Stretch Senior Construction Debt

What is stretch senior construction debt?

You may have heard of stretch senior construction debt, or perhaps know it as stretch business lending or stretch finance. It simply means the lender will look to lend to a higher than standard LVR (loan to valuation ratio).

Stretch finance is used for development purposes. Senior stretch loans “stretch” to accommodate the financing needs of the borrower, but at a higher risk to the lender than a conventional senior loan.

For the borrower, the senior stretch loan provides speed and convenience. The borrower does not have to work with two different parties (a senior and junior lender) to have more of their development funded.

Our stretch senior development finance provides significantly higher loan to value ratio’s than traditional senior debt on a first mortgage basis with no mezzanine facility – effectively covering what a senior and mezzanine combination previously achieved.

Stretch is exit strategy based with repayment generally coming from the sale of residential development projects.

About Financing

Your equity goes further with stretch finance


From a developer’s perspective, equity can be spread over a greater number of projects. Stretch business lending provides more funding and thus requires less equity on each project, significantly increasing your ROI.


For example:

Traditionally lent senior debt might sit at a maximum LVR of 65%, using stretch finance, we may be able to “stretch” that LVR to 75%. This frees up equity for use in other projects.


Stretch is applied for at the start of the project and a feasibility study will be required to ascertain the projects requirements.

What types of property development can I use stretch finance for?


  • residential development
  • commercial development
  • industrial development
  • student accommodation
  • hotel development
  • nursing homes

When would you seek stretched senior debt?


Experienced property developers with a solid track-record of producing:


  • residential developments with strong pre-sales
  • commercial buildings with leases in place pending completion
  • a well-defined exit-strategy should consider stretch business lending as a part of their overall funding requirements

Talk to us about the best finance solution for your situation. We’re here to help.

Don’t be afraid to chase your dreams; let us find the solution to fund your project so you can make your mark!

Why Choose IBN?

At IBN, we work closely with our panel of Funders, to move quickly on your loan application. We understand that ‘time is money’ and we make the loan process as seamless as possible. Our experienced staff assist you every step of the way with frequent communication on the loan progress.

We present options that others didn’t know existed

We search for solutions and enjoy the challenge of complex loans

We understand the complexities and requirements for a commercial loan application.

We explain our cost-structure from the outset so that you know what to expect.

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