Finance for developersfunded on the feasibility, not pre-sales alone

The situation

A developer bringing a project from site to completed stock is usually managing several overlapping problems at once: a settlement date that won't move, a feasibility that has to work on paper before a lender will look at it, and a capital stack that rarely lines up neatly between senior debt, equity and the actual cost of building. The requirement is not simply "a loan" — it is construction finance to fund the build, land bank finance to hold a site through approvals, bridging finance to move between one position and the next, or gap funding to cover the difference between what a senior lender will advance and what the project actually costs. Developers reach for this kind of finance when the project's timeline is tighter than a bank's assessment process, when pre-sales are limited, or when a facility needs to be structured around a specific stage of the project rather than the whole thing at once.

Why the first answer is often no

Banks generally want a strong pre-sale position, full financial disclosure and an established developer track record before committing to a construction facility, and they move at a correspondingly deliberate pace given the size and complexity of these loans. A project without enough pre-sales, a first-time developer, or a feasibility that doesn't fit a bank's standard template will often meet a slow no rather than a fast yes — not because the project is unsound, but because it doesn't match the bank's risk settings for this category. Banks remain part of the lender panel throughout, and for well pre-sold, established-developer projects a bank is often still the right and most competitively priced fit. The gap this leaves is for projects that are genuinely fundable but need a lender prepared to assess the feasibility, the builder and the exit on their own merits rather than against a standard checklist.

How it gets funded

Construction finance is the core facility for the build itself, progress-drawn against milestones and secured by a first mortgage over the site and a general security agreement. Where a project needs to hold land through approvals before building starts, a land bank loan bridges that period, often refinanced into construction finance once the project is ready to build. Where senior debt alone doesn't cover the full capital stack, mezzanine and preferred equity can sit behind it to close the gap, priced for the additional risk and typically repaid from project proceeds. A bridging loan suits a developer moving between two positions — settling on a new site before an existing one sells, for instance — while private first mortgages can fund a purchase or refinance outside the construction phase itself. Once a project settles, settlement and GST funding covers the short-term cash requirement that a GST liability or settlement timing can create.

Security is generally a first mortgage over the site, a general security agreement over the development entity, and pre-sale contracts where they exist. Banks weigh pre-sales and developer track record most heavily; private lenders and specialist funds are typically more flexible on both, assessing the feasibility, the builder and the exit directly, and can move faster once a complete package is submitted. The exit — how the facility is repaid, whether through sale, lease-up or refinance — is scrutinised as closely as the security itself, regardless of which type of lender is the best fit.

What to have ready

A complete feasibility (total development cost, as-complete valuation, and margin), the build contract and builder details, council approvals, a quantity surveyor's report, pre-sale contracts if any exist, entity and director documents, and a clear statement of the exit. Having these ready before the first lender conversation is the single biggest factor in how quickly terms can be put on the table.

Working with us

The first call is a scoping conversation: the project, the build stage, the pre-sale position and the timeframe, so we can give an early, honest read on which lenders are likely to be the right fit before anything is submitted. From there we run the feasibility to the banks, private lenders and specialist funds whose appetite matches the project's size, location and risk profile, rather than shopping it broadly and hoping something sticks.

We report back with actual terms, not indicative ranges dressed up as offers, and we stay involved through documentation and drawdown rather than handing the file off once terms are agreed. Where a project has come to us through an introducer — a lawyer, accountant or buyers agent — that relationship stays with the introducer; our role is arranging the finance, not replacing the advice you're already getting elsewhere.