Banks are failing SME property developers.
We believe property development is inefﬁciently served by traditional funding sources.
Anyone working in property development hears the same complaints from their peers — not only about the difficulty in getting the capital, but the impossibility of speaking to anyone who makes the decision. Slow, complex processes, hidden fees and overheads, far too much paperwork… the list goes on.
There is huge pain and frustration with current lenders…
Unsurprisingly, the level of trust in banks is rock bottom, scoring just 2.4 out of 10*, with 17.1 percent of SME developers saying the lack of trust is too far gone.
Development finance is key
Development finance is by far the most important issue to SME developers compared to development approvals and the development site.
Banks are crippling SME developers, only funding ‘gold brick’ projects while the rest are getting left behind. You can see the banks’ point — it’s pretty much the same amount of due-diligence work for a $500,000 loan as a $50m one, making the service of smaller loans an unattractive proposition.
We created CrowdProperty because we’ve been where developers are, on the borrower side of the transaction. We have navigated banks’ endless processes that neither understand property nor our business proposition and showed no signs of wanting to. We’ve climbed mountains of pointless paperwork and dealt with advisers and business development staff who are the real-life equivalents of the ‘computer says no’ character. We have walked many miles in those shoes, taken them off, stared through the hole in the sole and shaken our heads in sad disbelief.
Our business starts and ends with a deep understanding of the financing of bricks and mortar. We take the time to understand your business, what you’re trying to create, and support you through the whole process.
By efficiently matching investors and borrowers with our purpose-built technology, CrowdProperty offers superior borrowing outcomes to SME developers.
What developers dislike with traditional finance is how slow they respond, how complicated the process is, and how uncertain the outcome can be when banks can change their policies at any time. CrowdProperty offers speed, ease, certainty — speed of making a decision about your property project, ease of the process, and the certainty of receiving that finance once your project is approved.
Property finance by property people who have been in your shoes just makes sense. If you have an upcoming project, apply to have it reviewed — register as a borrower here.
Source: *Australian Bureau of Statistics, Lending indicators January 2020 ; ATO Quarterly Report Mar 2019; AHURI