What is a Private lender?
Private lenders will provide funding against the asset valuation. Should this be for a unit development they will use the Nett Realised Value of the Development project (NRV). In this case the lender will generally disregard the actual borrowers capabilities of servicing the loan, of the development and will take a risk position against the completed value of the asset.
Pre-sales will be significantly lower than a Major Bank’s requirements, which means the developer does not have to discount stock or pay large sale commissions in order to achieve sale targets imposed by most Banks. Bright Capital Finance has access to lenders who are prepared to lend as high as 85% of the end value of a development.