Specifically, developers use land as collateral to apply for loans from trust companies. If the loan is approved, the trust company will provide funds to the developer to support the construction and development of the project. This kind of land mortgage loan usually requires the developer to provide additional guarantee or guarantee to ensure that the loan can be fully guaranteed.
It should be noted that this behavior does not necessarily mean that there is a problem with the developer's capital chain or project. In fact, most real estate projects need financing to support construction, and land mortgage loan is a common financing method.