The importance of continuity in our workflow is something GPS shares with builders.
Not just builders, but all industry professionals; architects, town planners, quantity surveyors, project managers and marketers. We all understand why it is more profitable to have continuity of work, rather than being solely focused on volume.
Without continuity, cashflows suffer.
Don’t just be thankful for what you get
A common gripe of builders is being told to be thankful for the work performed in pricing up a project. They are then told that they will be informed once preconstruction sales have been achieved and finance is in place.
They can be waiting quite some time before the job starts.
My reply is to ask the builder to refer the developer to GPS. We fund without presales and can work with builders to have the funding available for when it suits their continuity of business. GPS can turn around progress draw payments within 48 hours of receiving the payment authority.
This also works well for the developer. They achieve significant savings in marketing and holding costs and need to put in less capital (due to the higher LVR’s and LCR’s offered by GPS). They may also achieve a sharper price from the builder if the project suits their continuity of work. All factors that increase their profitability.
No delays for stages
Another gripe builders have is with stage developments. Builders like to roll through the entire project without having to stop work at the end of each stage waiting for sales.
Again, I request that the builder refers the developer to GPS. GPS can lend on a rolling cashflow, which allows each stage to roll into the next without delays.
We all win
This is a good result for all. Both the builder and GPS achieve continuity of work, and the developer achieves significant savings in holding, build and marketing costs.
Banks down-play lenders like GPS. They imply that we are “second class” and that the developer’s reputation will be sullied if they deal with the likes of us.
The majority of GPS work is from repeat borrowers who understand the real cost of construction finance. They appreciate the service and flexibility GPS offers.
Richard Woodhead – Managing Director
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