INFORMATION
Development Finance
Development finance provides essential funding for property developers embarking on residential, commercial, or mixed-use projects across Australia. At Brilliance Finance Group, we understand the complexities and unique requirements that development projects present, offering tailored finance solutions that support every stage of the journey, from land acquisition through to construction and eventual sale or leasing.
What is Development Finance?
Development finance is a specialised funding solution designed specifically for real estate projects that involve construction or redevelopment. Unlike traditional loans, development finance operates through staged drawdowns, aligning with the project’s phases—purchase, planning, construction, and completion.
This method minimises upfront costs and helps developers manage cash flow effectively by only paying interest on the drawn funds, which is especially advantageous for large-scale developments
KEY FEATURES OF DEVELPOMENT FINANCE
- Flexible Loan Terms and Staged Drawdowns: Funding is released progressively in line with the development’s milestones, such as completion of land purchase, planning approvals, and each construction phase. This staged financing structure reduces holding costs and maximises capital efficiency
- Tailored Loan-to-Value Ratios (LVRs): Development finance often offers high LVRs, allowing developers to leverage the value of their land or project and reducing upfront cash requirements. This is especially beneficial for high-value projects where maintaining liquidity is crucial
- Short to Medium Term Solutions: Development loans are generally structured as short- to medium-term solutions, spanning 6-36 months. This timeframe provides flexibility to complete the project and exit through sale or refinancing, depending on the developer’s strategy
- Interest-Only Payments: Many development loans come with interest-only repayment options during the construction period, alleviating immediate cash flow demands and allowing developers to reinvest capital into the project
Types of Development Finance We Offer
- Land Acquisition Loans: These loans are ideal for developers looking to secure prime land for future development. Funding can cover a significant portion of the purchase price, making it easier to acquire valuable sites Land Acquisition Loans:
- Construction Finance: Tailored for active build stages, construction finance covers the physical building costs from foundation to completion, ensuring that every aspect of the development progresses smoothly Construction Finance
- Mezzanine Finance: For developers who require additional funding on top of senior debt, mezzanine finance offers a layer of funding to bridge any financial gaps, particularly useful for large projects with high capital requirements Mezzanine Finane
- Bridge Finance: Bridging loans provide interim funding for developers needing immediate capital while awaiting the release of other funds or to cover a gap between stages, often a strategic tool in fast-moving markets Bridging Finance
With extensive industry knowledge and strong lender relationships, Brilliance Finance Group is dedicated to supporting developers with flexible, competitive financing options that adapt to each project’s demands. We partner with both major banks and non-bank lenders, giving our clients a wide array of options and access to competitive terms.
- Comprehensive Project Support: Our team assists at every stage, from initial assessment to securing approvals and ensuring smooth drawdown processes throughout the project’s lifecycle.
- Competitive Rates and Terms: We negotiate favorable terms to help maximize your project’s profitability and ensure a streamlined funding experience.
- Expert Guidance and Strategic Advice: From feasibility assessments to refinancing, our team provides insights to enhance project value and ensure financial alignment with project timelines and objectives.
Start Your Development Journey with Brilliance Finance Group
Whether you’re an experienced developer or new to the industry, Brilliance Finance Group can provide the development finance solutions you need to bring your project to life. Contact us today to discuss how we can help support every phase of your development with expertise, flexibility, and financial strength.
