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Showing 1 - 12 of 377 posts
Lenders offering development finance ask for pre-sales because each unconditional, arm's-length contract with a proper deposit is evidence that the debt will be repaid. The requirement is usually e...
If your builder goes insolvent, your construction loan does not end. Interest keeps running on what has been drawn, and the lender holds the undrawn funds until a replacement builder is signed and...
An earn-out in business acquisition finance is part of the price that is paid only if the business hits agreed targets after settlement. It cuts what you borrow upfront, because the lender funds a...
A private loan can stop a mortgagee sale only if it repays the whole payout figure (arrears, default interest and enforcement costs as well as the balance) and the property still has enough equity,...
Lenders fund small shops and strata offices, but they treat them more cautiously than larger buildings. Commercial loans on small lots usually come with lower LVRs, closer attention to the tenant a...
Selling 20% of your company to a private investor costs 20% of every future dividend and 20% of the eventual sale price, for as long as they hold the shares - and more once later rounds dilute you....
If you own the company you work in, a home loan lender looks at two sets of numbers: your personal tax returns and the company's financial statements and returns, usually for the last two years. So...
A construction loan deal is assessed twice: once on the borrower and once on the build. Give credit the signed building contract, plans and specifications, permits, quotes for anything outside the...
A development finance lender usually applies two caps at once: a loan-to-value ratio on the project's "as if complete" value (gross realisation, excluding GST) and a loan-to-cost ratio on total dev...
On a construction loan you pay interest only on what has been drawn, so the bill starts small and climbs at each stage. In our illustrative example - a $300,000 land loan plus a $600,000 fixed-pric...
Lenders generally like standard industrial property: simple buildings, broad tenant demand and land that holds value. Commercial property loans on warehouses are sized at the lower of an LVR on the...
A second mortgage for business cash flow is a loan secured behind your existing bank mortgage, usually from a private or non-bank lender, for a business purpose. It can release equity without refin...
