Construction Financing

A structured financing framework that manages project funds through a dedicated account, with continuous financial and construction oversight throughout every stage of development.

Construction financing provides developers with a structured financing framework in which all project funding sources — including developer equity, construction credit facilities and proceeds from unit sales — as well as project expenses, are managed through a dedicated project account.

Deposits and withdrawals are made in accordance with the terms of the financing agreement and are supported by ongoing financial and construction monitoring of the project’s progress. This structure ensures that sufficient financial resources are allocated to the project, while providing continuous oversight of construction progress, cash flows and the overall financing framework.

Beyond financial control, construction financing creates a foundation for an ongoing professional partnership between the developer and the lender, enabling informed decisions and effective responses as the project progresses and when unexpected challenges arise.

The Financing Process

Underwriting and structuring: We assess the project’s financial, planning, and regulatory profile, and secure committee approval from both our own firm and our institutional partner. We then build the full financing package, including senior debt, landowner loans for combination deals (when the landowner contributes land to the developer in exchange for a share of the completed units), sales policies issued under Israeli Sale Law, and performance guarantees.

Project account management: All project proceeds and financing sources are held in a dedicated escrow account, with draws made against approved milestones.

Financial and construction oversight: We appoint a dedicated inspecting engineer who checks progress on the ground and approves draws at every stage. With  pace, budget, and timeline continuously monitored, issues are identified before they can escalate.

Release of remaining proceeds: At completion, or at pre-agreed milestones, any remaining project proceeds are released to the developer.

Benefits of Construction Financing

Construction financing delivers practical benefits for developers, buyers, and contractors. Without it, the required sales policies and performance guarantees cannot be issued, and the project is exposed to real liquidity risk.

Developers get a financing framework that keeps the project moving, with full visibility into the credit facility balance at every stage.

Buyers know that their funds are held securely in a dedicated project account, backed by sales policies and performance guarantees.

Contractors see a controlled payment framework they can rely on.

Why Ruby Finance?

At Ruby Finance, we specialize in transactions with complex ownership and legal structures: urban renewal projects, landowner loans for combination deals , and purchase groups. These deals demand more than financial analysis. They require a deep understanding of ownership rights, landowner agreements, and the permitting timelines that shape every stage of a project.

As an independent non-bank lender working in close partnership with Israel’s leading institutional investors, we give developers access to significant credit capacity, faster credit decisions, and financing structures built around the specific needs of each project.

Regulation and Oversight

All Ruby Capital Group companies are licensed by the Israel Capital Markets, Insurance and Savings Authority and operate in full compliance with all applicable regulatory requirements. All financing is underwritten to bank-grade standards, with sales policies  and performance guarantees issued in partnership with Israel’s leading insurance companies.

As of Q1 2026, Ruby Finance manages approximately NIS 35 billion in credit facilities across some 200 projects, supporting over 15,000 housing units in more than 30 municipalities throughout Israel.