Notable Benefits of Non-Bank Lenders | ASAP Finance

Notable Benefits of Non-Bank Lenders

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ASAP Finance is an example of a reputable non-bank lender with strong business acumen and a history as a responsible lender. Our financial institution is the ideal place for those who want to accelerate development time frames and maximise return on equity. Unlike banks, we break down the barriers preventing your next project from getting off the ground.

Non-bank lenders tend to be privately owned and operated, which means they can adapt their services, fees, and company structure to create highly competitive packages for their clients. At ASAP Finance, we take advantage of this independence, dedicating more time to our clients’ needs and enabling them to mitigate key risk areas, as well as offering flexibility in funding processes and conditions. Since moving to Alert Level 2, ASAP Finance has settled $13 million in construction funding, with a further $25 million in funding approved for new projects.

Let’s dive deeper into the benefits of borrowing from non-bank lenders.

Greater Flexibility

As with the other benefits on this list, highly personalised customer experience and customised loan structures are key characteristics of non-bank funding. Much of this flexibility is due to the degree of regulation imposed on a given lending institution. Deposit-taking institutions (including both mainstream banks and non-bank deposit taking institutions) owe a duty of care to those who deposit funds with them and are heavily regulated by the Reserve bank of New Zealand. In contrast, ASAP Finance is a non-deposit taking institution and is privately owned and operated.  This allows us to decide on the level of risk we wish to accept, what conditions we impose, and the types of projects we wish to fund. In other words, we own our own risk and can adjust our services depending on the individual needs of our clients. We have the freedom to stretch Loan-to-value ratios, fund a higher percentage of total development costs, and present clean funding offers absent the traditional hurdles imposed by banks.

This flexibility also helps non-bank lenders like us to choose a niche vertical and offer a wide range of products suited to that vertical. We’ve found that many of our clients were unable to find loan structures that suited their needs prior to encountering ASAP, and we have our wide product range thanks to our flexibility as an independent institution. In our time working in the property development finance industry, we’ve been able to facilitate many remarkable projects without the interference of a third party.

Loose Credit with Fewer Conditions

Here are some examples of services enabled by greater flexibility and our commitment to making our clients’ journey easier.

Credit Policy

  • Funding up to 90% of total development costs enabling developers to increase return on equity and free up cashflow to inject into other development opportunities.
  • Funding available at up to 75% LVR for construction loans.
  • No pre-sales required enabling clients to accelerate development programmes and ride rising market trends
  • Fixed price contracts are not required; we back the experience of the builder and developer.
  • Valuations are not necessary; we take time to understand our client’s product enabling them to avoid unnecessary costs. 
  • We do not require a Quantity Surveyor or Valuation Progress Reports; we get our boots muddy to ensure progress payments are made on the same day as they are claimed by the developer/builder.

Loan Structure and Management Flexibility

  • Creation of capital and debt solutions unrestricted by bank policy. If it makes commercial sense, there is a good chance we can structure a deal. We offer underwrites and joint ventures in addition to a number of creative funding solutions. The Vulcan, a 38-unit luxury apartment development is the result of our latest joint venture with Plutus Holdings Limited.
  • Equity releases once the project has been de-risked (e.g. once civil works have been completed and the project is out of the ground).
  • Ability to process drawdown requests on the same day. We understand that cashflow matters.

If you choose to move forward with a non-bank lender, you need to be sure of their reputation, capability and ensure that what they are offering is what you need. When it comes to working with ASAP Finance, our long history in property financing speaks to our experience, and our wide range of loans on offer and our bespoke capabilities open the door for everyone looking to fund their next development.

Do you need hassle free development funding?

Speak to the team at ASAP Finance today. We’re the leading non-bank lenders for development finance in New Zealand, and our priority is helping our clients get their projects off the ground. No two non-bank lenders are the same, so when researching your ideal institution, it’s important to understand their strengths and weaknesses. Get in touch with one of our lending managers today to learn more about ours.

Written by Ben Friedlander

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