Non-Bank Development Finance

A bank decline does not end a development project. Non-bank development lenders assess applications differently: they look at the project holistically, considering GRV, LTC, project quality, exit strategy, and developer experience without requiring the same documentation or applying the same policy restrictions as major banks. For developers who have been declined by a bank, who are self-employed, who have limited track record, or whose project sits outside bank appetite, a non-bank lender is often the more practical and faster path to funding. Settled Funding Group works across bank and non-bank development lenders, and for unique scenarios can introduce you to private finance options. Joseph Farhat identifies the right fit from the 90+ panel before anything is formally submitted.

Who This Is For

• •Developers who have been declined by a major bank due to policy restrictions, limited track record, or project type.
• •Those building in locations or with project types that banks restrict or limit, including regional areas and mixed-use configurations.
• •Developers with limited track record who need a lender willing to assess the project on its merits rather than past experience alone.
• •Self-employed developers with complex or variable income who need alt doc options rather than two years of full tax returns.
• •Those whose project GRV or LTC falls outside bank appetite but within non-bank policy.
• •Developers who want faster approval than a major bank can provide, particularly where a builder is ready to commence.

How Non-Bank Development Finance Works

Non-bank development lenders assess holistically: GRV, LTC, project quality, exit, developer experience, and the income picture, without requiring the same documentation level as banks. Alt doc (one year of financials, BAS statements) is widely available. Some non-bank lenders use asset-based assessment where income plays a secondary role to the quality of the project and security. Joseph Farhat identifies which non-bank development lenders on the panel best match the specific project type, income situation, and developer profile before any application is prepared.

A strong example of what non-bank development finance can deliver: a $3.36M duplex funded through a non-bank lender when bank channels were not available. Read the Miranda duplex case study to see the factors that made it work and how the right non-bank structure was identified for a complex scenario.

What Non-Bank Lenders Assess for Development Finance

• •GRV: the gross realisation value of the completed development across all dwellings or tenancies. This is the single most important metric for non-bank development lenders.
• •LTC: loan-to-cost ratio against the total development cost including land, construction, and holding costs. Non-bank lenders can extend to 80% LTC compared to 70% at most major banks.
• •Project quality: the DA approval, the builder contract, the QS report, and the feasibility of the project. Strong project fundamentals compensate for weaker income documentation.
• •Developer experience: non-bank lenders assess first-time developers more openly than major banks, particularly when the project is well-structured and the builder has a strong track record.
• •Income documentation: alt doc options include one year of financials, BAS statements, or an accountant's letter. Some non-bank lenders use asset-based assessment where income is secondary.
• •Exit strategy: individual lot sales, portfolio refinance, or a combination. The lender needs to understand how the facility will be repaid and on what timeline.
• •Approval speed: non-bank development lenders typically approve and issue formal offers one to three weeks faster than major banks, a material advantage when builder start dates are fixed.

The Non-Bank Development Finance Process: What to Expect

1. 1.Initial review: Joseph Farhat reviews why bank channels are not the right fit and identifies non-bank development lenders whose policy matches the specific project, income situation, and developer profile.
2. 2.Application prepared and tailored to the selected non-bank lender's documentation requirements. Different lenders have different income doc requirements and Joseph Farhat prepares each application accordingly.
3. 3.Non-bank lender approves, typically one to three weeks faster than a major bank from submission of a complete application package.
4. 4.Staged construction drawdowns managed by Settled Funding Group throughout the project, coordinating progress inspections and drawdown requests with the lender.
5. 5.At practical completion, individual lot sales settle progressively and discharge the facility, or the project is refinanced to a long-term investment or commercial facility.

Indicative Finance Options

Non-Bank Development Finance Broker

Non-bank development lending is a fragmented market in its own right. Each non-bank and specialist funder sets its own appetite for presales, loan-to-cost, gross realisation value, asset type, and developer experience, and those settings move constantly. A facility one funder declines is approved comfortably by another. A broker who knows which non-bank lenders are actively funding your project type, location, and stage saves you weeks of wasted applications, protects your credit file from unnecessary enquiries, and gives you direct access to specialist development funders that most developers cannot approach on their own.

Settled Funding Group represents you, the borrower, not the lender. Joseph Farhat reviews your project feasibility, presales position, loan-to-cost requirement, and exit strategy, then matches the project to the right lender from our 90+ panel and negotiates terms on your behalf. We prepare and manage the submission end to end, from indicative assessment through to your first drawdown. 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 project is complex, time-critical, or has been declined elsewhere, talk to us early and we will tell you honestly what is achievable.