MIRS Group, LLC

Blog

Liquidity

What is liquidity? It is the available cash, and assets easily convertible into cash, a borrower has.

What is it that lenders want to know when they ask about liquidity? They want to know that the borrower will be able to make interest payments on the loan, and that they have the funds available to commence the project.

How much liquidity? 3 - 6 months of interest payments and 10% - 15% of the Construction Cost.

Mark Abramovich