Lending & investment · Defined
Equity-first funding
A funding sequence requiring specified equity to be contributed before loan proceeds are advanced.
Why it matters
The documents determine what qualifies as equity and how it is evidenced. Land value, previously paid costs, and new cash should not be assumed interchangeable.
In practice
A project example
The borrower lists land equity while the lender requires a further cash contribution before construction advances begin.
General educational guidance from KOW Building Consultants. Examples are illustrative, not project records. The applicable contract, standard, program, and jurisdiction control the requirements for a specific assignment.