Residual Stock Finance

Residual stock finance from Vía Private. When a developer has completed the project but a handful of units remain unsold and the senior lender wants out, a residual stock loan refinances the existing facility and gives your client the time and breathing room to run a proper sales campaign - without a distressed selldown.

Submit a Residual Stock Deal

Product Parameters

Loan size

$1,000,000 - $20,000,000

Maximum LVR

Up to 70% of as-is value of remaining stock

Loan term

6 - 36 months

Security

First registered mortgage over unsold completed units

Construction status

Practical completion must be reached - we do not fund prior to PC

Valuation basis

As-is value of each completed unit

Repayment type

Interest only

Borrower entity

Company or trust with corporate trustee

All parameters shown are indicative and based on standard scenarios. We may work outside these parameters depending on the strength of the deal. Interest rates and establishment fees are not published online - they are provided in indicative terms issued to your broker. For our full pricing schedule, request the Broker Guide.

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How it works

Construction complete, stock remaining

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

Residual stock loan settles senior debt

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

Sales campaign runs, loan repaid

With the senior 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 existing 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

This product is not suitable for:

•Active construction projects prior to practical completion - we do not fund construction risk
•Projects where the senior lender is not a bank, ADI, or ADI-like lender (for second mortgage scenarios)

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.