Feet on the Street – Show me the Money!
One of the questions we are asked most often “How long does it take for my draw to fund?”
By the time QuickDraw receives a draw request, it was hot two weeks ago. General Contractors, Subcontractors and Suppliers rely on receiving payment in a timely manner, and they absolutely should as they have earned that money.
How do we help them?
By design, immediate attention is required.
Construction invoicing is typically 30 days in arrears. While this is customary in the industry, it can place added pressure to get paid quickly. Larger companies are using cash flow to cover costs and need reimbursement. Smaller companies who cannot do so may need to cover weekly payroll and other expenses. Suppliers won’t ship materials if there’s a past due balance.
The Jerry Maguire approach to getting paid – “Help me, help you”
It’s a phrase we hear so often “We’ve already done the work and paid our people. Why can’t I get my check?”
This is exactly why we host kick-off meetings with Borrowers and General Contractor’s before a project starts. In detail, we review the lenders requirements to ensure everyone has a clear understanding of what constitutes a complete package. A single draw request is typically in the 6 and sometimes 7 figures. A $500,000 request can have 100-200 documents. It’s not crazy difficult, but it does require organization and attention to detail.
“Repetition is the key to mastery”
On average, a project will require 15 draws. Is there a learning curve on the first one to two draws? Most likely, yes. But after that, efficiency takes hold and we’re in the groove. If we are all working together draws can be turned to the lender in 3 business days and funded in one week or less. That’s moving and is achievable!
What’s the end result?
The project continues on schedule and without delay. Subcontractors and suppliers stay on the job and perhaps give it priority. Lenders get money out the door and start earning interest. Project profitability remains in-tact and can even increase.
QuickDraw is here to deploy capital and help ensure a successful project for all.
Time is money!
If you have found this information useful but have questions, please contact me on my cell (818) 254-5823. Thank you!
Greg Norris
QuickDraw is the go-to fund control partner for residential, commercial and industrial construction projects. From coast to coast, QuickDraw makes the fund disbursement process a positive experience for all. We provide an array of services including Fund Control, Draw Inspections, Cost Reviews and Portfolio Management.