How Loans for Land Purchase can Solve Cash Flow Concerns

Commercial land loans can provide a fast cash flow solution for development opportunities. This established source of commercial finance can support business clients requiring a facility to help complete a project.

Commercial land loan advantages for business clients

Land loans in Australia can help clients to secure valuable business opportunities. Here are some of the core benefits.

Quick Access to Funds

Commercial land loans are a fast way to acquire funding. With this type of loan, businesses can move quickly to secure a land-purchasing opportunity and free up cash for the development. 

For example, if there’s an auction for land with a brief completion window, with a bridging loan, the borrower can move at speed to optimize their position in securing the deal.

Flexibility

Some types of loans can have restrictive repayment terms but business clients can tailor the agreement to match their needs, which is advantageous in a time-sensitive, or opportunistic situation. 

Land bridging loans have varying loan-to-value (LTV) ratios. This varies between lenders and is also affected by the client’s circumstances and corresponding loan parameters.

With this loan type, land that’s undeveloped or in need of refurbishment can become accessible. That’s the appeal of this financial solution—it can open development doorways to otherwise unattainable properties. Understanding the lending landscape is key in getting results. 

As such, a private lending facility is an attractive alternative to secure fast, flexible funding.

It’s always important to assess the pros and cons of any finance facility. Potential drawbacks of this type of financial solution may include:

●      Higher interest rates

●      Higher borrowing costs

●      Repayment periods that tend to be shorter

Considering all angles helps to determine the most aligned financial solution for your circumstances. Ibrox Capital are well-placed to provide guidance on which type of finance facility is most aligned with your situation and goals.