Pre-Development Finance: Bridging the Funding Gap before Construction
Securing capital for land acquisition, feasibility studies and design work can stall even the most promising project. Traditional lenders often require construction-ready permits or equity sweats before they release funds. Pre-development finance
steps in to cover early costs—unlocking progress on zoning approvals, environmental reports and engineering plans so ground never stays idle.
The Pre-Development Funding Challenge
Lenders view the pre-construction phase as higher risk: no cash flows, complex approvals and uncertain timelines. Developers end up using personal guarantees or private equity at steep rates, draining their balance sheet before shovels hit dirt. That opportunity cost can make or break a project’s bankability once construction finance comes into view.
Structured Solutions for Early-Stage Capital
- Short-Term Advances:
Facilities sized to cover design, permitting and soft costs over 6–18 months.
- Milestone Disbursements:
Funds released upon permit approvals, survey completion or procurement milestones.
- Asset-Based Security:
Pledge of entitled land, development rights or future construction reserves as collateral.
- Mezzanine Top-Ups:
Subordinated tranches that layer beneath senior pre-dev debt to fill capital gaps.
Financely’s Proprietary Underwriting & Network
Our credit teams assess planning risk, local market absorption, and sponsor track record within days. We structure pre-development loans from $3 million to $50 million—pairing senior term debt with optional mezzanine slices. Collateral packages are perfected via land charge filings or development escrow accounts. Once terms align, we tap our lender network spanning private credit funds, family offices and specialty finance arms to deliver commitments in 4–6 weeks.
Key Benefits & Use Cases
- Faster Groundbreaking:
Secure design and permitting capital so construction financing doesn’t stall.
- Optimized Equity:
Preserve sponsor equity for later phases, improving returns on cost.
- Flexible Tenors:
Align loan periods with project approval timelines, avoiding reset risks.
- Clear Transition:
Seamless conversion from pre-development to construction finance with no refinance penalty.
How to Access Pre-Development Finance
- Initial Submission:
Provide development concept, zoning status and sponsor resume; get indicative terms in 3 business days.
- Due Diligence:
Complete detailed market study, cost estimates and title checks; finalize structure.
- Commitment & Docs:
Sign facility agreement and collateral deed; perfect security.
- Draw & Advance:
Fund design, permitting and soft cost invoices per agreed milestones.
Financely offers full-scope underwriting, asset-based lending solutions and global distribution for pre-development finance. From entitlement advances to survey credits, our platform bridges funding gaps so your project moves from blueprint to breaking ground. Submit your proposal today to unlock tailored pre-development capital.
Request Pre-Development Funding