Non-Bank Construction Finance Benefits
So, where the major banks and mainstream lenders will not provide development finance until their pre-sales requirements have been satisfied, most Non-Banks will allow the developer to commence construction without a formal requirement for pre-sales, resulting in significant cost savings with regards to:
In addition to the cost savings described above, starting the project earlier also has the following advantages:
While it is more expensive, it usually provides a significantly greater return to the developer within a shorter time.
Typical Lending Parameters for Non-Bank Construction Finance
Up to $10 Million
without pre-sales
Up to 75% LVR
90% LCR
Interest Rates from 9%
and Line Fees from 3%