In UK property development finance, the first drawdown percentage of the total loan is the initial portion of the agreed finance released to the borrower at the start of the project. This upfront fund typically covers early expenses such as land purchase, planning, and initial construction works. It is calculated as (first drawdown ÷ total loan) × 100. This figure is key to managing project cash flow and balancing risk between lenders and developers, ensuring enough capital is available without overexposure. Proper structuring of this drawdown safeguards financial stability throughout the development.
This sits beneath Drawdown Structure & Phasing, introducing a more specific variant of the measure without changing its core interpretation. It is commonly considered alongside Last Drawdown Percentage of Total Loan, as both are closely related measures used to assess similar aspects of performance or risk. In funding terms, First Drawdown Percentage of Total Loan is most commonly encountered in connection with All-in-One Loan (Land + Building) within the property development capital stack.
View glossary entry