Private Lending for Property Developers
Link Capital assists property developers to find the right solution for their funding requirements to bring their development dreams to life.
Presently, due to the constant changes in the market, it’s becoming almost impossible to start a property development without the need for funding. Banks are where most people start, but with the new stringent requirements set by APRA, developers often find that the traditional lending options are unattainable, with very few passing the application stage.
If an application doesn’t fit the bank’s lending criteria, it doesn’t mean that it’s not a creditworthy deal. At Link Capital, we feel that a set-back from a mainstream lender shouldn’t put a stop to a solid development project. We don’t follow the banks ‘one-size fits all’ lending criteria and are not bound to strict underwriting rules. This allows us the ability to assess funding applications based on individual merits. We work to understand specific loan requirements and current circumstances to offer tailored funding solutions.
We provide a flexible and common sense approach to lending and focus on what’s important to the deal while exercising extreme due diligence with each application. We understand the unique needs of developers, as well as the challenges they may face to obtain capital. Our team has extensive experience in property developments, banking and loan and investment management. We carry out all credit assessments in-house, providing a fast response to loan applications.
The Benefits of Borrowing with Link Capital
- Prompt Service – As we are smaller than the banks, our turnaround times are much faster. You deal directly with the decision-makers, saving time and money, with applications assessed and pre-approved usually within 24-48 hours. Loans often settled within 10 working days.
- Tailored Loans – We are flexible, independent credit specialists. We think outside of the box and we’re not limited to the same strict terms of the major banks. Through our private lending service, we can individually negotiate funding, security and serviceability requirements to secure the capital required.
- Less Complex – When dealing with a private lender, there is minimal paperwork required and obtaining funding is often easier than applying for a loan with a mainstream lender. Our service and lending criteria are less complex, providing a faster credit approval process.
- A Fair Go – If you have a poor credit history or unable to meet the bank’s strict guidelines, we will still give you a fair go. Each loan application is assessed based on its individual merits. We are committed to responsible lending and minimising risk, and we work to understand our clients’ unique circumstances.
- Transparency – Our ethical private lenders ensure transparent communication at every stage, keeping you informed and in control.
- Extensive Experience – Owing to decades of experience, our fund managers hold niche expertise in providing private lending solutions to developers. We are able to truly understand your development funding requirements, assess credit risk and tailor a loan suited to your specific needs.
Link Capital Loan Guidelines
|Loan Basis||Loans available for property developments only|
|Loan Amount||$200,000 minimum. Maximum loan amount is based on individual assessment|
|Loan Interest Rate||The fixed interest rate ranges between 9.5% to 12.5%. This is subject to the borrower’s individual circumstances and the security provided for the loan. The fixed rate loan is to be paid monthly in advance.|
|Eligible Security||A registered first mortgage - dependent on unobjectionable appraisal by an approved valuer assigned by Link Capital.|
|Loan Approval||All loans are evaluated and approved in accordance with Link’s customary appraisal and compliance conditions. Mortgage guarantee insurance is not required.|
|Loan to Valuation Ratio (LVR)||The maximum LVR for residential properties is 65%|
|Early Repayment||The Letter of Offer will stipulate that the borrower has the right to repay the loan early and interest rates are fixed for the term of the loan. Early repayment of the loan will require an additional one month’s interest payment.|
Fast Funding Approval and Flexible Loan Terms
For finance for development purposes, when a traditional lender is unable to assist, contact us today on 08 8312 5960 to find out more about our private lending solution.
Alternatively, you can download our borrower application form.