The short answer
Fast loans for property developers cover the short, time-critical pieces of a project that a construction lender won't or can't fund quickly: settling a site, holding land through approvals, covering a cost overrun, repaying a construction facility at expiry or releasing equity from unsold completed stock. We lend $20,000 to $5,000,000 against the project or other property, with sales or a refinance as the exit.
- Settle a site on the vendor's timetable, not the bank's
- Top up a stalled build or fund a cost overrun
- Pay out an expiring construction loan and hold stock while it sells
- Release equity from completed stock to start the next project
| Loan size | $20,000 to $5,000,000 |
|---|---|
| Security | Sites, completed stock or other property, first or second ranking |
| Typical term | 3 to 12 months |
| Exit | Sales settlements, a refinance or the next project's funding |
Fast loans for property developers are short-term, property-secured loans that fill the gaps a construction facility leaves open. They settle land on a tight contract, keep a site funded through planning, cover a cost blowout mid-build, repay a construction lender when the facility expires and release equity from finished stock. We lend $20,000 to $5,000,000, usually for three to twelve months, and the exit is almost always a sale or a refinance.
If you need full construction funding with progress draws, that’s covered on our commercial development loans page. This page is about the fast pieces in between.
Why do developers turn to private lenders?
Developers turn to private lenders because banks have pulled back from development lending and move slowly on anything outside a standard construction facility. ASIC’s 2025 report on private credit found real estate makes up around 40 to 60% of Australia’s private credit market, and explained why: after the global financial crisis, prudential rules made capital requirements on construction and development lending unattractive for banks. The RBA’s October 2026 review also noted that Australian private credit funds are more exposed to real estate, including construction and development.
So non-bank and private money now does a big share of the work, and the speed difference is real. A bank credit committee might take weeks to consider a land settlement, a cost overrun variation or a residual stock loan. A private lender can turn the same request around in days.
When do fast loans for property developers make sense?
Fast loans for property developers make sense at the start and end of a project, where the urgent pieces cluster. Here’s where developers most often come to us:
| Project stage | What happens | How we help |
|---|---|---|
| Site acquisition | Vendor wants a short settlement or the deposit is due on exchange | Fund the deposit or settlement against the site or other property |
| Planning and approvals | Land is held for months while the DA progresses | Hold the land with a short loan, refinanced into construction funding |
| During construction | Costs exceed budget or a builder needs a top-up | Second-ranking loan to fund the gap |
| Completion | Construction loan expires with stock unsold | Residual stock loan to repay the lender |
| Between projects | Equity sits in finished stock | Equity release for the next site deposit |
Fast private money costs more than a bank construction loan. It’s the right choice when a missed settlement, a stalled build or a forced sale would cost more.
What is a residual stock loan and when do you need one?
A residual stock loan refinances the remaining debt on completed but unsold units or houses, so you can sell them over months instead of in a hurry. Construction facilities have hard expiry dates, and once a project is complete, many lenders want out. If sales are slower than forecast, the developer is left with good stock and a lender pushing for repayment.
A residual stock loan from us pays out the construction lender, takes security over the completed stock and is repaid as each unit settles. It turns a rushed sale into an orderly one, which often protects far more value than the cost of the loan.
Can you lend against land before construction starts?
Yes, and it’s one of the most useful tools for a developer. A site can be settled or held on a short loan while approvals, design and construction funding are put in place. The loan is sized on the land’s current value, not the projected end value, and repaid when construction funding is drawn or the site is sold.
For straightforward bridging between buying one site and selling another, see fast bridging loans. For a comparison of the two fastest structures, read caveat loan vs bridging loan.
What about cost overruns mid-build?
A cost overrun can be funded with a second-ranking loan behind the construction lender, secured over the project or other property. Construction lenders usually won’t increase a facility mid-build without fresh valuations and a re-approval, and the builder won’t keep working without payment.
