Finance question
Can I get finance for a small commercial development?
Often yes, with the right structure. A small commercial development can be funded by releasing equity from a site or property you own, and larger builds run through specialist development lenders on staged drawdowns. The feasibility, your equity and any presales shape which lenders will look.
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The short answer
Two paths, depending on the project
There are two ways a small commercial development gets funded, and the right one depends on the size of the job. If you already own the site or another property with equity, funds can be released against that property to cover early works, a deposit or a modest build, using the property-backed lending that reaches into the $5 to 6 million range. That is the simpler path.
A full ground-up development is a different animal. Genuine construction finance runs through specialist development lenders on staged drawdowns, where the money is released against the build as it hits agreed milestones. These lenders look closely at the feasibility, the builder, the fixed-price contract and, for larger projects, any presales or pre-leases. Pricing and terms are assessed deal by deal rather than off a standard rate card.
Our job is to read the project honestly and point it at the right structure. For a small development, releasing equity you already hold is often the cleaner and cheaper route. For a bigger build, we match it to a lender that writes construction facilities and package the feasibility properly before it goes in.
Do you qualify?
What a development deal needs.
A site or property
Owned with equity, or the site being developed.
A feasibility
Costs, timeline and end value the lender can read.
Your equity in
Lenders want to see your own contribution to the project.
A builder and plan
A credible builder and a fixed scope for a ground-up build.
Why the structure matters here
Equity release is simplest
Funding a small job against property you own is the cleaner path.
Construction is staged
Ground-up builds draw down in stages against milestones.
Feasibility decides it
Costs, end value and presales shape which lenders will look.
A real example
An owner holds a serviced commercial block with about $700k in equity and plans a two-unit strata build. Rather than a full construction facility, equity is released against the block at a single-digit rate to fund the slab and early trades, staging the rest later. Illustrative only, subject to valuation and feasibility.
Common questions
Frequently asked questions
Can I fund a small development against property I already own?
Often yes. Releasing equity from a site or property you hold is the simpler path for a modest job, subject to valuation and lender assessment.
How does construction finance for a ground-up build work?
It runs through specialist lenders on staged drawdowns, where funds are released against milestones as the build progresses.
What do development lenders want to see?
A clear feasibility with costs and end value, your own equity in the deal, a credible builder, and for larger projects any presales or pre-leases.
Are development rates the same as a normal property loan?
Not always. A straightforward equity release can sit at single-digit rates, while full construction facilities are priced and assessed deal by deal.