Fund the path to completion
A proposed facility should be compared with the total funding required to complete the project, including costs that arise before sales proceeds are available. The assessment depends on realistic assumptions and supporting information.
Know how drawdowns work
Drawdown conditions affect cash availability. The borrower should understand the progress evidence, specialist reports and other documents needed before each release.
Allow for changes in cost and timing
A delay can increase holding costs and interest while postponing revenue. The funding discussion should address how changes in cost, time and sales affect the capacity to complete.
Think beyond practical completion
Completion is another decision point. Sales, settlement and residual stock arrangements determine how development debt is repaid. Planning that stage early can reveal issues while there is still time to address them.
- Match the funding structure with project expenditure.
- Understand drawdown requirements before funds are needed.
- Consider sales and repayment before completion.
This perspective is general information. Consider the relevant documents and your circumstances before making an investment or finance decision.