The construction industry is under real strain. ASIC reported construction made up 24.5% of companies entering external administration for the first time in 2025–26. If your builder fails mid-project, you may need money fast to secure the site, appoint a replacement and get work moving again. We can often work alongside the first lender to fund that gap, provided they consent where needed.
Illustrative example: three townhouses, one left unsold
Illustrative example: a developer completes three townhouses. Two have sold and settled, paying down most of the construction loan. The third, worth about $1,250,000, hasn’t sold, and the lender’s facility expires in three weeks with $700,000 still owing. The lender won’t extend.
We approve a $750,000 residual stock loan over the unsold townhouse within two days, covering the payout and a small buffer for holding costs. It settles before the facility expiry. The developer relists, sells four months later at a stronger price than a rushed sale would have achieved, and repays us at settlement. Talk to us about a developer loan if you’re up against a facility expiry.
What will you need to see from a developer?
We need the property details, the project position and the exit. For most files:
- ID for borrowers and guarantors, and the company structure.
- Title details, rates notice and any existing mortgage statement.
- For a site: the contract of sale and any DA documents.
- For a build: the construction contract, latest QS report and cost-to-complete.
- For stock: a list of units, sales so far, agent appraisals and any exchanged contracts.
- A one-page summary of how the loan is repaid.
Experience helps but isn’t essential for smaller projects. If you also want long-term funding on completed investment stock, our private first mortgage business loans can be the next step.
How is a developer loan repaid?
A developer loan is repaid from a sale, a refinance or the next stage of funding, and we agree which before we lend. The exit has to match the purpose:
- Site settlement or land holding: construction funding drawn once approvals are in, or sale of the site.
- Cost overrun: sales settlements at completion, or a refinance of the whole project.
- Residual stock: each unit’s settlement pays down the loan until it’s cleared.
- Equity release: sales of the remaining stock, or a long-term investment loan on units you keep.
We like to see a backup. If the plan relies on sales, we’ll look at realistic prices and timeframes, and what happens if the market takes longer. Our guide on business loan exit strategy explains how to make an exit hold up.
Move the project forward
Tell us where the project is stuck and what gets it moving, and an experienced lender will look at it the same day. There’s no credit check on your first enquiry, we won’t send your file to a long list of lenders, and if the numbers don’t work we’ll tell you plainly so you can pursue another option.
Give us accurate figures in the form: what each property is worth, debts, sales so far and deadlines. That’s what lets us give you an answer that holds. Apply for developer funding, call 1300 852 150, or see our lending for other industries.
Property developers: your questions answered
Do you fund the full construction of a project?
Full construction funding with progress draws is a different product with longer terms and quantity surveyor reporting. We cover it on our commercial development loans page. On this page we're talking about the short, urgent pieces around a project, which are often what holds a development up.
Can I borrow against a site before the DA is approved?
Yes. We assess land without approval as land, so the loan is sized on what it's worth today, not the end value. It's a common way to settle a site quickly or hold it while the approval comes through, with the exit being construction funding or a sale once the approval lands.
What if my construction lender won't extend the facility?
That's a classic residual stock situation. We can refinance the remaining debt against the completed but unsold units or homes, giving you time to sell properly instead of discounting. We'll want to see the sales evidence, the realistic price for each unit and how many months the stock is likely to take to clear.
Can a first-time developer get a fast loan?
Yes, if the security and exit stack up. Smaller projects such as a duplex or a few townhouses are often the first step for builders and investors. We look at your property position and the plan more than your track record, although experience on the team helps.
Can I use equity in a completed project for a deposit on the next site?
Yes. Releasing equity from completed but unsold stock to fund the next site's deposit is one of the most common requests we get from developers. The loan is secured by the completed units and repaid as they sell. We'll size it on the current value of the stock and leave a buffer so you're not forced to sell below a fair price.
Sources we checked
Written by the BizLoansFast lending team · Updated 2026-10-05