Whilst keeping a smaller interest reserve might artificially boost the Day 1 advance, it puts cash-strapped borrowers under increased pressure and carries the risk of default and additional costs.
In a piece in Development Finance Today last week, our CEO Yann Murciano explains why borrowers need loans that are fit for purpose and robust facilities that aren't going to create issues for them down the line, especially in the current testing market environment. Yann argues that borrowers need to make sure that their facility has a decent cushion built-in in the form of interest reserve in order to avoid having to pay extra fees at the back end if things don’t go according to plan.
Read the full piece in the link below.
Whatever you are up to in 2023, we are here to support you with your development schemes. Whether you've heard of us but we’ve never spoken with you and you’re exploring your options, or whether you’re feeling positive that now is the right time to proceed with a project and want to ensure you have the capital to opportunistically do this, feel free to get in touch and we’ll see if we can help.
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