Title: How Do You Like Your Construction Loan Funds Released—Big Chunks or Lots of Little Payments?
I get the logic behind milestone draws, but I’ve actually found that more frequent, smaller payments can help with cash flow—especially on complex builds where trades overlap. Chasing paperwork is a pain, sure, but waiting for a big milestone can sometimes stall subs who need deposits up front. Maybe it’s just the projects I’ve been on, but a bit more granularity has kept things moving for us.
“chasing paperwork for every little thing can slow the whole job down and frustrate everyone.”
That’s true, but sometimes the alternative is crews sitting idle while we wait for the next big draw. It’s a trade-off, like everything else in this business.
I totally get where you’re coming from. On bigger sites, I’ve found that smaller, more frequent draws keep everyone moving—especially when you’ve got multiple trades overlapping. Here’s what’s worked for me: set up a simple schedule with the lender, tie each mini-draw to clear deliverables (like “framing started” or “windows delivered”), and keep backup docs ready to go. It’s more admin, but it avoids the big slowdowns when you’re waiting for a major milestone. Sometimes it feels like herding cats, but at least the cats are working...
Title: How Do You Like Your Construction Loan Funds Released—Big Chunks or Lots of Little Payments?
I’ve been on both sides of this, and honestly, those little payments drive me a bit nuts sometimes. I get the logic—keeps everyone accountable, less risk for the lender, etc.—but from my end, it can feel like I’m constantly chasing down paperwork just to keep the creative side moving. There was one project where we had to wait for a mini-draw before ordering custom tile, and it threw off the whole color story for weeks.
That said, when things are running smoothly and the schedule’s tight, smaller draws do help avoid those “oh no, we’re out of funds” moments. But I’ll admit, I miss the days when you could just plan big phases and not have to justify every single step. Maybe it’s just nostalgia talking... or maybe I just want to spend more time picking fabrics than filling out forms.
Honestly, I totally get where you're coming from. The endless paperwork for every tiny draw can really drag things out... I've had projects stall just waiting for inspector sign-offs before we could even get reimbursed for stuff we already bought. But then again, those big lump sums sometimes make it too easy to overspend early and scramble later. Guess it’s a trade-off—depends if you trust your team to stick to the plan or need the lender’s leash to keep things in check.
But then again, those big lump sums sometimes make it too easy to overspend early and scramble later.
I’ve definitely seen that happen—one project I worked on, the GC got a big chunk up front and suddenly we had fancy tile in the bathrooms but were scrambling to cover basic finishes at the end. What’s worked for me is mapping out a draw schedule tied to real milestones, not just time. That way, you get a creative flow but still keep things grounded. It’s a bit more paperwork, but it saves headaches when you hit those critical phases.
