In property development, finance timing can change the project outcome in a big way. One of the most important decisions is about developer exit finance. But many developers do not give this step enough attention early. They wait until the project is nearly done. This delay looks small in the beginning, but later it may cause serious trouble in both time and money.
Exit finance is not only for paying off the main construction loan. It also helps the developer manage cash flow and plan for the next step. It gives the choice to hold the asset longer, sell slowly, or change to a long-term investment. But if the developer waits too long to look for this type of finance, then the choices become less. Lenders also notice when someone comes late. They ask more questions and give stricter terms.
Sometimes, developers think that finishing the build is enough. They believe lenders will be happy once the project is complete. But this is not true all the time. Lenders still look at risk. If the properties are not sold or no rental income is showing, then the project is still seen as risky. If developer has no exit plan in place, the loan offers might come with high cost or tight conditions. These may reduce the profit, especially if other costs were already more than expected.
Another issue is deal strength. If a developer goes to the lender very late, there is less power to negotiate. Lenders see the urgency and may offer less friendly terms. But if the developer speaks to the lender early, then there is time to compare offers, and better terms may be found. Early action gives more control.
At the end of a project, teams are busy with handover, marketing, and tenant or buyer planning. If exit finance is not ready by then, time is lost in rushing to find money. This change in focus can lead to mistakes or lower delivery quality. It can affect how the final product is seen by buyers or tenants. That is not good for the developer’s name.
Developers who plan early can avoid this. They can ask lenders for ideas even while the project is still going. They can learn about exit products and get sample offers. This helps to prepare. It also helps to test different plans, like selling fast or holding the asset. The cash flow plan becomes clearer.
Waiting too long to plan exit finance brings many risks. It not only takes away the options but adds pressure, and may cut profits. Good developers think about developer exit finance from the start. They understand that this is not just about paying off the first loan. It is about having choice and control at the end. Tools like part complete bridging finance can help, but only if the developer knows about them early. In today’s fast market, planning early is not just good practice but it is a must.
