Pre-Permit Financing

Financing the stage before standard construction financing collateral can be established, enabling developers to advance planning, permitting and project enhancement before a building permit is obtained and closed construction financing begins.

In many real estate projects, there is a significant time gap between the point at which a developer begins investing resources in advancing the project and the point at which a closed construction financing framework can be established. Early-stage development expenses, including planning consultants, architects, professional advisers, attorneys, fees and permitting processes, can accumulate to significant amounts over an extended period, well before a building permit is obtained and construction financing begins.

Ruby Finance’s pre-permit financing is designed to bridge this gap, enabling developers to advance planning, permitting and project enhancement without tying up all of their equity in a single project at a stage when there is no sales cash flow or project income.

Collateral Structure

Where a mortgage over the project property cannot yet be established, we structure an alternative collateral package tailored to the developer’s overall profile and the characteristics of the project. Collateral may include pledges over surplus proceeds from the developer’s other active projects, security interests over contractual rights, corporate guarantees and personal guarantees.

Each case is assessed individually, with the collateral structure determined according to the developer’s financial profile, scale of operations and the characteristics of the project. This flexibility reflects Ruby Finance’s approach to financing: applying financial creativity to structure solutions in situations where conventional financing may not yet be available.

Pre-permit financing is subject to credit committee approval following an assessment of project feasibility, the expected permitting timeline, the required collateral and repayment capacity.

A key advantage of pre-permit financing through Ruby Finance is the continuity it provides through to the closed construction financing stage. The project is assessed from an early stage by the same financing team that can accompany it through construction. Knowledge of the contractual structure, landowners and project timeline is built from the outset, allowing for a more seamless transition into the closed construction financing framework.