Construction
Draw Schedules: How Builders Fund Projects Without Draining Cash
Construction projects fund through draw schedules against completed milestones, with builder capital carrying the early stages. The smoother path balances the draws, the interest carry and the take-out at close.
How draws work
- Closing sets the schedule against milestones
- Inspections verify completion before each release
- Interest is commonly paid on drawn amounts during the build
- The take-out repays the construction debt at stabilization
What carries the early stages
Land, deposits and the first draws usually ride on builder capital. An equipment line or working-capital facility keeps company finances separate from project finances.
| Project capital | Construction-to-permanent, draw based |
| Builder equipment | Equipment financing outside the project |
| Carry and contingencies | Working capital or a reserve line |
| Take-out | Permanent financing arranged before closing |
Lenders underwrite the exit first. If the take-out is credible the rest follows; if it is not, no schedule saves it.
Frequently asked questions
What speeds approval?
Plans, permits, a realistic budget and a documented take-out path.
Spec builds or pre-sold?
Both are common. Pre-sold projects size the take-out more easily.