Build a new business facility
The operating company needs to cover construction-period costs and later support the permanent property debt.
BORROWING NEED
Construction
Your project needs financing aligned with its budget, schedule, and completion plan. Address construction funding requirements early so avoidable financing issues do not hold up the work.
Understanding construction
Construction financing pays for a project as work progresses. Unlike a completed-property mortgage, the lender must evaluate the budget, contractor, schedule, borrower equity, draw controls, and how the loan will be repaid after completion.
An owner-occupied expansion and an investor development may have very different repayment paths. The financing request should make the project economics and the permanent financing or sale plan clear from the beginning.
When this need comes up
Renovate or expand an existing building
The budget and schedule should account for business disruption, unexpected work, and when added capacity becomes usable.
Develop an investment property
Lease-up assumptions, tenant commitments, and the takeout plan shape how the project is underwritten.
How financing may be structured
The right structure depends on how long the need lasts, when cash returns, and what the borrower can support.
Construction loan
Funds are typically advanced against approved work. Draw procedures, inspections, interest carry, and contingency terms matter.
Construction-to-permanent loan
May combine building and longer-term financing, subject to completion and conversion conditions.
Bridge or predevelopment capital
May address an early project stage, but its maturity and exit require careful review.
What lenders will want to understand
Expect a review of sources and uses, equity, contractor qualifications, plans and permits, cost-to-complete, contingency, appraisal, projected income, and the ability to carry the loan through delays.
- Budget, contingency and contractor capacity
- Borrower equity and as-completed value
- Lease-up, stabilized cash flow or takeout plan
Questions to address early
Cost overruns exceed contingency
A financing plan needs to show who funds a shortfall and how the project reaches completion.
Permits or draws delay the schedule
A delay can increase interest carry and push back the date when the project begins generating cash.
Takeout depends on perfect lease-up
The permanent loan or sale plan should be tested under realistic occupancy and value assumptions.
Documents to start the discussion
Plans, contractor agreement, detailed budget, draw schedule, permits, appraisal information, lease or occupancy assumptions, and evidence of equity are central to the initial discussion.
- Plans, permits and contractor agreement
- Detailed sources and uses, draw schedule and contingency
- Appraisal, environmental and title information
The final checklist depends on the lender, transaction, and requested structure.
How Alliance helps
A delayed draw or budget gap can disrupt work on site. Alliance tests the budget, contingency, draw schedule, sponsor cash, and takeout plan before presenting the project to a construction lender.
We compare sources suited to the project and explain advance conditions and conversion terms. You get a clearer view of the funding schedule and support resolving lender questions as work moves forward.
Explore potential financing sources
A source is worth comparing only when its underwriting approach, terms, and obligations fit the specific request.
Conventional Bank Financing
Banks typically pair a financing request with a full review of cash flow, collateral, liquidity and the guarantor. Terms depend on the transaction and the lender.
Explore ↗Government-Guaranteed Financing
A government guarantee can help a participating lender support a transaction that needs a different risk structure. The lender still underwrites the request, and program rules change.
Explore ↗Private Market Debt
Non-bank lenders may underwrite a transaction with a different view of collateral, cash flow, speed or a defined transition plan.
Explore ↗Related borrowing needs
Commercial Real Estate
A property opportunity or approaching maturity brings deadlines you cannot ignore. Explore financing for commercial property purchases, refinancing, improvements, and investment plans.
Explore ↗Expansion & Growth
New contracts, locations, and customers bring opportunity, but expenses often arrive before revenue. Explore growth financing built around the cash your expansion needs.
Explore ↗LET’S TALK
Talk through your construction need.
Tell Alliance what you want to accomplish, the amount and timing, and what has made the request difficult. We will discuss possible next steps.