Understanding Residual Stock Finance and Its Benefits for Property Developers
Residual Stock Finance
Residual stock finance is a type of financing that is specifically designed for property developers who are looking to refinance unsold completed projects. With residual stock finance, property developers can unlock equity tied up in their completed projects and get the funding they need to move on to their next project.
One of the biggest benefits of residual stock finance is that it provides developers with greater flexibility. Unlike traditional loans that require a specific amount of principal and interest repayments each month, residual stock finance allows developers to defer interest payments until the property is sold.
Another benefit is that developers can access up to 70% of the value of their unsold stock. This can help them cover any remaining costs associated with the development, such as marketing and advertising expenses, while also providing them with the capital needed to move onto their next project.
At MFEG, we understand the challenges that property developers face when it comes to securing financing. Our residual stock finance solutions are tailored to meet the specific needs of developers and provide them with the capital they need to succeed. Contact us today to learn more