Builder Went Bust Finance
Access to a nationwide network of 200+ private lenders and specialist funding partners.
Helping developers connect with suitable private lenders for builder insolvency, builder walk-off situations and unfinished construction projects across Australia.
Is this your situation?
Builder went bust finance is often needed when a project is part-way through construction and the original builder can no longer complete the works.
Your builder has gone bust
The builder may have entered liquidation, stopped trading, become insolvent or can no longer complete the project.
The build is unfinished
The project may be at slab, frame, lock-up, fit-out, near completion or another incomplete stage.
Your bank will not advance more funds
The bank may not be comfortable funding without the original builder, a new contract or updated completion position.
Costs have increased
Replacing a builder can create extra costs, delays, site protection expenses and new completion funding requirements.
You need to refinance
An existing construction loan or private facility may need to be refinanced to buy time and complete the project.
You need a fast answer
Private lenders can provide an indicative response quickly once the core project information is available.
What is builder went bust finance?
Builder went bust finance is short-term private funding for a construction project affected by builder insolvency, site abandonment or builder failure.
Why this type of project becomes difficult
When a builder collapses, the project can lose its original construction contract, fixed-price cost base and bank-approved progress payment structure. That often makes standard bank funding difficult.
Where private lenders can help
Private lenders can assess the project based on the asset, current build stage, remaining works, updated cost-to-complete, loan-to-value position and exit strategy.
Builder insolvency remains a major issue in Australia.
According to ASIC’s 2023–24 annual insolvency statistics, the construction industry recorded 2,975 company insolvencies, representing 27% of all company insolvencies nationally. This has increased the number of projects requiring alternative funding solutions after builder failure, insolvency or site abandonment.
Why banks often stop funding after builder insolvency.
Traditional lenders usually rely on a stable builder, a building contract and controlled progress payments. When that breaks down, the loan can fall outside policy.
Banks commonly decline because of:
- Original builder has entered liquidation
- No replacement builder confirmed
- No updated fixed-price building contract
- Construction costs have increased
- Progress payment structure no longer fits policy
- Valuation or completion uncertainty
- The project is now considered higher risk
Private lenders approve based on:
- Current security value and completed value
- Current build stage and remaining works
- Updated cost-to-complete
- Loan-to-value position
- Replacement builder or completion plan
- Clear exit strategy
- Commercial assessment of the full scenario
Common builder insolvency funding scenarios.
These scenarios usually need fast private lender assessment rather than a full bank-style application process.
Builder Went Bust
Funding options where the original builder is insolvent, in liquidation or no longer trading.
Builder Walked Off Site
Private funding where the builder has abandoned the site or stopped attending the project.
Unfinished House
Funding for incomplete residential construction where extra capital is required to finish the build.
Incomplete Duplex
Private finance for duplex projects affected by builder failure or construction delays.
Townhouse Development
Project rescue funding for townhouse sites where construction has stalled due to builder issues.
Cost Overruns
Funding where replacing the builder has increased the total completion cost.
Construction Loan Refinance
Refinance options where the existing lender will not continue funding the project.
New Builder Required
Funding scenarios where a replacement builder or updated scope of works is being arranged.
Urgent Site Funding
Short-term funding where quick action is needed to protect the project and avoid further losses.
Projects private lenders can consider after builder failure.
Every lender has different appetite. The goal is to match the builder insolvency scenario with lenders that understand construction risk, security position and completion strategy.
Residential Homes
Funding for unfinished houses where the original builder can no longer complete the project.
Duplex Projects
Private lending options for duplex construction affected by builder insolvency or cost overruns.
Townhouses
Funding for townhouse developments where the builder has failed or walked off site.
Owner-Builder Projects
Funding where the borrower needs to take control of the project and manage completion.
Partially Completed Builds
Projects at slab, frame, lock-up, fit-out, abandoned or near-complete stage.
Multi-Unit Sites
Selected private lenders can consider multi-unit projects depending on valuation, GRV and exit.
Renovations
Major renovations and extensions where the builder has stopped before completion.
Development Projects
Small development projects where urgent project rescue funding is required.
What information helps private lenders assess the scenario?
You do not need a full bank-style application to make an initial enquiry, but builder failure scenarios need enough detail for lenders to understand the risk and completion pathway.
Property Address
The security address and basic property details help lenders understand location and asset type.
Current Build Stage
Slab, frame, lock-up, fit-out, near completion, abandoned site or another current stage.
