Built Different

Factory Deposits: Who Owns the Risk?


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Who owns the risk when you put down a factory deposit?

Modular factories require substantial upfront deposits—sometimes 30-50% of the contract value. That money leaves your control before a single module is built. Understanding where that risk lives is critical.

Topics covered:

  • Why factories require large deposits
  • What happens to your deposit if the factory fails
  • How to protect deposits through escrow and bonding
  • The collateral and security questions lenders ask

For developers and capital partners managing modular procurement risk.

Built Different is produced by Spring Street Management Group. New episodes drop weekdays at 6 AM Pacific.

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Built DifferentBy Spring Street Management Group