The door to short-term loans is always open
ASAP Finance is a boon to property developers and investors
Venkat Raman
If you are in need of money urgently to complete your building or a property, and your bank has shown you the door, do not despair- that is neither the end of your project nor the world.
There are other lenders with a heart, who can, and will help.
The apathy of commercial banks towards the construction and property development sector is a major source of worry for builders and investors but fortunately, there are second-tier institutions with a proper vision and objective.
Common sense approach
Their pragmatic and common sense approach are beginning to attract the attention of businesses, investors and property developers.
A leader among them is the Auckland based ASAP Finance Limited.
With more than $2 billion lent since its establishment in 2004, the company is today evincing the interest of businesses that are frustrated by the nonchalance of commercial banks to extend credit, especially for short periods.
As a family-owned Company, ASAP Finance has at its core the tenets of honesty, integrity, accountability and transparency and good governance values. Its aim is not only to provide short-term finance to those in need but also be a responsible lender.
Client assessment, due diligence and compliance are at the core of its operations.
Lender of Choice
Client Services Director Parash Sarma said that the primary objective of the Company is to be the Lender of Choice to the construction and property development sector.
“Banks have a low appetite for construction and property development and their set of criteria can be cumbersome and often disqualify for loans. ASAP Finance fills that space with short-term loans to builders and developers,” he said.
As well as living up to its name, ASAP makes the lending process as simple as possible, without compromising the regulatory requirements and its own principles of market exposure. Instead of treating companies and people just as customers, ASAP officials consider themselves as partners in progress.
“At ASAP, we do not normally insist on documents such as Valuation and Quantity Surveying Reports and evaluate each application on its merits and the propensity of borrowers to meet their obligations as per schedule. We enter as banks walk away from people who may be in genuine need of money to complete their projects. We look for financially viable construction and development projects and look after those in need,” Mr Sarma said.
If the project is right and the borrower has a genuine need, the loan amount can be made available quickly- usually within a day.
No pre-set conditions
Mr Sarma said that the Company does not insist on conditions that are normally employed by commercial banks.
“We can also do away with pre-sales, fixed price contracts and progress valuation reports. Being an asset lender, our emphasis is on the value of the Project and equity contributed by the client rather than income or servicing calculations,” he said.
There are of course basic requirements that the Company will still require.
ASAP covers the gamut of the building and property market, extending credit to a single house build, small subdivisions, larger brownfield or greenfield subdivisions and huge construction projects.
“No project is small or big for us. ASAP Finance has been involved with projects that are as small as $200,000 and as large as $30 million. We have been associated with many successful developments across New Zealand, including Flemington, Verdeco Park and Ravenswood in Christchurch; Eton Estate and Teafields in Hamilton and several land subdivision projects in Auckland in Albany, Silverdale, Hobsonville, Flat Bush and Takanini. Our key markets include all the major cities and towns, especially Auckland, Wellington, Christchurch, Hamilton and Tauranga,” Mr Sarma said.
He said that ASAP is committed to making a difference in the community.
“We sponsor a number of causes that are aligned to our vision of building a better future that can be shared by all. Among the charities supported by ASAP are the Friends of Fiji Health Foundation, Friends of Fiji Heart Foundation and the Keystone Trust,” he said.
