Residual Stock Finance: What Is it and when is it used?

Residual Stock finance allows developers to access capital tied-up or ‘trapped’ in unsold units within their development projects.

Residual Stock finance allows developers to access capital tied-up or ‘trapped’ in unsold units within their development projects.

For a developer the benefits of accessing this capital are great.

It allows them to take out funds from one project to put towards equity in their next project.

They can access funds required to repay their construction financier.

Developers can extract some profit from a project prior to selling stock.

Provides funding to tie them over as they sell leftover off-the-plan stock.

No need for a developer to lease out an excess stock unit and harm the premium in keeping the apartment ‘brand new’.

Negates the need to discount an apartment and set a negative precedent for remaining future sales.

Useful for cushioning oversupply valuation falls.

Residual stock finance is a flexible funding solution who’s benefits are especially present in a slower economy where sales are taking longer, or when banks are no longer willing to wait for all stock to be sold prior to calling in their loans.

This is especially true in an environment of tightening credit conditions, such as is currently present in Australia.

We currently have excellent offers for residual stock finance. If you or your clients require Residual Stock financing please do not hesitate to contact us.

Please let us know if we can help in any way to get your bank, or non-bank commercial finance needs sorted.

Are you looking to purchase commercial or industrial property within Australia and require private financing? Read on below:

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Are you a property developer looking for project finance to get your site moving? We can help assist you source finance. Are you a or property investor looking to purchase your next asset?

Start here to connect with is and send though some basic information to get the ball rolling or email us directly. We work with lenders Australia-wide ready to fund projects.

This is where CapStack comes in.

CapStack works alongside Australia's most active bank, non-bank and alternative lenders. We help developers and investors fill their capital stack by providing access to the capital puzzle piece they are missing.

CapStack works directly with developers and investors who need access to capital markets.

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