Finance Product

Mezzanine Finance Available Throughout Australia

Applying this Funding to the Property Development Arena

If you need some quick, easy financing for development purpose, mezzanine financing in Australia may be just suite your requirements.
Lightspeed has observed over the years that most of our clients navigate to this funding option.

If you’re facing difficulties securing traditional financing, you may want to consider a subordinated debt such as mezzanine financing.

What is Mezzanine Finance?

Mezzanine finance is a subordinated and hybrid form of debt useful for large projects. It offers property developers quick cash to bridge the funding gap between a senior loan and equity. The gap emerges from the capped Loan to Value Ratio (LVR) on traditional financing options.

Mezzanine financing can also be used when the project’s perceived risk is high and you can’t raise enough capital through traditional options to complete your project.

You can secure between 65% and in some cases up to 90% of your project’s Total Development Cost (TDC) using a mezzanine loan. The balance amount is required to be brought by the borrower as equity. In addition to equity, you will also need to mitigate the project’s risk.

To reduce the perceived risk of your project, can show:

  • Presence of senior debt on your balance sheet.
  • Advances received from buyers in the development phase
  • Construction contracts detailing expected costs

Why Mezzanine Finance for Property Development is a Good Choice

  • Mezzanine financing is an ideal choice, particularly for property developers who are finding it difficult to access traditional funding sources.
  • Not only does it offer quick cash, but they also offer flexible repayment terms.
  • Property developers are often reluctant to raise capital via equity because they don’t want to lose control. With mezzanine finance, you retain almost full control over your project’s development.

Mezzanine Loan vs. Bridging Loan

A mezzanine loan is often compared with a bridging loan since both types of loans offer quick access to cash. However, they differ in terms of tenure.

A bridging loan isn’t the most appropriate choice for property developers because of their short tenure. Mezzanine loans have a considerably longer tenure of up to 18 months, rather than a short 3 month term.

Why is Lightspeed is Your Best Choice for Securing Mezzanine Funding

You want to reach a goal, and we want to help you get there by helping you with your funding requirements.

We understand the quicker the development project is completed, the quicker the assets can be sold and your profit realised and the loan to be repaid

Lightspeed is a specialist when assisting in tailoring a loan to ensure your development is fully funded Throughout the building process, or provide funds so the project can move to the next stage of construction.

When you choose us as your mezzanine finance provider, you will benefit from:

  • Fast approvals
  • Competitive interest rates
  • Loans up to $20 million + is a speciality
  • Private funding for property developers
  • In-house settlements without relying on third-party finance providers
  • Our commitment to managing the long-term client relationships

If you’re looking for mezzanine financing In Australia, let us help you navigate through the process. Operating in all major cities of Australia and in many cases regional areas as well.

Lightspeed is a leading provider of development and construction finance throughout Australia and should be considered when looking at funding decisions.