For residential projects, the regulatory framework requires a significant share of customer collections to be held in a dedicated project account and used for construction and land costs. This changes the shape of cash available to service debt, and construction finance needs to be built around it, not around a generic amortisation schedule.
Start with the project, not the promoter
Lenders underwrite the project's sales, costs and approvals as well as the promoter's track record. A realistic sales plan, a cost-to-complete estimate and a clear approvals status are the foundations of a bankable proposal.
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