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When a developer finishes the main construction part of a project, they need a new type of funding to replace the old one. This is called developer exit finance. It helps to repay the first loan and gives more time to sell the property or move into a longer-term mortgage. But many developers do not look at some deeper things when choosing a lender. They may focus too much on just getting the funds quickly, and forget to check if the lender is right for the project needs at this stage.

Many times, a developer looks only at the cost of the finance, like the interest rate. This is important, but not the only thing. Sometimes, a lender gives a good rate but does not have experience with real estate exit finance. They might not understand how the development reached this stage. If the lender does not know the full construction process or how to manage issues like partial build completion or units not yet sold, this can create problems. They may delay the funding or put in terms that are not good for the developer.

One important part is how the lender deals with construction finance history. Some projects have delays or changes. A good exit finance lender should understand this. They need to look at the project with a flexible view, not with strict rules that work only for simple cases. If the project still has works going on, like small repairs or unsold units, the lender should still be ready to support. If the lender does not show this kind of understanding, the deal may break later, even after the terms are agreed.

Another thing is the asset type. Not all lenders are good for every kind of property. Some understand residential flats better. Others may be stronger in commercial or mixed-use buildings. The developer must ask the lender if they have done similar projects. It is risky to work with a lender who does not have experience in the same asset type. 

Sometimes, developers use exit finance to hold the property longer if the market is slow. They do not want to sell fast at low prices. In this case, the lender must give support not only for the refinance but also for the asset holding period. Some lenders allow interest roll-up or step-down rate when income grows. These flexible options help the developer manage cash flow better. A lender who thinks only about the short term will not be helpful in these kinds of deals.

Timing also causes stress if not managed well. Many developers think that if the deal is agreed in principle, the money will come fast. But exit finance deals can take time because of legal checks, title issues, or discharge of old charges. If the lender is slow in document process or needs too much paperwork, it may delay the refinance. A good lender for this stage should have fast legal process and clear checklist. This helps to avoid last-minute problems.