In Australia’s continually evolving property development industry, small and mid-size developers are finding it increasingly difficult to secure bank funding for their projects.
Development Finance Partners (DFP) co-founder, Matthew Royal, reports a daily influx of 10-15 inquiries from developers seeking alternative financing solutions. DFP’s recent development finance survey uncovered that 50% of respondents sought non-bank lenders for construction finance, as they aim to avoid the stringent pre-sales conditions imposed by traditional banks.
Market conditions have fuelled frustration among developers who are turning to non-bank lenders to expedite their projects and bypass the bureaucratic hurdles of traditional banks.