Shovel-Ready Development Finance

A shovel-ready development is the strongest position a developer can be in when approaching a lender. The DA is approved. The builder is contracted. The QS report is done. The presales are in place. Every piece of pre-construction risk has been resolved before the first drawdown request is made. Development lenders respond to this. Approval timelines are faster, terms are cleaner, and the documentation package is structured around what the lender needs rather than what the developer still needs to arrange. Settled Funding Group works with developers who have done the hard work and are ready to build. Joseph Farhat confirms the package is complete, identifies the right lender from the 90+ panel, and submits with confidence.

Who This Is For

• •Developers who have DA approval, a builder contract, and are ready to start construction immediately on receipt of first drawdown.
• •Those who have completed all pre-construction requirements and need the development facility established quickly to capitalise on the approval.
• •Investors who have purchased a shovel-ready site and need the construction funding in place before or concurrent with settlement.
• •Developers who have been through a long pre-development process and want fast finance to capitalise on their approval before builder start windows close.
• •Those whose existing land loan is due and who need a development facility to replace it ahead of construction starting.
• •Developers whose builder is ready to commence and who need drawdown authority in place before the site mobilisation date.

How Shovel-Ready Development Finance Works

Shovel-ready projects are the strongest category for development lenders because all pre-construction risk has been removed. The DA is current. The fixed-price contract is signed. The QS report confirms the cost. The presales position is clear. Lenders assess the DA, the fixed-price contract, the QS report, the presales position, GRV and LTC, developer experience, and income. Because the documentation package is complete, approval timelines are often faster for shovel-ready projects than for earlier-stage applications. Joseph Farhat reviews the package, confirms everything is in place, and identifies the right lender before submission.

What Lenders Assess for Shovel-Ready Development Finance

• •DA approval: the DA must be current, unconditional, and cover the full project scope. Any outstanding conditions that affect construction commencement must be resolved before submission.
• •Fixed-price builder contract: a contract with a licensed builder for a fixed price is the standard requirement. This removes construction cost risk for the lender and confirms the project is truly ready to start.
• •QS report: the quantity surveyor report confirms the construction cost budget, validates the builder contract pricing, and confirms project viability. This is a required document for most development lenders.
• •GRV and LTC: the gross realisation value across all dwellings or tenancies, and the loan-to-cost ratio against the total development cost. These are the primary metrics lenders use to determine maximum exposure.
• •Presales position: the presales coverage required depends on the lender and the project scale. Major banks typically require presales covering the full loan amount. Non-bank lenders are more flexible.
• •Developer experience: prior development projects strengthen the application. First-time developers are considered by non-bank lenders when the project is well-structured and the package is complete.
• •Income documentation: full doc or alt doc depending on the lender. Non-bank lenders accept one year of financials or BAS statements for developers with complex income structures.

The Shovel-Ready Development Finance Process: What to Expect

1. 1.Initial review: Joseph Farhat reviews the complete pre-construction package to confirm all requirements are in place and identify the right lender and structure before any application is prepared.
2. 2.Application submitted with DA, builder contract, QS report, presales (per lender policy), income documents, and project feasibility. For shovel-ready projects, the documentation package is complete from the start.
3. 3.Development valuation ordered by the lender to confirm the GRV on a per-dwelling and whole-project basis. Valuation turnaround is typically faster for shovel-ready projects with a complete documentation package.
4. 4.Approval issued, typically faster than an earlier-stage development application because the pre-construction risk has been resolved. Construction commences on receipt of the first drawdown.
5. 5.Staged construction drawdowns released at milestones as construction progresses. Settled Funding Group manages the drawdown process through to completion, coordinating progress inspections and drawdown requests.

Indicative Finance Options

Shovel-Ready Development Finance Broker

A shovel-ready site needs a lender that can move at the same pace as the project, and not all can. Lenders differ widely on how quickly they assess DA-approved, construction-ready developments, and on their appetite for presales, loan-to-cost, and builder readiness. A deal one lender slows down is funded fast by another geared for it. A broker who knows which lenders actually move quickly on shovel-ready projects saves you weeks of wasted applications, protects your credit file from unnecessary enquiries, and opens access to non-bank and specialist funders most developers cannot reach directly.

Settled Funding Group represents you, the borrower, not the lender. Joseph Farhat reviews your DA-approved site, build contract, presales position, feasibility, and timeline, 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.