Refinance or borrow against your unsold development stock
DFP through its newly acquired sister company First in Finance is pleased to announce a Residual Stock loan facility, for its developer clients.
This product is specifically targeted and designed for Developers who do not wish to dispose of all the stock that they undertake through their developments.
With the market becoming highly competitive, driven largely by foreign investment and domestic developers taking advantage of cheap money, developers and builders alike need to have a good alternative to standard bank funding options
Some of the smaller and more nimble financiers have identified an opportunity in the lending to such clients without taking unnecessary risk. The parameters surrounding these products make them flexible, but the extended LVR is within mainstream banking limits making it still an option for possible securitisation.
Features of the Residual Stock Loan Facility:
- LVR to 65% of lenders valuation*
- Term – 1-3 years interest only or interest capped
- Rates – 6.75% – 7.95% (Range based on LVR)
- Min. Loan Amount – $100k
- Max. Loan Amount – $2m
Benefits to the developer:
- Loan can be purely cash out to fund other projects
- No minimum ABN requirements or financial statements required
- Stock can be held and the facility rolled to ensure the assets are sold in the right market
- Tax debts can be paid through the lending to manage ATO requirements
- Loan must be at least 51% for business use
- Company borrower preferred (SPV is suitable)
- Properties in Metro and large regional cities preferred
Fees will vary between lenders but the following will apply:
- Application fee: 1.5%- 2.5%
- Legal Fees: From $695
- Valuation Fee: Cost on application
For more information contact Ben Flood at firstname.lastname@example.org or on 0419 517 o24
Could your next project benefit from some expert development finance? Get in touch.
For expert advice:
Level 3, 31 Alfred St
Sydney NSW 2000
P / 02 8916 6246
Level 30/35 Collins Street,
Melbourne VIC 3000
P/ 03 8692 0082
Level 18, 175 Eagle Street
Brisbane QLD 4001
P / 07 3041 4136
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