The Developer’s Balance Sheet: What You See Isn’t Always What You Get (Especially with "Shadow Lending")
In Southeast Asia, especially Cambodia, buying off-plan from a major developer might feel safe — until you dig deeper.
Many Chinese-backed developments look solid on paper. You check the balance sheet: low bank debt, plenty of assets. Green light, right?
Not always.
Welcome to the world of shadow lending — off-book loans and informal financing channels that don’t appear in official records. It’s common in Chinese developer ecosystems, where money flows through complex, often opaque structures. You won’t find it on a spreadsheet, but it can crush a project if the funding chain breaks.
That’s why in these markets, a developer’s reputation matters as much as their paperwork. Ask who they’ve built for before. Look at what they’ve completed — not just what they’ve promised. And talk to agents who’ve sold their units over time.
Financials can be dressed up. A half-finished tower can’t lie.