One of the most common points of friction on a ground-up construction loan isn't the approval - it's the draws. Builders who understand how the draw process works move faster, avoid cash flow gaps, and keep their projects on schedule. Here's exactly how it works at Integrated Capital Solutions.
What Is a Construction Draw?
When you close a ground-up construction loan, the full loan amount isn't disbursed upfront. Instead, funds are held in a controlled account and released in stages as construction milestones are completed. Each release of funds is called a "draw."
This protects both the lender and the borrower - you only borrow what you've actually spent, and you pay interest only on what has been drawn, not on the total loan commitment.
The Integrated Capital Solutions Draw Process - Step by Step
| Step | What Happens | Timeline |
|---|---|---|
| 1. Submit Draw Request | Borrower submits a draw request through the Trustpoint portal with a budget breakdown of completed work | Day 1 |
| 2. Inspection Ordered | Integrated Capital Solutions orders a third-party inspection to verify the work claimed in the draw request | Day 1–2 |
| 3. Inspector Visits | Licensed inspector visits the site and verifies completed work against the draw request | Day 2–3 |
| 4. Inspection Report Reviewed | Integrated Capital Solutions reviews the inspection report and approved draw amount | Day 3 |
| 5. Funds Disbursed | Approved draw funds are wired to borrower's account | Within 24 hours of approval |
What Do I Need to Submit a Draw?
- Completed draw request form via the Trustpoint portal
- Budget breakdown showing work completed by line item
- Lien waivers from all contractors and subcontractors who received payment
- Photos of completed work (required for all draw requests)
- Borrower Letter of Completion (for final draw)
How Many Draws Can I Take?
There is no fixed limit on the number of draws for most Integrated Capital Solutions construction loans. Borrowers typically take draws at natural project milestones - foundation, framing, rough MEP, drywall, finishes, and final completion. Draws can be as frequent as construction progress allows.
What Are Lien Waivers and Why Do They Matter?
A lien waiver is a document signed by a contractor or subcontractor confirming they have been paid for their work and waiving their right to file a mechanic's lien against the property for that amount. Integrated Capital Solutions requires lien waivers before releasing draw funds to protect the property's title.
Integrated Capital Solutions provides downloadable lien waiver templates (conditional and unconditional, progress and final) on the Construction Draw resources page.
What Is the Final Draw?
The final draw releases the last portion of the construction budget upon project completion. To receive the final draw, you'll need a Certificate of Occupancy (CO) from the local municipality, a final inspection, all final lien waivers, and a Borrower Letter of Completion.
Access the portal
Submit draw requests, upload documents, and track disbursement status through the Trustpoint portal at Integrated Capital Solutionscapital.com/construction-draw