Parash from ASAP Finance explains about how they are different to banks. Focusing on the end result can ensure that clients without a regular income are able to achieve development goals.
ASAP Finance recently worked with a client, who developed his house into six townhouses. The cash flow jumped from $25k to $150k per annum at the end. This made the entire deal more palatable for a bank.
Banks are usually quite comfortable to rely on future income for one or two properties under construction. However once the projects get bigger the specialist teams at the banks can request a lot more conditions to be fulfilled.
Often banks will get a bit nervous when relying on a lot of rent which will only eventuate at the end. Non Bank lending bodies can be more hands on with a project. This allows them to be more flexible with the funding.
They can cost a bit more than the banks especially for the more complex deals.
