Before You Sign a Development Finance Offer, Pressure-Test These 3 Points
Most borrowers start by comparing headline rates. That is usually the wrong place to focus first. In development finance, projects tend to run into pressure because of timing, lender conditions and exit assumptions, not because one quote was 0.3% cheaper on paper. A facility can look competitive at term sheet stage and still become expensive if drawdowns are slow, surveyor sign-off is rigid, or the exit window is unrealistic. Three checks I'd make before signing: 1. Drawdown speed. Ask exactly what evidence is needed before each release and how quickly funds move once QS monitoring is complete. Cashflow gaps during the build are far more damaging than a slightly higher rate. 2. Contingency pressure. Work out whether interest is rolled up or serviced, what happens if build costs move, and how much breathing room exists before you need to inject more equity. 3. Exit realism. Stress-test the refinance or sale assumption against a slower market, not the best-case timeline in the appraisal. A strong project can still get squeezed by an optimistic exit date. Construction Capital has a practical breakdown of development finance guidance, lender expectations and common mistakes. For supporting updates and company context, see LinkedIn and Google Site. If you are reviewing a facility this week, pressure-test the timeline, not just the price. That single change usually leads to better decisions.
