Subordinated Debt Finance
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What is Subordinated Debt Finance?
Subordinated Debt Development Finance is a type of finance which is used primarily in property development.
This type of finance bridges the gap between senior debt, typically provided by most banks or traditional lenders, and the equity the developer needs to fund a project.
The finance is termed "subordinated" because this debt has a lower priority for repayment in case of default. Which sits below the senior debt in the capital contributed.
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