At ASAP Finance, New Zealand’s leading non-bank property development lender, we’re reshaping the way developers access capital. With banks retreating from development lending, there’s an urgent need for faster, more flexible funding that aligns with the realities of modern construction. Developers today don’t need outdated hurdles, they need certainty, speed, and practical support.
Why pre-sales no longer make sense
Traditionally, pre-sales were used by lenders as a safeguard to mitigate risk. But in today’s environment, they’ve become a bottleneck—stalling viable developments not because the numbers don’t work, but because the pre-sale burden disrupts momentum and jeopardises funding.
Here’s how pre-sale hurdles can derail your project:
- Costly delays: Mainstream lenders often require 60% or more of a project’s stock to be pre-sold before releasing any funds. That leaves developers in limbo, waiting months to secure pre-sales before breaking ground, while holding costs rise. Furthermore there is the risk of main contractors potentially walking away or extending programs as a result of commitments made elsewhere.
- Margin erosion: Chasing pre-sale targets often means discounting to drive early contracts. In effect, you’re sacrificing profit to meet a lender’s comfort level – undermining the commercial return before the first slab is poured.
- Market timing risk: Pre-selling locks you into today’s prices, not tomorrows. In a rising market, that means lost upside. In a falling one, buyers may stall or renegotiate at settlement, putting your repayment plan and the entire capital stack at risk.
The ASAP Finance approach: No pre-sale barriers
At ASAP Finance, we take a different approach. As a specialist lender focused solely on property development, our lending criteria is targeted towards our clients needs. We assess:
- The strength of your equity contribution
- Your track record and delivery capability
- The robustness of your construction contracts and cost controls
- Sensible exit strategies – beyond just selling off-the-plan
This allows us to fund well-structured developments without pre-sale requirements – so you can move forward faster and finish stronger.
We know that the true risk in development lies in execution, not in how many contracts you’ve signed at the concept stage. And with a growing range of alternative lenders in New Zealand, credible exit strategies now go well beyond traditional bank refinancing. For example: a development of 8 homes with just 2 early sales may be enough to reduce loan exposure, paving the way for a staged sell-down while transitioning to longer-term finance. The refinance market is well and truly alive.
No pre-sales ≠ no sales strategy
To be clear: just because at ASAP Finance we don’t require pre-sales, doesn’t mean you should avoid them altogether. Instead:
- Plan ahead
- Understand your product and market
- Build a sales strategy that supports (not delays) your delivery timeline
In a slow market, having some sales secured before completion is essential for debt reduction on a fully drawn development loan facility. This requires a strategic sales and marketing plan running in parallel with construction – not left until the end.
Timing sales depends on the product. High-end homes, for instance, often sell better once completed and staged. But pursuing a “no pre-sales” strategy adds risk, and should only be considered by experienced developers who understand local demand patterns and buyer behaviour.
As one seasoned developer recently told us, “Sales solve all problems.” While this is not true in absolute terms, there is strong substance the message. Even if a project faces cost overruns or delays, strong sales cover provides reassurance to lenders and buffers your funding position.
Rethink the pre-sale dependency
Pre-sales are a bank requirement – not a development necessity. In fact, in some internationally markets, main banks commonly fund property developments without pre-sales. However dismissing sales entirely is a mistake as discussed. “No pre-sales” funding is not a free pass to ignore your sales pipeline. If your project is viable, you deserve a lender who gets what matters most: execution, experience, and speed.
Why developers choose ASAP Finance
ASAP Finance is New Zealand’s trusted non-bank lender for residential, commercial, and subdivision developments. We fund projects from $500,000 to $50,000,000 with:
- No pre-sales required
- No valuations
- No QS appointment
If your project is stuck waiting on pre-sales, it’s time to talk to a lender that funds differently.
Property development finance. Done fast. Done right.