The two greatest benefits of funding your project through a non-bank lender
As interest rates increase and credit conditions tighten, it’s harder than ever to raise funds for property development through traditional bank channels.
On the other hand, non-bank lenders have a number of competitive advantages compared to most major banks - they’re typically faster and more flexible, offering outside-of-the-box, tailored funding solutions. Given this, let’s take a closer look at the key benefits that non-bank lenders can offer when funding property transactions.
Fast turnarounds
Non-bank lenders are usually privately owned and operated by the key decision makers. These decision makers can personally craft highly competitive funding solutions for their clients without wasting time by consulting and seeking the approval of other internal departments.
That means, rather than waiting up to four weeks you could have an approved finance proposal within 48 hours of sending all supporting information - and progress drawdowns processed on the same day.
In property development time introduces increased cost and market risk. The longer you wait, the more likely it is that market conditions will change and the more you’ll have to pay to hold your site without any return. The time savings offered by non-bank lenders reduce those risks and costs so you can move forward as quickly as possible.
Flexible conditions
The strict conditions that banks impose can make some projects difficult to get off the ground. However, non-bank lenders typically have more flexible conditions which can help accelerate your plans:
Non-bank lenders often offer finance to developers with low or no pre-sales. This enables their clients to accelerate the development programme and minimise market exposure.
Most non-bank lenders will fund a greater percentage of total development costs enabling developers to increase their return on equity and free up cash flow for other opportunities.
Non-bank lenders are largely supportive of self-managed developer builders and clients with limited track records.
Non-bank lenders like Fortis Capital can structure transactions with fewer and more flexible conditions. This means you can spend more time getting on with your next venture and less time satisfying onerous conditions.
Reputation
Chances are you’re familiar with all of New Zealand’s major banks but you might not know most of the non-banks. That’s why it’s vital that you do your research and partner with an experienced non-bank lender with a strong reputation in the industry.
Here at Fortis Capital our team are experienced property people with a proven track record of financing and developing projects of all sizes across New Zealand. We understand what it takes to make your project a reality.
Ready to start your property development or investment project? Get in touch with Fortis Capital for fast, flexible funding from experienced property finance experts.