Private Lending for Developers & Builders | Innovate Funding

Why Developers & Builders Choose Innovate Funding

• Speed over red tape – When time is money, we prioritise swift assessments and settlements measured in days, not months.

• Flexible structures – First & second mortgages, bridging, mezzanine-style top-ups, cash-out, and mixed security (residential + commercial).

• Project-aware underwriting – We assess site, scope, feasibility, costs, timeline, and exit—not just a credit score.

• National coverage – Metro and regional deals throughout Australia.

• Competitive pricing – Rates from 8.75% p.a. (first) and 12.95% p.a. (second), calibrated to risk, term and security.

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Funding Solutions for Developers & Builders

1) Site Acquisition Loans

Secure a site quickly (on or off-market), with or without full presales.

• Use cases: DA opportunities, distressed or time-sensitive purchases, option expiry funding

• Typical size: $200K–$20M+

• Security: First/second mortgage over the site and/or additional properties

• Internal link: Development Loans

Scenario: A NSW developer had 10 business days to settle a mixed-use site. We funded $3.1M against the site plus a residential top-up, enabling on-time settlement and DA progression.

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2) Construction Finance (Residential / Commercial)

Fund build costs with staged progress draws tied to quantity surveyor reports or milestone invoices.

• Use cases: Townhouses, duplexes, small-lot subdivisions, boutique apartments, light commercial/industrial

• Structures: First mortgage build finance; or second mortgage top-ups behind an existing facility

• Feature: Interest capitalisation available (project-dependent)

• Internal link: (If you publish) Construction Loans page

Scenario: A QLD builder needed $1.2M mid-build after a bank re-priced their facility. We replaced the lender with a pragmatic drawdown schedule; completion achieved on programme.

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3) Bridging & Residual Stock Finance

Short-term capital between stages or while completed stock sells.

• Use cases: PC achieved but sales delayed, refinance to release cash, complete final works to improve value

• Terms: Typically 3–18 months with flexible exits (sales or refinance)

• Internal link: Bridging Loans

Scenario: A small developer in VIC had 3 completed townhouses with slow sales. We provided $900K residual stock finance to clear trades and marketing; all lots sold within 5 months.

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4) Equity Release / Cash-Out

Unlock equity for pre-construction costs (consultants, QS, planning, holding costs) or to seed the next acquisition.

• Security: Completed property, land with uplift, or cross-collateral on existing assets

• Internal link: Short-Term Business Loans

Scenario: A builder-developer needed $350K to fund project prelims (surveys, design, services). We advanced cash-out against an investment property, enabling a stronger GC/tender and programme start.

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5) Second Mortgage

Fill the gap behind a senior facility when costs shift or valuations move.

• Use cases: Cost overruns, contingency, unplanned variations

• Note: Intercreditor acknowledgement may be required depending on senior lender

• Internal link: Second Mortgages

Scenario: During construction, steel pricing spiked. We delivered a $600K second mortgage behind the primary lender to keep trades on site and schedule intact.

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Typical Loan Parameters

• Loan amounts: $200K – $10M+

• Interest Rates: From 8.75% p.a. (first) and 12.95% p.a. (second)

• LVRs:

  • Up to 60% on standalone commercial security

  • Up to 75% blended across multiple securities (project-dependent)

• Term: 3–12 months typical (extensions considered)

• Security: Residential, commercial, mixed-use; cross-collateral acceptable

• Docs: Low-doc / no-doc pathways available (accountant’s letter, QS/costs, plans, BA/DA status)

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Developer / Builder Lending Criteria (Guidelines)

We look for clear feasibility and viable exit rather than perfect paperwork. Typical items include:

• Entity details (ABN/ACN), project team, track record (if applicable)

• Planning status (DA/BA), scope of works, program/timeline

• Detailed costs (builder contract, QS, contingencies)

• Security details (title search, valuation if available)

• Presales or sales strategy (if applicable)

• Exit (sales, refinance, take-out letter where relevant)

 

If financials are limited, we can accept:

• Accountant’s letter confirming trading and loan purpose

• Bank statements and supporting invoices/contracts

• Evidence of marketing/sales pipeline for exit

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Our Process (Built for Speed)

1. Scenario & Numbers – Send high-level details (site, costs, timeline, exit).

2. Indicative Terms – Often inside 24–48 hours.

3. Diligence & Valuation/QS – Proportionate to deal size/complexity.

4. Docs & Settlement – We coordinate with your solicitor/broker to settle fast.

5. Drawdowns & Support – Responsive progress payments and active communication to keep works moving.

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Real-World Scenarios

• Time-Critical Acquisition: Off-market industrial parcel needed 12-day settlement. We funded $2.2M against site + residential cross-collateral, securing the deal and uplift.

• Bank Exit / Refinance: Lender withdrew at 70% completion due to covenant changes. We refinanced $4.5M, aligned QS milestones, and finished to PC.

• Residual Stock Strategy: Completed mixed-use building held for lease-up. We advanced $1.6M to fit out two retail tenancies and improve valuation for a bank take-out.

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Internal Links (Keep Users in the Cluster)

• Private Lending for Business Owners

• Private Lending for Commercial Property Owners

• Private Lending for Savvy Property Owners

• Development Loans

• Second Mortgages

• Bridging Loans

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FAQs – Developers & Builders

Do you require presales?
Not always. We assess each project on its merits (site, costs, exit). Strong feasibility and exit can offset limited presales.

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How are progress draws handled?
Typically via QS or milestone-based claims with quick turnarounds so trades stay on site.

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Can you fund GST and soft costs?
Case-by-case. We can consider interest capitalisation, GST bridges and soft costs where the exit is clear.

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Do you fund DA-uplift strategies?
Yes. We can provide site acquisition and holding finance while DA is pursued, with an exit via sale or construction funding.

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What if financials are limited?
Low-doc pathways are available. We may accept an accountant’s letter, bank statements and supporting invoices/contracts.

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Get Your Project Funded

Whether you’re acquiring land, bridging a gap, or finishing a build, Innovate Funding delivers the private capital and responsiveness that development demands.

Call 02 8919 3639 or Apply Online to discuss your scenario.