How money moves in this industry
Equity, consultants and approval costs are often committed before construction funding can be drawn. Progress claims, interest and selling costs then fall due before settlements or a completed-stock refinance.
A practical example
A developer secures a site, seeks DA approval and later needs a construction facility matched to a costed build program and realistic exit.
This illustrates a funding need; it is not a lender eligibility claim or a recommendation to borrow.
Common reasons to explore finance
- Site acquisition and holding costs
- Planning and DA work
- Pre-construction costs
- Construction drawdowns
- Completion and residual stock
- Refinance or project exit
Equipment and assets that may be financed
Asset finance depends on the lender's product, the asset, its condition and the proposed term. Examples in this industry include:
- Development land
- Work in progress
- Completed units or commercial space
Questions to prepare for a lender discussion
These are useful preparation questions, not a statement that any particular lender accepts this industry.
- What stage is the project at and what approvals are in place?
- What are the independent valuation, cost-to-complete and contingency?
- How will the facility be repaid or refinanced?
Insurance and business continuity
Finance is one part of a business decision. This industry may also need to consider construction works, public liability, property cover, depending on its activities, contracts and legal obligations. Our business insurance guide explains the concepts and links to official Australian sources.