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Loans For Builders

Alternate secures loans for builders all across NZ. If you’re a builder requiring a construction loan for a new build, to buy land, a lick & flick, an investment property, or bringing an “as is where is” house up to an insurable standard, then Alternate Finance would love to partner with you.

In fact, even if you just need funding for tools or vehicles, Alternate Finance helps with loans for builders in the form of equipment loans; we’ve got you covered. Alternate Finance likes to partner with growing building companies, so reach out, and if we can establish a win/win outcome. You’ll have access to the funding you need. Build a home with us as your financial partners without having to tap into your equity. 

 

 

Construction Loans
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Loan Options For Construction

The term “construction loans” is usually finance for the materials you need, but it also extends to other loan solutions like lending you the capital to purchase a distressed home to renovate and resell. Joint ventures, or bridging capital, are our favourite type of loans for builders. If you have reasonable securities, such as land, or a healthy P&L and solid development plan, we’d love to partner with your construction business and help you grow.

Builder Finance With An Excellent Interest Rate

Builder finance varies in its interest rates, depending on the size of the loan you’re looking for and what period you want the loan for. If it’s a large home loan you’re looking for to purchase a property, and you only need a bridging loan for the duration of the repairs until completion, before it’s sold, then there’s a high chance we’ll give you an excellent fixed interest rate that works with your business model. We’re not your mortgage broker; it’s a short-term partnership that can help you make financial advances you usually couldn’t afford to fund.

A Partner in Finance For Builders

The building industry is a New Zealand economic powerhouse, but the challenge is often in financing your next project. First, you’ll need a lender that trusts you, and then you face the unpredictabilities of life, such as weather delays and the likes. All this while paying interest costs. If you borrow to build, you’re making an educated guess and crossing your fingers that all goes well. Construction finance from Alternate develops into a relationship, meaning that once you’ve proven you’re reliable in repayments, securing finance will become a lot easier. Imagine lifting the phone and getting a “yes” on a build loan within minutes.

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Get loans for builders from Alternate Finance with the freedom of loan repayments spread over 36-48 months, unless arranged otherwise. You’ll receive an email with an annual interest rate ranging between 13.95% & 26.98% p.a. for your short-term builder finance loans.

For further information, including our loan default interest rate guide, please view our rates and fees here.

If you want builder finance from Alternate, it’s important that you understand our terms of trade and lending criteria. We are responsible lenders, adhering to New Zealand’s responsible lending code, and want you to know the conditions. When making an application for loans, you’re granting Alternate Finance Limited permissions to store your sensitive information. Our company will endeavour to keep all information on the Alternate Finance website accurate and up to date, relating to your loan for business investment. If you find an error, and if brought to our attention in writing, we will rectify it within a reasonable timeframe. For more information relating to the terms of your financing, please view this page.

Your details are data protected when applying for a construction loan, as we have end-to-end encryption on all of our web-forms. All loan information you provide will be treated confidentially and you can have confidence that your loan application will remain secure.

Get loans for builders from Alternate Finance with the freedom of loan repayments spread over 36-48 months, unless arranged otherwise. You’ll receive an email with an annual interest rate ranging between 13.95% & 26.98% p.a. for your short-term builder finance loans.

For further information, including our loan default interest rate guide, please view our rates and fees here.

If you want builder finance from Alternate, it’s important that you understand our terms of trade and lending criteria. We are responsible lenders, adhering to New Zealand’s responsible lending code, and want you to know the conditions. When making an application for loans, you’re granting Alternate Finance Limited permissions to store your sensitive information. Our company will endeavour to keep all information on the Alternate Finance website accurate and up to date, relating to your loan for business investment. If you find an error, and if brought to our attention in writing, we will rectify it within a reasonable timeframe. For more information relating to the terms of your financing, please view this page.

Your details are data protected when applying for a construction loan, as we have end-to-end encryption on all of our web-forms. All loan information you provide will be treated confidentially and you can have confidence that your loan application will remain secure.

Did You Know?

Joint venture or builder finance?

Joint venture or builder finance?

Loans for builders who want to repair and flip a distressed house can come in the form of a joint venture. This is where Alternate Finance acts as the lender providing the money, and you would provide the construction repairs, another form of construction contract.

Security needed for construction loans.

Security needed for construction loans.

Construction loans are often requested when the builder has no capital, nor any security, to provide us. It makes sense that you'd need a construction loan for the materials to complete a job, but Alternate Finance needs some form of security in case you don't get paid or if the job is disputed. If we can jump these hurdles and you have the correct insurance in place, then we'll happily help.

What If I default on JV repayments?

What If I default on JV repayments?

When in a joint venture, it's a partnership. The first thing we do is try and work out a repayment schedule that you can deposit without defaulting and not putting you under cash flow pressure. In the unlikely situation that you're financially over committed beyond repair, then the property will be sold, and Alternate Finance will take its share according to the security clause. It's simple, clean, and it's unlikely you'll be chased for funds because the house has a value that will most likely satisfy any debt.

Is builder finance the same as bridging finance?

Is builder finance the same as bridging finance?

In some cases, yes. We can bridge the gap when the building you purchase is uninsurable, and therefore you can't get a loan from the bank. You'll then make the required repairs, which is usually within a six-month period, and reinsure, apply for a mortgage or sell the property at a considerable profit. The capital will be repaid upon sale or refinancing with the bank.

Other types of loans for builders.

Other types of loans for builders.

If you're in the building industry, you'll need the right tools and the right financial partner. At various time throughout your career it's likely you'll be interested in our other business loans such as asset finance, allowing you to buy tools and vehicles, venture capital, equipment finance and small business loans. We are here to support you from the construction phase through to the sale of the property.

Difficult to get a construction loan?

Difficult to get a construction loan?

It's not difficult to get a construction loan, assuming you have a history of success and a decent credit rating personally. If you've completed projects similar to the one you're requesting funding for at a profit and you can prove it, then it would almost be a no-brainer for a finance company to decline your application. Most importantly, there needs to be some form of security, which is often the investment property itself or the assets, such as tools and various other items.

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Frequently Asked Questions

If you’re a business, you’ll need to have traded for at least two years, or have a history of success in past entities. You’ll need to provide us with security in some form. Often, the property itself is a form of security.

Contact our friendly team for more information about construction loans