The benefits of using an experienced development finance broker can go far beyond simply sourcing a good finance deal for a client.
Finance Advocates Australia (www.financeadvocates.com.au) recently assisted an existing client who’s project started to encounter major problems when they discovered their builder was in some financial trouble and that a number of the tradesman on site were not paid as were a number of suppliers.
As a result of this, the build time was delayed beyond the original contract term and then in turn, the loan facility reached its expiry period when the project was still only about 80% complete. The next issue that resulted was having enough funds left for the project under the banks “cost to complete” rules considering the extra interest required as well.
There is little doubt that had this client been dealing directly with a Bank from the start, that most likely the project would have been placed into a Mortgagee in Possession position.
Finance Advocates Australia with its 29 years of experience in banking and finance and specialising in construction and development project finance was able to negotiate with the lender, firstly an extension of the existing loan facility and at the same time a structure that allowed the developer to continue on with the project and get the tradesman and suppliers paid up to date. The project is now nearing its completion without any further delays.
If you’re a property developer looking for an experienced development finance broker call Renato at Finance Advocates Australia on 1300 780 196 for an obligation free chat.
