You may have heard of stretch senior construction debt, or perhaps know it as stretch business lending or stretch finance. It simply means the lender will look to lend to a higher than standard LVR (loan to valuation ratio).
Stretch finance is used for development purposes. Senior stretch loans “stretch” to accommodate the financing needs of the borrower, but at a higher risk to the lender than a conventional senior loan.
For the borrower, the senior stretch loan provides speed and convenience. The borrower does not have to work with two different parties (a senior and junior lender) to have more of their development funded.
Our stretch senior development finance provides significantly higher loan to value ratio’s than traditional senior debt on a first mortgage basis with no mezzanine facility – effectively covering what a senior and mezzanine combination previously achieved.
Stretch is exit strategy based with repayment generally coming from the sale of residential development projects.
From a developer’s perspective, equity can be spread over a greater number of projects. Stretch business lending provides more funding and thus requires less equity on each project, significantly increasing your ROI.
Traditionally lent senior debt might sit at a maximum LVR of 65%, using stretch finance, we may be able to “stretch” that LVR to 75%. This frees up equity for use in other projects.
Stretch is applied for at the start of the project and a feasibility study will be required to ascertain the projects requirements.
Experienced property developers with a solid track-record of producing:
Thank you IBN for a great start to my day, breakfast with John Anderson, WOW!!! Every person in that room left in awe and touched by a Man driven by an idea. I see things differently now.
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We had just over a week to come up with some funds... and they did! The solution was in place and ready to settle a few days later.
Thank you for a great start to my day, breakfast with John Anderson, WOW!!! Every person in that room left in awe and touched by a Man driven by an idea.
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I found Allan Pease to be a highly entertaining and amusing speaker and one who gives an insight into peoples feelings and attitudes being expressed by their facial and body actions. I am looking forward to more excellent speakers in 2016.
Thank you to Fiona for inviting me to the event on Wednesday night to listen to Sarina Russo, not only was the talk interesting but the people I met were great company and I learnt much.
Thanks so much to Fiona and IBN Direct for the invitation to the Sarina Russo Think Speakers event. It was great to be surrounded by so many wonderful local business people and hear the highs and lows of Sarina's journey.
Thank you IBN for inviting me to your latest evening to inspire with Sarina Russo. It was a fabulous night of positivity with inspiration, networking over great food and company. I received so much from it personally to take away and implement into my business and every day way of life. I can’t wait for the next event!
Thanks to IBN for the invite to a yet another great event. Glenn Cooper provided some wonderful insights into the history, structure and challenges of Coopers Brewery since its humble beginnings 150 years ago. Thanks again and to Scott Roberts for hosting us at breakfast.
Today, I was invited by IBN Direct- Scott Roberts to breakfast with Glenn Copper from Coopers Brewing. I thought I was going to learn about my favourite wind down.. Beer. But, I was inspired by a Family owned business who cares about their brand and family values. The same as IBN Direct to its customers. Thanks Scott & Fiona.
Many thanks to Scott and the IBN team for the invitation to see Glenn Cooper speak at the breakfast event recently. He was a great story teller and gave me plenty to think about – very inspirational as well.
The speakers were excellent and engaging, guided by a charismatic and knowledgeable MC. A unique opportunity to get up close and personal with such sporting legends. Thank you IBN Direct.
Great day thanks Scott, I always meet other like minded professionals to build referral relationships with and the entertainment, food & company tops it off for an awesome event. Thanks so much for the invite up and for continually running these gottogoto events!
It is really wonderful that IBN is getting behind ‘Think Speakers and Events’ and ‘Profile’ magazine. Lisa Wilkinson was an excellent speaker and it was a great privilege to have dinner with her. Thank you IBN for the opportunity.
Loved the Event! Inspiring, uplifting ...a whole room jammed full of positive! Thanks so much for the invite IBN , stayed in a positive mindset for the whole week! Perfect for team building and personal empowerment. Have been privileged to see 3 amazing speakers and each has lifted the soul to greater heights. Many, many thanks.
IBN always go that one step further to achieve an outcome. If at all possible, they achieve results for their clients. Communication channels are an extremely important part of this business, and IBN have an excellent system. Dealing with IBN is professional, at the same time keeping the personal touch as its focus.
I have utilised Scott’s services on a number of occasions, to assist with complex or unusual finance applications where I was not able to assist my clients. Scott was able to assist me on each occasion, and made the process simple and allowed me to keep my clients happy with their needs met as required. I have no hesitation in recommending Scott.