Bridging Loans NZ – Structured for Your Needs | ASAP Finance

Bridging Finance Structured for Your Needs

ASAP Finance offers a wide variety of bridging loan solutions for borrowers all over New Zealand. Cashflow timing gaps are natural occurrences in business; bridging these gaps can be the difference between securing your next big project or sitting on the side-lines.

Offering both open and closed bridging solutions, ASAP Finance gives you the confidence go unconditional on your next property as you wait to realise profits from a prior project or venture. Our short-term bridging loans are tailored to your individual needs, offering quick and hassle-free finance during the bridging period at competitive interest rates to suit the loan term.

Whether you are an investor looking to up-scale your investment portfolio or a property developer looking to secure your next big project, our team will find a solution that will suit your funding needs.

Bridge The Gap With ASAP Finance

Key Advantages of ASAP’s Bridging Finance

  • Bridging loans are typically capitalised interest loans and are intended to bridge a gap where increased debt makes servicing strenuous. We take advantage of our independence to structure bespoke bridging loans specific to the needs of our clients.
  • We can assume security over one or both properties, with lending available against both the property being sold and the property being purchased.
  • ASAP Finance has the ability and scale to lend $50,000,000 on a single transaction.
  • Evergreen funding lines provided by ASB & BNZ are supported by private equity ensuring funding is always available for our clients.
  • Our loans are settled quickly, often within 48 hours, so borrowers don’t need to be concerned about losing their chosen property while waiting for an approval.
  • Take advantage of our term specific rates, with lower interest rates available for short term loans.
  • We work with your financial adviser or mortgage broker to coordinate a sale and purchase timeline.

We offer two types of bridging loans:

Closed: A closed bridge loan is one where you, as the developer or investor, have a known exit strategy in place. In this instance, you would (a) know how you will pay back the loan and (b) have a specific date that this will occur.
For example, you may require funds to settle on the purchase of a new property before the sale of an existing property has been completed. In this scenario, you would have a binding sale and purchase agreement for your existing property. This gives both you and the lender certainty as to what funds will be available and when. Sale proceeds can then be applied to reduce debt against your new purchase.
Exit strategies in closed bridge scenarios are clearly defined, giving it a lower risk profile than that of open bridge loans.

Open: An open bridge loan is one where there is no clear exit strategy in place. For example, you are required to settle on a newly acquired property prior to procuring a binding sale and purchase agreement for your existing property. As you are yet to obtain a sale and purchase agreement for your existing property, there is no fixed date or guaranteed income, thus making it a riskier proposition for both you and the lender.
ASAP finance provides short-term loans for a wide variety of open and closed bridging scenarios, enabling you to capitalise on the next opportunity that comes your way!

Our Bridging Loans Assessment

At times when property investors or developers need to settle a new property, bridging finance can be like a lifeline. The last thing you need is to be on tenterhooks for fear the deal will fall over. In the fast-paced world of property the saying time kills all deals has never been truer.
Our lending managers are experienced investors & developers, so we understand the need for a quick, hassle-free approach. Our loan assessment process is short and sweet.

What we review:

  • Details of the security
  • Your current loan balances
  • Your proposed equity contribution
  • Sale and purchase agreements
  • Details of your proposed exit strategy
  • For more information on loan terms and funds, read our lending criteria.

    ASAP Funding Process

    1. Submit a funding application. We work quickly, assessing your project and providing indicative terms in as little as 24 hours.

    2. Issuing of formal letter of offer. Following your acceptance of the indicative terms, we issue a letter of offer detailing:  

    • Our fees (including a legal quote for your solicitor)
    • Your interest rates
    • Loan terms
    • Any terms and conditions (we try to keep these as minimal as possible)
      Unlike other lenders, our letters of offer are fully credit approved; we stand by our commitment to fund your project.

    3. Creation of loan documents.Once you have accepted the offer and paid the loan deposit, we work with your mortgage broker to arrange complete loan documents.

    If you are working with a mortgage broker, we will pay brokerage direct, typically equivalent to 1% of the loan amount on drawdown. Our establishment fee and legal costs are payable by you. These are stipulated upfront.

