Use Finance to add lenders, set interest assumptions and include lender fees.

Add a lender

  1. Select Add A Lender.
  2. Enter the lender's name.
  3. Set the loan as a percentage of gross development value (GDV) or total costs.

Choose the loan and interest calculation

Under Type of Loan, choose interest on drawn balance, interest on the full loan amount, or profit share. Interest on drawn balance applies to the funds being used rather than the entire facility.

Set the rate on an annual or monthly basis. Under Calculation, choose Estimated, Override or Cashflow. The estimated method uses a simulated construction S-curve over the selected term; the cash-flow method uses the timing entered in your cash-flow forecast.

Choose how interest is paid

  • Retained: part of the facility is reserved for interest, reducing the amount available for project expenditure.
  • Rolled-up: interest accrues during the project and is paid from sales proceeds at the end.
  • Serviced: interest is paid during the project and needs to be covered by developer equity.

Include lender fees

Enter commitment and exit fees as fixed amounts or percentages of the gross loan or GDV. Review how each fee is funded. Read How to handle finance fees for the different treatment of fees paid from equity, sales proceeds or the loan.

Minimize a lender's panel to review the finance cost, total borrowing and developer equity in its summary.

Arrange multiple lenders

Add further lenders where needed. Use the up and down arrows beside a lender to reorder the finance stack. Funding at the bottom is drawn first, followed by funding above it. Review the resulting cash flow.

Forward funding

  1. Open Forward funding in the Finance section.
  2. Review the elements populated from Revenue and Build.
  3. Select any elements you need to exclude from the main financing calculation.
  4. Return to Finance to review the facilities and equity for the remaining elements, and the separate forward-funding entry in the summary.

Video walkthrough

If you need help with your project, email support@aprao.com.