Case Study: when a bank changed its policy on a developer

Finance Advocates Australia (www.financeadvocates.com.au) recently settled a transaction for a client in Richmond who was frustrated with his Banks sudden change of lending policy just as he was ready to start construction.
The client had plans in place to build two luxury residences in one of the better parts of Richmond and was all set to roll into the construction phase with his bank that originally funded the purchase of the property and that had assured him that they would support him for the construction.
As that time approached he was advised by his bank that their lending policies had changed and he was required to put more cash or equity in the transaction, something which he wasn’t in a position to do.
The change in the banks position basically stalled the client’s ability to move forward for several months.
The client then approached Finance Advocates Australia and with its 29 years of experience was able to structure a superior development finance package with a second tier bank that saw him obtain an 82% of hard cost loan at a rate of 5.31% without the requirement for him to contribute any further funds.
This saw the project pretty much commence immediately without further delay as we were able to arrange a refinance of the existing lenders land loan and funds he needed for construction.
If you’re a developer looking for alternative prompt development funding options call Renato at Finance Advocates Australia on 1300 780 196.