Net proceeds
Face loan amount less withheld reserves, fees and required payoffs.
What is actually available at closing and during the project?Read the offer.
Then read the obligations.
A practical guide to comparing financing alternatives on a common basis.
The comparison frameworkA common basis.
A common basis.
A clearer choice.
Preserve differences that matter. An attractive headline rate does not resolve the proceeds, obligations or timing questions.
Debt service
Rate, index, spread, floors, payment basis and amortization.
What changes the payment, and when?Recourse
Guarantees, carve-outs and any release conditions.
Who carries which obligations?Flexibility
Prepayment, extension options, release prices and consent rights.
Does the financing accommodate the business plan?Execution
Conditions, third-party reports, deposits and the closing sequence.
What must be satisfied before funding?Ongoing requirements
Reporting, covenants, reserves, draws and testing dates.
What will ownership need to maintain after closing?Your next moveHave terms
Have terms
to work through?
Bring the alternatives and the project requirements. The comparison should explain the tradeoffs.
Discuss your financing alternatives