While securing financing is crucial for developers, the focus shouldn’t solely be on interest rates. At GPS Development Finance, we understand that financing goes beyond the initial loan, and is about ensuring the project has the resources it needs throughout its lifecycle. Which is why when we approve a loan, we focus on securing funds for the initial settlement, progress draws during construction, and for flexibility to extend the facility if the timeline pushes out.
Our ability to offer this finance flexibility to trusted borrowers through a customised finance package sets us apart from the Banks. It’s also a big part of why boutique, relationship-driven lending is so sought after in this climate. Like any risk management process, we always plan ahead, which is why can we confidently offer our flexible funding opportunities and see it as a headline benefit that experienced borrowers will preferably seek out.
We leverage our diversity of funding lines to achieve this, going beyond simply offering the ‘lowest interest rate’ coupled with ‘stretch’ finance which ultimately isn’t tailored to the project’s needs.
Don’t be confused by the terminology either. Many other lenders offer “stretch” or “mezzanine” financing, which is essentially the same language for higher Loan-to-Value Ratios (LVRs) that cost you the same higher rate at the end of the day.
Recently, we’ve encountered borrowers who are seeking higher LVRs for very legitimate reasons. At GPS, we believe in fostering long-term partnerships, not quick wins, and this comes from conversations between the borrower and the lender to come to the most mutually beneficial agreement, driven by the desired outcome of project completion. Most often, successful conversations with these parties involves them balancing ‘skin in the game’ capital with our financing benefits, and an understanding from borrowers that the best finance offer is not just dependent on initial ‘low’ interest rates & fees.
With 30+ years in the industry, our expertise lies in crafting the most cost-effective financing solution. While the specifics of this recipe remain project-dependent (and trade secrets), we can confidently customise a stable solution for your project needs.
Most importantly, and our biggest point of difference, is that the majority of funds for these higher LVR loans at GPS come from, quite literally, internal sources. With GPS’s own finances in the mix, we eliminate the burden of second mortgages with 20%+ interest rates, ultimately driving a more favourable overall cost for the borrower and enabling timely, consistent payouts for all parties involved.
Our retail investors appreciate the ‘security’ feeling this financial balance gives them. For borrowers, it demonstrates that GPS has ‘skin in the game’ alongside you, and signifies our commitment to being part of the solution.
We’re always happy to provide a comprehensive comparison of your financing options. Transparency, flexibility, and competitiveness in terms of overall cost are core principles at GPS. We go a step further, adding value through exceptional service throughout your project journey.
Ready to build? Contact our experienced GPS Development Finance team today for a comparable, no matter where your development is at. We review feasibility, give feedback on other loan proposals, or chat through any other questions you may have.
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