What is a Private / Non-Conforming Lender?
Private / Non-Conforming Lenders will provide funding against the Gross Realised Value of the Development project (GRV), this is usually after deduction of the GST payable. In this case the lender will largely disregard the actual cost of the development and will take a risk position against the completed value of the asset.
Generally, pre-sales will be significantly lower than the Bank’s requirements, which means the developer does not have to discount stock or pay large sale commissions in order to achieve sale targets imposed by most Banks. Bright Capital Finance has access to lenders who are prepared to lend as high as 85% of the end value of a development.