Understanding construction lending from the ground up

Construction and development finance play a crucial role in the lending needs of self-employed Australians and SMEs. At Assetline Capital, we know that this type of finance is the literal building block to business success and economic growth. 

We’re pleased to offer a full suite of short-term development capital products with flexible terms, specialised development expertise and support, no monthly repayments and no presale required. This blog will help you understand the nuances of construction loans, so you can better serve your self-employed and SME clients as their trusted broker.  

Our Active Lending Approach to Construction Loans 

Master Builders Australia forecasts over a million new builds will be started between July 2024 and June 2029. As a broker, that means now is an opportune time to talk to your clients about construction finance. At Assetline, we’re property-backed loan specialists and we know what makes a project successful. We practice an ‘active lending approach’.  

As your construction and development finance partners, we go further than just providing funds. For construction loans, we actively help borrowers towards successful project completion and sale.  

First, we implement an in-depth due diligence process before loan approval that involves assessing both the developer and the builder. While we’re a non-bank and able to consider more types of projects, we’re conservative and stringent in our credit assessment and will only back projects that will be successful. 

Laura Stanley, Business Development Manager at Assetline Capital explains “all construction loans, no matter how big or small, are subject to the same active lending process.”. “It’s about having an aligned focus with the developer and builder for the benefit of the project, making sure that everyone is doing their part and monitoring that.” 

Once a project is underway, our active lending approach includes site visits on a fortnightly basis. Our construction managers are able to provide a soundboard and advice for any issues that present. This means that as a team, we work through any on-site or background issues and troubleshoot them as a team as we move towards completion. 

Why Choose an Assetline Capital Construction Loan?  

• Loan values from $1 million 

• Specialised expertise and dedicated credit team  

• Build on your terms 

• No monthly repayments 

• No presale required 

• As a non-bank lender, we’re able to consider more types of borrowers  

• We offer a full suite of construction and development capital loans that you can find here 

A Proven Track Record  
 
Assetline has a great track record in building dream properties as the non-bank lender of choice. 

For example, Fred Nasr was trying to achieve a project that was unique in terms of proportions, size and quality when he turned to Assetline for a building loan. Together with Assetline, he realised a $13-million sales price for the apartment development project – a record-price for the area. Looking back on the project, the FND Nominees’ Director believes Assetine’s flexibility and experience was key to the success of it. You can hear more about this project here.  

Or, take Mediam Developments for example. After COVID-19 hit, one of their developments suffered and Director Marcia Karlic’s reached out. Their seven-townhouse project in St. Kilda experienced unforeseen delays, blowing out the financial timeline. “Assetline Capital was flexible, understanding of the situation, and came through for us” recalls Marcia. An Assetline loan enabled Mediam Developments to successfully complete the project and set them up for continued success despite the economic background. Learn more about this project here. 
 
Building Our Future Together. 
 
Laura Stanley notes “The growing need for construction finance is everywhere around us. The Albanese government’s goal to build 1.2 million new homes by 2029 might be ambitious, but the draft legislation has been released to introduce tax incentives for build-to-rent developments. We anticipate a spike in construction loan requests for small to medium enterprises and small businesses, and we’re ready for it.” 

If you’re also ready to get serious about helping your SME and self-employed clients with their construction loan needs, chat to us. We’re here to help you become an expert in this specialised area.