As responsible and risk-averse lenders, we don’t necessarily lend all the funds to borrowers in one go. 

For development loans, borrower funds are sometimes released in smaller amounts known as ‘tranches’. 

Tranches are installed to protect investor money and ensure funds are effectively deployed at key stages of the development. Borrowers are subject to regular on-site assessments to ensure funds are being used correctly and the project remains on time and on budget. In some instances, we expect the borrower to have pre-sold some of the properties in order for funds to be released.

All development projects are subject to monthly reporting from our external monitoring surveyors. We only release construction funds once the agreed works have been completed.