Take The Funding You Need To See Your Development Through To Sale
- Avoid private funding with residual stock and take out finance
- Perfect for completed residential developments with unsold units
- Receive funding for up to 12 months to keep sales staff active
- High loan to value rate (LVR) enabling recapitalisation
Thinking about residual stock finance?
Talk to one of our residual stock and take out finance specialists today.Benefits of residual stock and take out finance
The frustration of having unsold units is known to many developers, and even when construction is complete, the owner may still require funding until a certain percentage of the units are sold. Should the developer suddenly find a shortfall in their funds, either due to an existing lender leaving the project or for other reasons, residual stock and take out finance could be the answer.
With residual stock and take out finances you have up to 12 months to sell your remaining units and to use this capital to pay back the loaned amount, plus the interest accrued over that period. However, there are other possibilities at your disposal. Developers may opt to recapitalise, raising the necessary funds to begin another residential construction project and increasing the potential return.
If you are interested in residual stock and take out finance for your development, speak to our team today.
Assessing the level of funding required
Assessments are carried out to understand the value of the residual stock or the total value of the residential units which have not yet been sold. This value will be used to calculate the amount of finance available.
Funding is then provided for up to 12 months, giving you the development owner time to sell the residual stock. However, as the development is already complete, you are in an advantageous position and are in possession of assets of demonstrable value. Gaining residual stock funding helps to ensure that sales are secured and that your project is a success.
Residual stock and take out finance Next steps
When you opt for a residual stock and take out financing, you have up to 12 months to sell your remaining unsold units and use this capital to pay back your outstanding loan, plus the interest accrued over that period. Bear in mind that you still have other options at your disposal. Developers may choose to recapitalize, raising the necessary funds to start another residential construction project, thereby increasing the potential return.
If you are interested in residual stock and take out finance for your development, speak to our team today to decide on the best course of action for you and your project.