Asset finance is specifically designed for asset acquisitions, which means you can secure the asset itself as collateral. This often results in more favourable terms, quicker approval times and the ability to preserve your working capital. We’ve helped countless business owners purchase the equipment and vehicles they need to keep their venture on the road to success.
However, if you’re a newcomer to property development, lack pre-sales, or require a higher loan-to-value ratio (LVR), obtaining finance may be more challenging, and the interest rates offered could be higher. In such cases, it’s crucial to leverage your strengths and explore alternative approaches, such as equity partnerships.
For instance, a group of shareholders with land and approved plans for an apartment complex could seek funding by offering equity in their company to a private investor. This arrangement provides the necessary funds for construction, and the investor becomes a partner in the project.
At Northcap, we’ve seen major developments funded in a variety of ways. We can help canvas a range of options, explaining the pros and cons of each.