Inventory Funding
Inventory funding provides financial support to real estate developers to manage unsold inventory of completed or near-completion projects. This type of funding ensures liquidity, helping developers cover operational expenses, service existing loans, and invest in new projects while awaiting sales.
Benefits & Features
Enhanced Liquidity
Unlocks capital tied up in unsold properties, ensuring smooth cash flow.
Loan Against Property (LAP)
Developers can pledge completed units as collateral for funding.
Flexible Repayment Options
Structured repayment based on future cash flow from sales.
Competitive Interest Rates
Offered at rates lower than unsecured loans, depending on the property’s valuation and market demand.
Eligibility Criteria
Reputed Developers
Must have a strong track record in real estate development.
Property Valuation
Marketable property with a clear title and good sales potential.
Financial Stability
The developer must demonstrate the ability to service the loan through projected sales revenue.
FAqs
What types of properties qualify for inventory funding?
Completed or near-completed residential and commercial units with marketable titles.
How is the loan amount determined?
Based on the property’s market value, sales projections, and developer's financial health.
What is the repayment tenure?
Typically ranges from 12 months to 5 years, depending on the lender and agreement terms.
