How Funding empowers small-scale developers
Australia’s goal of constructing 1.2 million new homes over the next five years is not solely the domain of major developers. Small-scale developers, who typically build three new homes a year, believe they could play a pivotal role in this mission if they had easier access to financing for projects valued at $5 million or less. These developers possess the means to revitalise urban infill areas and fill the void in medium-density housing, making a significant contribution to the current housing problem we face.
These smaller players, responsible for 16,000 new homes annually, could potentially triple their output and contribute significantly to meeting the nation’s housing needs. However, several challenges hinder their progress. Slow planning processes impacting both large and small developers are a concern. Smaller developers also face difficulties in securing loans and contend with higher financing costs.
One of the most significant obstacles they face is the reluctance of many banks to engage with small-scale projects. As a result, developers often find themselves struggling to obtain the necessary financing. A recent poll revealed that 56% of such developers cite project finance as their most substantial hurdle. Traditional lending institutions often impose strict requirements and suffer from slow turnaround times, severely limiting the potential of small developers to contribute more homes to our communities.
Here at Funding.com.au, we empathise with the challenges faced and understand that time is of the essence for them, and a lack of financing options can hinder their progress. Conventional lenders often fail to accommodate the unique needs and timelines of small-scale developers.
This is precisely where lenders like Funding step in. We are committed to providing flexible, solution-based financial options specifically tailored to empower small developers. Currently, we are witnessing a substantial demand for project loans ranging up to $5 million.
By extending our support to these developers, Funding aims to bridge the gap in medium-density housing addressing what’s often referred to as the “missing middle” in well-established suburban areas. This is where the heart of our housing challenge lies – in creating diverse, affordable housing options that cater to the needs of everyday Australians.
Our approach is simple – we offer efficient and accessible financing solutions that align with the unique requirements of small developers. With quick approvals and minimal hassle, we enable them to unlock the full potential of their projects.
Read the article HERE.
Need development finance? Visit funding.com.au to apply now.
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