Stuck with unsold units draining profits? Residual stock loans let you refinance construction debt at lower rates, unlock working capital, and ditch desperation sales. With 40–70% LVR, terms up to 18 months, and approvals prioritising asset value over market downturns, Formation Finance transforms stagnant stock into liquidity – so you can pivot, reinvest, or wait for buyers on your terms.
🔥 Why sell low when equity can fund high?
✅ Key Features for Developers:
Loan Amount: Refinance 40–70% of unsold unit value
Interest Rates: Lower than construction loans (no build risk)
Term: 6–18 months (aligns with market recovery)
Use Funds For:
▸ Daily operations ▸ New site acquisitions ▸ Debt tranche reduction
No Fire Sales: Hold stock until prices rebound
Case Study: A Sydney developer refinanced $3.2M in unsold townhouses via residual stock finance, slashed interest costs by 32%, and sold units 9 months later at a 19% premium.
H3: 🏗️ From Pressure to Profit
Banks demand quick sales. We fund patience.
Replace High-Rate Construction Debt – Swap 12%+ loans for single-digit rates
Avoid Oversupply Discounts – Market units strategically, not urgently
Reinvest Equity – Seed your next project while managing existing stock
H3: 📉 Downturn-Proof Your Strategy
Unsold due to…
Market slumps? Hold until demand rebounds.
Strategic holds? Leverage equity without selling.
Construction delays? Cover gaps without penalty.
[👉 Immediate Funding? Contact Our Private Lending Team Now]
✅ Tailored for Developers With:
Completed Projects (townhouses, subdivisions, apartments)
10–30% Unsold Stock – Even 1 unit qualifies
Post-Construction Debt – Refinance bank/private loans
Growth Ambitions – Use freed capital to secure new sites
🔥 Fact: Residual stock loans cut holding costs by 22% on average vs. extending construction finance.
Assess Unsold Stock (24hrs)
→ Share project details + remaining units. No fees.
Secure Lower Rates (48hrs)
→ We negotiate with 50+ lenders – you save, not settle.
Reset & Grow (7–10 days)
→ Funds clear construction debt; you control sales timelines.
⚠️ Real-World Fix: A Gold Coast developer avoided $480k in interest by refinancing 14 unsold apartments – then used the savings to secure a Byron Bay land parcel.
Absolutely! We fund 1+ unsold dwellings – no minimum quota.
We offer extensions based on market conditions – flexibility banks won’t match.
