This will be dependent on your projects circumstance, Bright Capital Finance are able to structure debt facilities $1 Million to over $250 Million per transaction
For a full comprehensive review of your project contact one of our experienced consultants.
We specialise in debt placement solutions for Business and Real Estate Developer clients. Bright Capital Finance have direct access to local and International private financiers, institutional fund managers, family offices and HNW individuals.
Are financiers that are not in the main stream of lending like an Major Bank. A large part of their funds come from institutional or SMSF investors. Private Lenders will look at a project for its own merits of succuss, with this it is generally on an asset based lend and not via Tax returns or other means as with traditional banks. Loans will be secured against an asset value, from the start of the project or on completion of the projects value. This is done by registered a valuer instructed by the financier.
This could be for any commercial project and will generally use the Nett Realised Value of the Development project (NRV).
Gross Realisation is the property’s completed end value with GST inclusive (or gross sales).
Is the completed end value of a project with GST component removed.
GST is a Tax that is payable for each sale made and as such can not to included in the overall value of a projects end valuation.
‘Total Development Costs’ are costs associated with the development, as follows but not limited to:
Can be a more expensive source of finance when comparing to a 1st mortgage security due to the higher risk attached to the loan.
Is a mortgage which are subordinate to those of the first mortgage position. Priority in settlement of claims is given to 1st mortgages over other mortgages after that.
Refers to a situation where a loan is of such a large size or complex risk profile, that it is too large for one financier to do alone, so a number of financier band together to each contribute a portion of the total loan required. This may look like; a loan facility of $75 million where 3 financiers each contribute $25 million under terms and conditions that are agreed upon by all parties.
This can be the ratio for “property” or Interest Cover
(rental of proposed security / interest) on the loan being sought or “all sources” (Income from all sources / all commitments).
The DSR sought for “property” and “all sources” is generally a minimum of 1.5 times for full doc transactions
The Bank Bill Swap Bid Rate (BBSY) is a benchmark interest rate typically used by financial institutions or corporations engaging in interest rate swaps and related transactions. BBSY is not an independent benchmark for interest rates. It is a bid rate reference and is usually 5 basis points higher than BBSW
The BBSW is an independent reference rate that’s used for pricing securities. Fixed income investors use BBSW since it’s the benchmark to price floating rate bonds and other securities. The BBSW is an average of the bank bill rates supplied by banks for various maturities.
A loan that is not subject to the National Consumer Credit Protection Act.
The NCCP regulates all consumer credit including housing loans where the borrowers borrow in their individual names,
but not advances to company borrowers. Also all commercial loans are un-coded.
