Development
Development finance in Australia, explained
Staged construction and owner-builder projects need capital released against progress, not all at once. Here's how progressive-drawdown finance is structured, and what it actually costs to run.
Development and construction projects don't need the full loan amount on day one - they need capital released in stages, as each phase of work is completed. Funding the whole amount upfront means paying interest on money sitting idle; a progressive drawdown facility charges interest only on what's actually been drawn.
How a drawdown facility works
Rather than a single lump-sum settlement, the loan is released in tranches as the project reaches agreed milestones - slab, frame, lock-up, fit-out, and so on. Alphacon Line is structured this way: a progressive drawdown facility that charges interest only on the amount drawn at any point, with an interest capitalisation option for borrowers who don't want to service interest during the build.
- Interest charged only on funds actually drawn, not the full approved amount
- Drawdowns released against project milestones rather than a fixed calendar
- Well suited to owner-builders and staged projects without a head contractor's fixed-price certainty
- A drawdown fee applies each time funds are released, on top of the standard facility costs
What it costs beyond the headline rate
Alphacon Line is priced from 9.49% p.a., with a risk fee that applies alongside a per-drawdown fee - factor both into the total cost rather than comparing headline rates alone. Assessment runs on self-declaration and the security, with no credit score test, and the facility lends from $200,000 to $10,000,000 for a 6 to 24 month term that can be extended.
The real saving in a drawdown facility isn't the rate - it's not paying interest on capital that's still sitting in the bank account.
Who this suits
Progressive drawdown finance fits owner-builders, small developers, and businesses running a staged project where the build timeline - not a fixed settlement date - is the main variable. It's a different problem to bridging finance, which assumes a single event will repay the loan; a drawdown facility assumes the loan itself tracks a project as it's built.
Matched to the right project, a drawdown facility keeps financing costs tied to actual progress rather than the full loan amount from day one - which is usually the difference between a build that pencils out and one that doesn't.
Draw capital in stages, not all at once
Alphacon Line releases funds against your project's progress and charges interest only on what you've drawn - $200,000 to $10,000,000.
Explore Alphacon LineGeneral information only
This article is general in nature and does not take your circumstances into account. It is not financial or credit advice. Alphacon Capital writes business-purpose loans secured by property.
