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Development Lending FAQ

What do you arrange lending for?

We can arrange lending for a wide range of needs. Primarily we focus on developments, commercial property, large investors, and residual stock lending.


We can also arrange pre-sale underwrites and other complimentary financial tools for development.

Can I borrow with no pre-sales

Yes. There are many lenders in the market that will consider lending to a development with no pre-sales.

How long will an approval take?

This can vary depending on the complexity of the transaction, however, from receipt of all required information we can normally get approvals from funders within 3 – 4 days.

What happens if a project runs over time?

If you have maintained a good relationship with your lender and there are valid reasons for a project running over time then a lender will more often than not work cooperatively with you to ensure the project is finished.

What is the maximum loan term for a development?

Most development loans are 12 months, however, lenders will entertain loans up to 24 months for projects that require a longer term.

What information do you require for an application?

We usually ask for a statement of position, resource consent, detailed feasibility and background of the shareholders as a minimum to put an application together. Please keep in mind, however, the more information we have the better we are able to put an application together and more likely to get a quick approval.

What are capitalised finance costs?

Capitalised finance costs is where the finance costs (interest, establishment fees, line fees and broker fees) are added to the loan amount as opposed to paid each month from cash. It is a recognition that cash inflows do not occur until the project is complete and therefore it is best to have these realised on repayment of the loan as opposed to month to month.

How much will the development loan actually cost me?

This can be hard to determine off some offers, please refer our development finance cost calculator that can help you to ascertain the actual dollar cost of your development finance loan.

Are there lenders that will lend outside of Auckland?

Yes, plenty. At Lateral Partners we have over 140 lenders that we engage with for development lending ensuring that we have someone that will be a fit for transactions of all shapes and sizes (and regions).

How do you get paid?


For development lending we charge a fee paid on drawdown of the loan facility. This is because lenders do not pay commission in this space. This fee can vary in amount but our standard fee is 1.0% of the loan amount. In some instances we may also seek to charge a work fee where appropriate.


All fees will be disclosed up front in writing.