Funding helping complete construction during rising building costs

If you’ve started building or found your dream home, and need approval fast, or when banks can’t lend you money as quickly as you need it, it can be a very stressful time.

CoreLogic’s Cordell Construction Cost Index (CCCI) found prices increased by 11.9% over 12 months to December 2022 which was the largest annual increase on record. Despite this, December’s quarterly growth rate of 1.9% was less than half the Q3 figure of 4.7%.

Funding has seen a significant increase in demand for bridging solutions in the past twelve months, including flexible construction funding, driven by issues with fixed-price contracts, rising cost of materials, and a skills shortage. We’ve been able to come to the rescue for several brokers and their clients with construction loan solutions.

“We’ve seen an increasing number of building clients needing fast funding to complete their construction. We are flexible on construction and work with Brokers on solutions, where banks can be inflexible,” Funding’s Head of Credit, Steven Galdona said.

If you are developing a project and plan to use funds from your business to finance the work, it can be frustrating when those funds don’t come through.

A recent survey conducted by SME lender ScotPac found 100% of Australian SME’s had been hit by supply chain disruptions and as a result, two in three were increasing their prices.

“We are consistently approving deals on the same day and settling loans within 3 days, so we have been able to come to the rescue when a client with an urgent settlement date or an incomplete construction job with our loans secured by property for any purpose,” Mr. Galdona continued.

With a spike in refinances and clients seeking new properties and situations, creating the need for short-term funding, and the need to consider new lenders and products to be ready when bridging finance is required.

Get in contact today on 1300 44 33 19

Visit Funding.com.au

Borrowers