Construction is complete, but some purchasers haven't closed. Meanwhile the construction lender expects repayment, carrying costs continue, and capital meant for the next project stays tied up. For a builder or developer, that can become a financing problem even when there's value in the completed inventory. Inventory financing may provide a way to address it.
What inventory financing does
It's secured against eligible unsold or unclosed units. Depending on the project and approved structure, it may repay or reduce construction financing and provide time to sell or close the remaining inventory. Where sufficient equity exists and the lender permits, it may also release capital for other obligations. Available proceeds depend on the lender's valuation, existing debt, costs and required reserves — the total value of the inventory isn't the same as cash available to withdraw.
What makes a request workable
A lender needs a clear view of the security and the repayment plan: construction and registration status, remaining inventory, existing financing, sales information and expected timing. Purchaser contracts and failed closings also need to be understood, and if units sell over time, the structure must account for how they're released from the lender's security.
The exit matters as much as the advance
Inventory financing needs a credible repayment strategy — completed sales, revised pricing, refinancing or an acceptable rental strategy. The assumptions need to be realistic, including time and costs. The earlier the review starts, the more room there is to structure before a maturity becomes urgent.
Contact CD Mortgages with your inventory schedule, existing loan balance, maturity date and project status.