Most developers measure capital by its rate. The more important measure is its opportunity cost: the return you give up by locking your equity into a single project instead of putting it to work across several.
If a project ties up most of your equity, you cannot start the next one. A structure that uses more debt and less of your cash, even at a higher rate, can leave you free to run two or three deals where you could only run one. The cheaper-rate, equity-heavy version often delivers the worse return on equity.
We model the cost of capital against return on equity, time and risk. On the right deal, higher leverage at a higher rate beats lower leverage at a lower rate, comfortably. That is the calculation that should drive a funding decision, not the headline rate alone.
Tell us about the project, the numbers, and the timeline. We will tell you honestly whether we can fund it and what the right structure looks like. Email loans@bottomlinefinance.com.au or send the form.
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