Sometimes known as sales period loans, developer exit finance, or finish and exit finance, this type of development financing helps developers to refinance and continue their projects when they have run out of either funds or time to complete their plans.

When the development is nearing completion, development exit finance can help to repay existing loans with another, smaller loan – as the project is almost finished, there is less risk for the lender, so the loan should be available with a lower rate. Like a bridging loan, these funds can be used to settle outstanding costs, release equity, or borrow more to advance to another development.

These are short-term loans that are usually repaid within 12 months or less, often with reduced interest and without exit fees for paying early, helping to improve cashflow.

Development exit loans will be based on the current value of the part-completed project, and applications will require updated details on current loans, the schedule of remaining works, and details of marketing and exit strategies.

Our team could help you find the right development exit finance for your project – contact ABC+ Architects Certificate to make an enquiry.

While development finance offers a larger source of funding for the entire project, it can be more expensive – so switching to development exit finance offers a cheaper alternative when the bulk of the project has already been completed.

Whether the project has run over budget or schedule or the original loan term is about to expire, developer exit finance can be beneficial in extending the sales period to allow you to finish the project to the most marketable standard and secure the best possible sales price – and some lenders allow developers to retain a portion of the first sale proceeds to help with cashflow management.

Additionally, if current finance costs are too high, development exit finance provides a way to reduce borrowing costs with lower rates, which helps to protect your margins when sales are slow. It also provides a route to release capital that allows you to move on to your next development before the current project is completed and sold, so you can stay on schedule as closely as possible.

After all, construction projects do not always go to plan, and developers may find themselves needing a quick finance solution to stay on track. If this applies to you, get in touch with ABC+ Architects Certificate to discuss exit finance options today.

The eligibility criteria for developer exit loans can vary depending on the type of property, client, and project circumstances. Generally, any individual, partnership, limited company, offshore company, or trust can apply for development exit finance.

You do not need to be an experienced developer to apply, but lenders will take into account the amount you want to borrow, the development type and location, and the reasons for needing exit finance. You will be expected to provide details of the:

• Borrower – whether it is an individual or company (including directors and shareholders)
• Security – the value and nature of the security being provided
• Schedule – breaking down the outstanding works and costs
• Documentation – e.g. planning permission, warranties, practical completion certificates
• Current finance – terms and conditions of existing development finance

Usually, properties in progress must have been completed at least to the stage of being wind and watertight to be accepted.

Every development project differs, but if you want to secure a development exit loan as an exit strategy for current financing and to boost your project funds, you can reach out to us at ABC+ Architects Certificate. We can help you decide which development exit finance option is best for your particular situation and assist with the application to achieve a swift solution.