Real Estate Developer
Working Capital
Transformation

A mid-sized real estate developer with residential and mixed-use projects across emerging urban corridors.

Successfully transformed cash flow management, reduced borrowing costs and stabilized project execution.

  • Industry

    Real Estate

  • Service

    Working Capital Management

  • Focus

    Cash Flow Optimization

  • Outcome

    Stabilized Execution

Client Overview

A mid-sized real estate developer with residential and mixed-use projects across emerging urban corridors.

Business Challenge

Despite strong sales and confirmed bookings, the company was struggling to manage, as construction outflows exceeding collections, high-cost short-term borrowings, cash diversion across projects. As a result, working capital gaps slowed execution, strained vendor relationships, and eroded customer confidence — threatening long-term growth.

Key Actions

1
Funding Arrangement & Capital Structuring

Replaced short-term high-interest borrowing with structured bank/NBFC limits tied to milestones.

2
Project-wise Cash Flow Diagnosis

Built detailed inflow–outflow models, separated project cash from corporate overheads.

3
Funding Strategy & Lender Confidence

Shifted from expensive bridge loans to structured project finance, implemented escrow mechanisms, and prepared investor documentation.

4
Governance & Execution Control

Established a Project Management Office (PMO), weekly dashboards, compliance tracking, and realistic delivery commitments.

Outcome & Results

Working Capital Relief

Considerable improvement in cash cycle enabling smoother operations and vendor payments.

Cost Optimization

Significant reduction in borrowing cost and finance leakage through structured financing.

Project Delivery

Execution stabilized and progressed predictably with proper governance structures.

Future Growth

Positioned to deliver projects faster with predictable cash flows and access institutional finance at better terms.

Impact & Future Growth

The developer is now positioned to:

Deliver projects faster with predictable cash flows

Access institutional construction finance at better terms

Launch new projects with disciplined governance structures