Some loans are placed into a ‘Direct Pay’ program. For these loans, Builders Capital will disburse funds directly to any vendors via ACH. The Borrower is required to provide invoicing from the vendor, and where applicable the work will be validated by an inspector. Loans may be placed on the Direct Pay program for any of the following reasons:
- Local lien laws allow mechanics liens to prioritize over BC’s claim to the property; this currently applies to all loans originated in Oregon.
- Borrowers that are evaluated as higher risk.
- At the Borrower’s request to simplify their book-keeping.