    What Our Clients Have to Say

    Below is a selection of completed loans

    Eton Estate, Hamilton

    “Other finance companies were scurrying away. The banks were onerous in terms and conditions. ASAP Finance backed us, and that first loan set up a relationship that has lasted more than a decade.”

    - Tristan Jones

    It was the middle of the global financial crisis and finance companies were going down left right and centre when Tristan Jones, of Northview Capital, was in the market to finance what would become one of Hamilton’s premier sub-divisions.

    “ASAP Finance were active in a market where everybody else was pulling out,” says Jones. “We met and ASAP Finance understood our business and our project straight away

    “Other finance companies were scurrying away. The banks were onerous in terms and conditions. ASAP Finance backed us, and that first loan set up a relationship that has lasted more than a decade.”

    The result of that first project was the prestigious Eton Estate in Hamilton.

    Jones says that that typically some developers will shift finance to the banks once pre-sales conditions are met – although every project is different depending on size, location, scale, and whether it is consented or not.

    “We often won’t go to the bank for funding even when we have the choice to do so, because the responsive service that we get from ASAP Finance offsets the additional cost. We don’t have to put up with the onerous demands around valuations and quantity surveys that the banks make.

    “ASAP Finance makes a real effort to understand all the moving parts of a project and that when you are developing properties the reality is that there can be lots of draw-downs and cost over-runs. They really understand the detail and adapt accordingly. Most other financiers however, will avoid needing to understand the intricacies of what a project is all about.”

    Jones says that there are occasions when ASAP Finance will fund a development right to the end.

    “ASAP Finance has completed between 20 and 30 loans with our business (each loan could be a stage of a project), including funding through to stages six and seven at Eton Estate.

    “We’re developers. We want to get on and do things; to build homes for Kiwis like Eton Estate. Finding a funding partner like ASAP Finance has been a real advantage because they understand our business; they are responsive in they will adapt funding to suit as the market moves and evolves.”

    For example, says Jones, say a developer has a three stage sub-division and gets $1.8 million in funding approved from a mainstream bank for the first stage. All good. But in week three, the developer realises that they have sold 18 out of 20 lots and the market is clear that one stage is not enough to meet demand. Further, the business case for a second stage is compelling.

    “If you go back to the bank for additional funding, they will view you as changing the loan and therefore unable to manage a project – even though success and economics is behind the decision.

    “ASAP Finance, however, will see the business case. They will see that you have met the first milestone and that it makes business sense to build over a wider footprint to take advantage of the economies of scale. They will work with you so that everybody wins,” Jones says.

    “That’s why we choose to work with ASAP Finance.”

    Flemington Sub-division, Lincoln

    “With a big project it’s impossible to get a bank on board, and I’m not sure a bank is the right partner anyway. Common sense is not common these days, but that’s what ASAP Finance brings to the projects we work on”

    - Shane Kennedy

    Flemington Sub-division, Lincoln

    “With a big project it’s impossible to get a bank on board, and I’m not sure a bank is the right partner anyway. Common sense is not common these days, but that’s what ASAP Finance brings to the projects we work on”

    - Shane Kennedy

    Developer praises ASAP Finance’s common sense business approach

    Referred by a couple of different people to ASAP Finance just before the start of the successful 58ha Flemington sub-division in Lincoln, developer Shane Kennedy says the common theme of his decade-long experience with ASAP Finance is a common-sense approach to financing a project.

    “With a big project like Flemington, it’s impossible to get a bank on board, and I’m not sure a bank is the right partner anyway. Common sense is not common these days, but that’s what ASAP Finance brings to the projects we work on,” Kennedy says.

    “By common sense I mean they assess the risk in the project from our point of view, and their point of view. They understand that we, as the developers, have no intention of going into a project where there is too much risk. Once we met their requirements, the draw down process was simple.”

    Working with ASAP Finance now for more than ten years, Kennedy says it’s a pleasure knowing he deals with the same person, rather than somebody different every time.

    “For a big project it is important, but difficult, to build a personal relationship with your financier and to maintain it, but that’s exactly how it has worked.”

