Typically used in Development Finance. Lenders have to make a number of assumptions when pricing a Development Loan, which means the estimated total cost of the Loan will never match the total Interest paid at the end of the project. One such assumption is that the Build Costs will spread evenly over the Build Term, and the Borrower will draw funds each month to cover those costs. This would never happen in reality, therefore it is important to provide a Cashflow to more accurately project your borrowing costs.
