What is residual stock finance and how does it work?
- Residual stock finance provides specialist funding secured against completed or near-completed residential properties that remain unsold at the end of a development project. These loans are designed to bridge the gap between project completion and final sales settlement.
- By refinancing the construction facility at completion, residual stock loans release capital tied up in unsold stock, giving developers the time and flexibility to achieve the best possible sales outcomes — rather than discounting under financial pressure.
- With short-term loan structures and progressive repayment as individual properties settle, this financing supports an orderly and profitable wind-down of your development.
Why trust CrowdProperty with residual stock financing and loans?
Completing a development is a milestone — but managing the exit well is where margins are protected. When unsold stock is sitting on an expiring construction loan, the pressure to discount can be significant. CrowdProperty’s residual stock finance is built to give developers breathing room so that you can sell on your terms, not the bank’s.
- Speed: Receive a prompt ‘decision in principle’ (DiP)
- Expertise: CrowdProperty’s property team comprises specialists in development finance and exit strategy, assessing each loan against your sales programme and market conditions.
- Certainty: Institutional funding support ensures a smooth transition from your construction facility, with no delays at the critical point of project completion.
- Flexibility: Partial repayments accepted as individual units or lots settle, progressively reducing your loan balance throughout the sales campaign.
We offer:
- Transparency: No hidden fees, no surprises — just clear finance proposals you can understand.
For all residual stock loans, we offer:
- Loan sizes up to $20m
- LVR up to 75% of as-is completed valuation
- Loan terms from 6 to 12 months
- Competitive interest rates from 9.00% per annum
- Establishment fees from 1.50% exclusive of GST
- No exit fees (subject to minimum loan term)
- Partial repayments are accepted as individual properties settle
Features and benefits of residual stock finance
- Streamlined application process. Quick, efficient access to funds with an online application and fast indicative response — so you can transition from your construction loan without interruption.
- Sell at the right price. Remove the pressure to discount unsold stock. Residual stock finance gives you time and financial stability to run a proper sales campaign and protect your margins.
- Progressive repayment structure. Partial repayments accepted as individual units or lots are sold and settled, reducing the loan balance progressively rather than requiring a single lump-sum exit.
- Expert project assessment. Loans assessed by property development professionals with many years of combined experience, including review of the sales programme, market conditions, and realistic exit timeline.
How it works and things to know
1. Application and evaluation
Submit your project details online, including the completed development, remaining stock inventory, and your sales programme. CrowdProperty’s property experts assess the as-is valuation, absorb the sales timeline, and confirm the exit strategy.
2. Funding
Once approved and agreed, projects are listed on the CrowdProperty platform, where investors pledge funds to the project loan.
3. Drawdown and repayment.
The loan is drawn down at settlement, typically refinancing an existing construction facility. As individual properties are sold and settled, proceeds are applied to reduce the loan balance, with the loan fully repaid upon completion of the sales programme.
