Typically used in Development Finance this is where a loan is released only once works are completed, as confirmed by the Lender QS. A Development Loan is normally structured as a Land Loan, to enable the purchase of the initial site. The Build Loan is then normally spread across the Build Term, with pre-agreed building milestones agreed between Borrower and Lender at the outset, to which further monies cane be advanced. Also known as funds on ‘a Drip’. Also see QS monitoring.