Builder Status
Details of whether the builder has gone bust, entered liquidation, walked off site or stopped trading.
Loan Amount Required
The total funding required including payout, completion budget, interest, fees and buffer.
Value / GRV
Current and completed values help determine the possible loan-to-value position.
Exit Strategy
Sale, refinance, completion then refinance, stock sale or another clear repayment pathway.
Case study: project rescued after builder collapse.
A borrower was building a residential duplex when the builder entered liquidation at approximately 45% completion. The original bank would not release further progress payments until a replacement builder and updated costs were confirmed.
The site was exposed, trades were unpaid and the borrower needed urgent funding to stabilise the project, appoint a new builder and continue construction.
The scenario was introduced to a private lender that could assess the security, current stage, updated cost-to-complete and completed value.
A short-term private facility allowed the borrower to restart works, complete construction and exit through refinance after completion.
Case study: townhouse development rescued after builder liquidation.
A developer was constructing a four-townhouse project when the builder entered liquidation midway through construction. The bank suspended further progress payments until a replacement builder and revised construction budget could be approved.
The project was approximately 55% complete. Construction had stopped, holding costs were increasing, and several subcontractors remained unpaid.
The scenario was introduced to a private lender that assessed the current security value, remaining construction costs, updated feasibility and exit strategy.
Funding enabled a replacement builder to be appointed, construction recommenced, and the completed townhouses were sold, allowing the private facility to be repaid.
A simple process designed for fast scenario assessment.
The goal is to get your builder went bust scenario in front of suitable private lenders quickly and receive indicative funding options within 24 hours.
- Submit your scenario
- We match your deal with suitable private lenders
- A private lender will make contact
- Receive indicative funding options within 24 hours
Frequently asked questions about builder went bust finance.
Common questions from property owners, developers and owner-builders considering private funding after builder insolvency or site abandonment.
Can I get finance if my builder has gone bust?
Yes. Private lenders can consider funding where a builder has gone bust, entered liquidation, stopped trading or walked off site, provided the security, project stage, cost-to-complete and exit strategy are acceptable.
What does builder went bust finance mean?
Builder went bust finance is short-term private funding used to refinance, stabilise or complete a construction project after the original builder can no longer continue.
Can private lenders fund an unfinished house after builder insolvency?
Yes. Some private lenders can consider unfinished houses and incomplete builds after builder insolvency where there is enough equity, a clear completion plan and a practical exit strategy.
Can I borrow money to appoint a new builder?
Yes. Funding may be available to help pay a replacement builder, complete remaining works, cover urgent site costs or refinance an existing loan, subject to lender approval.
Can I refinance my construction loan after my builder collapses?
Yes. Existing construction loans can sometimes be refinanced into a short-term private facility where the current lender will not provide further funding or the project no longer fits bank policy.
What information do private lenders need?
Useful information includes the property address, current build stage, photos, loan amount required, existing debt, estimated completed value, cost-to-complete, builder status and exit strategy.
Do I need a new building contract?
A new building contract or updated scope of works can help. Some lenders may also consider other evidence of remaining works, quotes or cost-to-complete estimates.
Can owner-builders get funding after a builder goes bust?
Yes. Owner-builders and project owners may be considered where the project details, permit position, remaining works and exit strategy are clear.
Can I get funding for construction cost overruns caused by builder failure?
Yes. Private lenders can consider cost overrun funding where builder failure has created additional completion costs, delays or urgent site expenses.
How fast can a builder went bust scenario be assessed?
Indicative responses can be obtained within 24hrs where the borrower provides the address, loan amount, project stage, current debt, value estimate, cost-to-complete and exit strategy.
What exit strategies can work?
Common exit strategies include sale of the completed property, refinance to a bank after completion, refinance to another lender, or sale of other real estate.
Who contacts me after I submit the scenario?
Once the scenario is reviewed and matched with suitable lending partners, a private lender or their representative can contact you directly to confirm requirements, structure and next steps.
Related development finance scenarios.
Every development project is different. Explore other private development finance scenarios that may also match your situation.
Funding Problems
Construction & Development
Land, Planning & Civil Works
Need funding after your builder went bust?
Submit the key details of the property, current build stage, builder status, loan amount, cost-to-complete and exit strategy so the scenario can be matched with suitable private lenders.
Submit your builder went bust scenario.
Send through the key details of the property, builder status, project stage, loan amount, cost-to-complete and exit strategy.