How are construction funds released?
Many programs release funds through draws after inspections or documentation confirms that approved work has been completed.
CASHMIGO BUSINESS FUNDING
Construction Loan and Project Financing Options
Explore construction loans and financing for qualifying ground-up development, major renovations, conversions and commercial projects.
Already ready to provide your full business profile? Optional: Secure Full Application.
Construction Financing explained
Construction financing may support qualifying ground-up development, major renovations and conversion projects through a structured budget and draw process.
Common business uses
- Ground-up commercial projects
- Major renovations and conversions
- Acquisition and construction when eligible
Potential qualification factors
- Plans, permits and construction budget
- Borrower and contractor experience
- Equity, completed value and exit strategy
Common questions
CONSTRUCTION FINANCING GUIDE01 02 03
Financing for ground-up and major renovation projects.
Construction financing may support qualifying ground-up development, major rehabilitation, conversion and renovation projects. Funds are commonly advanced through draws as verified work is completed rather than delivered entirely at closing.
Providers typically evaluate site control, plans, permits, budget, contractor qualifications, borrower experience, projected completed value, equity contribution, contingency reserves and the exit strategy. Ground-up construction carries different risks and requirements than purchasing a stabilized property.
Prepare the project package
Organize plans, permits, scope of work, contractor bids, timeline, sources and uses, and a line-item construction budget.
Confirm equity and contingency
Understand required borrower equity, cost overruns, interest reserve and contingency expectations before closing.
Plan draws and the exit
Review inspection procedures, draw timing, retainage and the permanent financing or sale expected to repay the construction facility.
Information commonly requested
- Plans, permits and project schedule
- Detailed construction budget
- General contractor agreement and experience
- Acquisition information or evidence of site control
- Projected value, borrower liquidity and exit plan
Compare the structure
Construction financing is designed around an unfinished project and draw administration. A bridge loan may suit a lighter renovation or faster acquisition, while permanent commercial financing generally fits stabilized property with established income.
COMMON QUESTIONS
What business owners often ask.
Are construction funds released all at once?
Usually not. Many programs release funds through draws after inspections or documentation confirms that approved work has been completed.
Is prior construction experience required?
Requirements vary, but relevant borrower and contractor experience can be important, particularly for ground-up or complex projects.
Can land costs be included?
Some programs may finance an acquisition or recognize owned land as part of the borrower’s equity, subject to valuation, leverage and provider requirements.
General educational information only. Availability, approval, amount, cost and timing depend on the complete application and the applicable funding provider.
