Vía Capital

Residual Stock Finance

Your developer client has completed the project but a handful of units remain unsold. The construction lender wants out. A residual stock loan from Vía Capital refinances the construction facility and gives your client the time and breathing room to run a proper sales campaign - without a distressed selldown.

Product Parameters

Loan size
$1,000,000 - $20,000,000
Maximum LVR
70% of as-is value of remaining stock
Loan term
6 - 18 months
Security
First registered mortgage over unsold completed units
Construction status
Practical completion must be reached
Borrower entity
Company or trust with corporate trustee
Geography
NSW, VIC, QLD

All parameters shown are indicative and based on standard scenarios. We may work outside these parameters depending on the strength of the deal. Contact us to discuss your specific scenario.

View full product parameters →

How it works

1

Construction complete, stock remaining

Your client has reached practical completion but some units remain unsold. The construction lender - bank or non-bank - is applying pressure to repay the facility. Your client needs to refinance.

2

Residual stock loan settles construction debt

Vía Capital takes a first mortgage over the remaining unsold units and advances funds to repay the construction lender. Your client is no longer under time pressure from the construction facility.

3

Sales campaign runs, loan repaid

With the construction lender repaid, your client can run a measured sales campaign - achieving better prices than a distressed sale would produce. As units sell, the residual stock loan reduces. When the last unit settles, the facility is repaid and discharged.

Is this the right product for your client?

This suits:

  • •Developers at practical completion with 2-8 units unsold
  • •Situations where the construction lender's timeline is forcing a premature or distressed sales campaign
  • •Projects in markets where a 6-12 month sales period would produce significantly better prices than a forced selldown

Frequently Asked Questions

How do you value the residual stock?
We commission an independent valuation of each remaining unit at its current as-is market value. Our LVR of up to 70% is applied to the aggregate value of the remaining stock.
What if units don't sell during the loan term?
We assess the sales environment at the time of application and consider the proposed marketing strategy. Where there's a genuine risk of extended absorb periods, we factor that into the loan term. We don't extend terms indefinitely - your client needs a credible sales timeline at the outset.
Can you fund residual stock behind a bank construction loan?
No. We take first mortgage security over the residual units. If there's an existing registered mortgage, it needs to be discharged as part of settlement.

Got a deal that needs a private lender?

Submit your scenario and we'll come back with an indicative position - loan amount, LVR, term - within 24 business hours. If it doesn't fit, we'll tell you that too.

Submit a Residual Stock Deal