    ASAP Finance was there for Kennedy through the first three stages of the 570 lot Flemington sub-division in Lincoln, until the project was up and on its feet. Since then there have been other projects in Auckland and Christchurch, including the latest, Verdeco Park, which is located near Lincoln in the Selwyn District.

    “It is difficult to get building projects off the ground and bordering on impossible with the banks. Even from the point of view of having to supply more security than is reasonable and 100% pre-sales, the banks only then lend up to 70% of the value – to me that is an over cautious approach that stops a lot of people from progressing with developments like we're doing.

    ASAP Finance aren't high risk lenders either, but the structure of their lending makes it achievable. Our business is well set-up in the market down here, but that doesn’t count with the bank. However, as a result of our strong relationship with ASAP Finance we can pick up the phone and talk about it. They take a common sense, business approach to a deal that is good for everybody,” Kennedy says.

    If there are issues, they can easily be worked through without putting anybody at risk.

    “I’m still talking to the same person at ASAP Finance that I was ten years ago, and that is a comfort for me.

    “We haven't had any hiccups that caused problems, but the simplicity of the funding and how they operate mitigates risk areas. Both parties work on a common-sense policy which includes good strong relationships for ten years – I wouldn’t do my projects through anybody else.”

    We are proud of work our clients have completed.

    Below is a selection of completed loans

    • Construction Loan Terrace-townhouse Development

      Construction of 29 terraced townhouses, and subsequent subdivision located in Whenuapai, Auckland. The loan facility provided for capitalised interest and fees, and included a revolving GST facility. Funding was provided without any pre-sales or a QS appointed to the project.

      Loan: $12,950,000
      End Value: $19,300,000
      Loan-to-value: 67%
      Loan-to-cost: 81%
      Term: 12 months

    • Construction Loan Single-house Build

      A section purchase and construction of a single house within a greenfield subdivision in Flat Bush, Auckland. The construction loan included capitalised interest and fees with no repayments required during the build. Funding was approved without a fixed price contract in place and no valuation drawdown reports were required – instead, drawdowns were provided based on agreed milestones.

      Loan: $840,000
      End Value: $1,200,000
      Loan-to-value: 70%
      Loan-to-cost: 82%
      Term: 9 months

    • Construction Loan Master-planned Subdivision

      This construction loan was structured into two parts: (i) the purchase of an unconsented block of land in Lincoln, Christchurch, and (ii) construction and associated earthworks for the initial stages of the 120-lot land subdivision. The construction loan included capitalised interest and fees, and a revolving GST facility. 50% presales cover was achieved prior to drawdown from the construction facility.

      Loan: $19,000,000
      End Value: $29,230,000
      Loan-to-value: 65%
      Loan-to-cost: 80%
      Term: 12 months + extension

    • Residential Property Loan Purchase

      A residential investment property located in Mt Roskill, Auckland. The ‘low doc’ loan facility was approved with limited financial information provided by the client. Repayments were to be made on an interest-only basis. No valuation was required.

      Loan: $635,000
      End Value: $910,000
      Loan-to-value: 70%
      Term: 6 months

    • Commercial Property Loan Commercial Office Purchase

      A six-level commercial office building in Auckland CBD. A commercial property loan was provided to assist with the purchase of the property. Settlement occurred within just 48 hours of receiving the loan application enabling the client to avoid penalty interest and default action. Repayments were on an interest only basis. No valuation was required.

      Loan: $7,200,000
      End Value: $10,500,000
      Loan-to-value: 69%
      Term: 3 months + extension

    • Industrial Property Loan Land Purchase

      Vacant industrial land located at Tauriko Business Estate, Tauranga. The industrial property loan was provided as a 'bridge' to enable the client to complete a restructure of its group debt currently with a main bank. The client would eventually build a warehouse on the site. Repayments were on an interest-only basis. No valuation was required.

      Loan: $5,000,000
      End Value: $7,500,000
      Loan-to-value: 67%
      Term: 6 Months


    Reach out today for a hassle-free bridging loan in NZ.

    With ASAP Finance, you gain a lender that understands the property world, and an adviser that will help you bridge the gap. Acquire your next property with ASAP Finance today.