amount of cash he could secure to use as his business required to move on to the next opportunity.

In the property developer's words:

“Essentially it saw a substantial amount of cash released to us that we could use as working capital, to progress on our next projects, or to use as we see is best for our company. It also lowered our ongoing interest expense considerably.

Having this cash in hand has strengthened us further as a property development business because it has allowed us to pursue additional projects. Without the line of credit we would have been very restricted in what other opportunities we could pursue while waiting for our existing projects to complete.

This option is attractive for a property development business because traditional lenders are very reluctant to release cash directly to a borrower. Traditional lenders prefer to release funding in payment of an expense, but not as working capital where the borrower can use the cash freely. As a development business, however, it is critical that we have the cash liquidity to operate and to pursue new opportunities. It is also very inefficient as a business to have equity tied up doing nothing when there are ways we could be using that cash to further grow our company and our project pipeline.

The equity line of credit product is absolutely something I plan to continue to use over time as I lead Carrick Developments towards our goals.”


To find out if an Equity Line of Credit is suitable for you, speak to our experienced finance team today.


Tags


Related Posts

Case Study | 1st Mortgage for cash out for working capital – Sydney NSW

DFP secured refinance with an existing private lender to provide equity and

July 20, 2022
Read More
Case Study | 1st Mortgage for cash out for working capital – Sydney NSW

Compare banks, non-bank and private lenders

How will you fund your next property development project? Whether you’re looking

July 4, 2022
Read More
Compare banks, non-bank and private lenders

Funding your development with your own cash

For property developers with funds tied up in projects, liquidity can often

June 28, 2022
Read More
Funding your development with your own cash