How construction finance works
A construction facility is sanctioned against the project and released in stages as construction moves forward. Lenders look at approvals and title, the promoter's track record, the cost to complete, projected sales and collections, and the security on offer. Repayment usually comes from sales receipts, so the facility has to match how and when the project will sell.
What we do
- Read the requirement early. We assess feasibility just like a lender, often in the first conversation, and give you a clear go / no-go.
- Size the facility. We size it to the project's cash flows, not just to the cost sheet.
- Choose the lender. We know which lenders are active in construction finance right now, and whose credit criteria a given project will pass.
- Frame the proposal. We present the project the way the lender's credit team needs to see it, so the path to repayment is clear.
- Run the course. We stay in the detail through documentation, drawdown till loan closure.
When construction finance is not enough on its own
Some projects need more than one instrument: land funding before construction, structured debt for a gap, or inventory funding once units are complete. We look at the whole funding plan, so the construction facility fits with what comes before and after it. See Project finance advisory.
Why developers work with Raintree
We are ex-bankers with over three decades of combined experience in corporate credit and real estate. Lenders prioritise our proposal as it comes pre-filtered, which reduces turnaround time. Our fee is success-based: we invoice only on disbursement. Everything you share with us stays confidential.
Common questions
The promoter's track record, approvals and clear title, then the numbers: cost to complete, projected sales and collections, and the security on offer. The lender needs to see a clear, well-documented path to repayment.
No. It is drawn down in stages against construction progress, so the developer pays interest only on what has been drawn.
Yes. Lenders weigh the project and the structure, not borrowing history alone. A sound project can raise funds when the requirement is framed to fit the lender's credit criteria.
Our fee is success-based. We invoice only once your facility is disbursed. If the transaction does not close, you pay us nothing.
More questions? Read our funding FAQ.