Ensuring Completion of a Major Property Development
Challenge: $2 Million Cash Deposit Threatens Project
A consortium of borrowers had secured substantial bank funding for a large apartment block construction in North Perth WA. However, a major hurdle arose when the bank mandated a $2 million cash deposit to mitigate the risk of project cost overruns. This urgent requirement jeopardised the project’s timeline, as the consortium did not have immediate access to that level of liquid capital.
Solution: Flexible, Multi-Property Security by Q Credit
Q Credit rapidly structured a solution to meet the bank’s non-negotiable requirement. We provided the necessary funds by accepting a combination of first and second mortgages across the consortium members’ various properties.
This innovative structure allowed the consortium to:
- Immediately provide the $2 million cash lodgement to the bank.
- Satisfy the bank’s security requirements and unlock the primary construction funds.
Outcome: On-Time Completion and Seamless Pay Out
With the cash deposit in place, the project proceeded without delay and was successfully completed on time and within budget. Upon completion, the consortium secured the end-financing for the developed apartment block from a bank, which was used to promptly settle the Q Credit loan.
This case demonstrates Q Credit’s capability to provide high-value, complex bridging finance secured by flexible property arrangements, ensuring major property development projects stay on track for success.
