Navigating APRA's tightened standards: why non-bank development finance still wins
As APRA tightens the screws on bank lending, more developers are finding that the fastest, most flexible path to capital sits outside the majors. Here is why non-bank development finance remains attractive in the current environment.
What APRA's tightening means
The Australian Prudential Regulation Authority (APRA) regulates banks to protect financial stability. Its tighter lending standards have made the majors more cautious on higher-leverage development lending — leaving well-conceived projects underserved.
Why developers are turning to non-bank finance
- Speed — non-bank lenders can assess and decide far more directly than a bank credit committee.
- Flexibility — terms are structured around the project, with a mezzanine layer available behind senior debt where the numbers support it.
- Choice — senior debt, mezzanine finance and preferred equity can be combined to fit the deal.
The trade-off
Non-bank capital prices in the extra flexibility and speed, so rates are higher than a bank's. Developers should weigh the cost against the value of certainty and timing — often the difference between a project proceeding or stalling.
The Siare view
Siare's rigorous due diligence and active-management approach is built for exactly this environment — arranging tailored, risk-adjusted finance where the banks have stepped back. For developers with a sound project and a clear exit, non-bank finance is not a fallback; it is often the better tool.
Speak with Siare about structuring development finance in today's tighter market.
This is general information about business and investment-purpose finance only. It is not financial, legal or tax advice. All finance is subject to lender assessment, valuation and approval.