Most developers lose loan approvals not because the deal is bad, but because the numbers are sloppy. Credit teams don’t read long narratives or dig through chaotic spreadsheets.
They look for five metrics, and if those numbers are clear, consistent, and defensible, your chances of getting a “Yes” jump dramatically.
1. Loan-to-Cost (LTC)
This tells lenders how much skin you have in the game. Present actual total development costs, verified QS numbers, and highlight committed equity. Clean LTC = confidence.
2. Loan-to-Value (LVR)
Show a recent valuation and stress-test it at minus 5–10 percent. Lenders want to know the deal survives moderate market fluctuations. Present the valuation on one page with assumptions clearly listed.
3. Feasibility Profit Margin
If your margin drops below 15–18 percent, lenders get nervous. Present a feasibility summary with revenue assumptions, contingencies, escalation, and a sensitivity table showing margin stability under cost or sales shifts.
4. Cashflow Timing (Equity + Debt Drawdown)
Messy timing models kill approvals fast. Build a month-by-month cashflow that aligns equity injections with the actual draw schedule. Lenders don’t expect perfection—they expect realism.
5. Interest Cover & Debt Serviceability
Show how interest is capitalised, your buffer for rate changes, and the project’s cashflow resilience. Put forward two scenarios: base case and stressed case. If both clear, lenders relax.
"When these five numbers are clean, lenders approve faster. Not because they love you, but because you’ve removed the uncertainty that forces a credit team to say 'No'."
Preparing your deal properly isn’t paperwork—it’s strategy. And it’s how mid-market developers turn good projects into funded projects.