Company Construction Loans

Borrowing to build through a Pty Ltd company is common for investors and business owners seeking asset protection or tax efficiency, but it changes how lenders assess the application. Lending to a company is treated as commercial or business lending by most lenders, which can broaden the available lender pool but almost always requires director guarantees. The directors' personal financial position is assessed alongside the company. Settled Funding Group works with investors, developers, and accountant-advised clients building through a company, identifying lenders across the 90+ panel whose policy fits the structure. For unique scenarios, we can introduce you to private finance options.

Who This Is For

• •Property investors borrowing through a Pty Ltd company for asset protection or tax reasons
• •Developers using a company as the project vehicle for a residential or commercial build
• •Business owners building commercial or residential property through their trading company
• •Those advised by their accountant to hold the build asset in a company
• •Companies building owner-occupied commercial premises
• •Directors prepared to guarantee a company construction loan personally

How Company Construction Loans Work

A company construction loan follows the same construction mechanics as a personal loan: the facility is structured against the on-completion value, funds are drawn in stages, and a fixed-price builder contract is usually required. The difference is the borrowing entity. Because the borrower is a company, most lenders treat the loan as business or commercial lending, require the company's ASIC details and financials, and almost always require director guarantees. Joseph Farhat reviews the company structure, the directors' position, and the build, then identifies which lenders on the panel are comfortable with the company as the borrowing entity. Matching the right lender to the structure upfront avoids delays later.

Company borrowers with complex or limited financials sometimes need a non-doc or alt-doc structure. The Miranda duplex case study shows how a duplex build was funded on a no-doc basis where standard income verification was not practical. For unique scenarios where bank and non-bank lenders are not the right fit, there are private finance options worth exploring.

What Lenders Assess for Company Construction Loans

• •ASIC details: lenders require a current ASIC company extract confirming the directors, shareholders, and the company's standing. This is the starting point for any company application.
• •Director guarantees: personal guarantees from the directors are almost always required. Lenders need the guarantee as comfort over and above the company and the property security.
• •Company financials: tax returns and financial statements for the company are reviewed to understand its trading position and existing liabilities. Newer companies with limited financials need careful lender matching.
• •Build contract and value: a fixed-price contract with a licensed builder and an on-completion valuation are the standard construction requirements, the same as for personal lending.
• •Directors' personal position: the directors' personal income, assets, and credit are assessed alongside the company, since they guarantee the loan. Where company income is limited, personal strength supports the application.
• •Treatment as business lending: most lenders treat company borrowing as commercial lending, which can broaden the lender pool but sometimes attracts higher rates than personal lending. Non-bank lenders are more flexible on company structure and alt doc.

The Company Construction Loan Process: What to Expect

1. 1.Initial review: Settled Funding Group assesses the company structure, the directors' position, and the build plan. Joseph Farhat identifies lenders comfortable with the company structure and gives an indicative loan amount before anything is formally submitted.
2. 2.Full application prepared with the ASIC extract, company financials or tax returns, director guarantee documents, the fixed-price builder contract, and income documentation.
3. 3.Lender commissions an on-completion valuation and reviews the company and build documentation.
4. 4.Formal approval and loan documents issued, typically two to four weeks from submission for bank lenders, potentially faster with non-bank lenders.
5. 5.Staged construction drawdowns released at build milestones and managed by Settled Funding Group throughout. The loan is held in the company name throughout.

Indicative Finance Options

Company Construction Loan Broker

Company construction loans add a layer of complexity that lender policy treats very differently. When the borrower is a company rather than an individual, lenders assess the corporate structure, director guarantees, financials, and GST position alongside the build, and many banks apply stricter servicing and documentation requirements as a result. Appetite for company borrowers, trust structures, and self-employed directors varies widely, and a structure one lender declines is often funded comfortably by another. A broker who knows which lenders genuinely lend to company borrowers for construction saves you time, avoids wasted applications and unnecessary credit enquiries, and reaches non-bank and specialist lenders that borrowers cannot easily approach directly. For complex corporate structures or declined applications, a broker knows where the deal will actually get done.

Settled Funding Group represents you, not the lender. Joseph Farhat reviews your company structure, director position, and build plan, then matches your scenario to the right lender from our 90+ panel and negotiates terms on your behalf. We prepare and manage the application from assessment through to your first construction drawdown, and for unique scenarios we can introduce you to private finance options. As a broker, we are typically paid by the lender on settlement, so in most cases there is no direct cost to you. If your company construction loan is complex or has been declined elsewhere, talk to us early and we will tell you honestly what is achievable.