Does your capital stack include mezzanine funding? Do you have investors with an IRR target return? Would earlier repayment of higher cost finance improve your own profit return? Do you need capital for your next project or for working capital?
Experienced, confident and flexible development lenders will often allow funds to be released from sales for these and other purposes. But how do you know whether your chosen lender will do this, especially as an upfront, binding commitment included in a facility letter is a tricky point to negotiate?
Hallcroft’s experience with the development funding market has provided insight into which lenders can be expected to show this flexibility. The right choice of lender at the beginning can bring major benefits as a project progresses.
Hallcroft recently arranged a capital release from the fifth sale of a nine-unit scheme to repay part of a mezzanine loan, reducing the interest cost to the project dramatically.
So, just how flexible is YOUR funder?