What is development exit finance?
Development Exit Finance is a form of bridging loan and so will be setup for a short term basis only.
Once your development project is close to practical completion, or is wind and watertight, you have the opportunity to refinance your original developer loan with developer exit finance.
By refinancing you can lower your borrowing costs by securing a lower interest rate loan and you may also have access to further funds by borrowing against the current valuation. Once your project is weather proof or largely completed, a major part of the risk taken by the initial lender will have reduced.
To aid cashflow, the developer exit loan can be set up with interest roll up, so that all payments are made at the end of the term.
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