Why it matters
The cashflow drives peak debt, peak equity, IRR, and the funding plan. Profit on cost can be calculated from headline numbers; everything else requires a cashflow. Lenders, equity partners, and ICs all want to see one.
Worked example
A 30-month residential cashflow has roughly five phases:
- Months 1–3: equity-funded acquisition, deposits, early works.
- Months 4–8: pre-construction soft costs, DA and CC, sales launch.
- Months 9–24: construction drawdowns on an S-curve, senior debt rises.
- Months 25–28: practical completion, OC, final inspections.
- Months 29–34: settlement waterfall pays down senior debt, distributes equity.
Peak debt lands around month 24; peak equity lands around month 8.
Related terms
Connected ideas in the glossary.
- Peak debtThe largest debt balance reached during the project.
- Peak equityThe largest equity balance committed during the project.
- Equity IRRTime-weighted return on the equity invested.
- Finance costsInterest, fees and line charges on senior and junior debt.
- Feasibility modelThe structured calculation that produces a feasibility result.
See it in action
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