Funds can be disbursed rapidly for loans set up for the Quick Draw process. At its simplest, the Quick Draw requires no interaction from the Borrower, though this is rarely the case in practice. The Borrower has configuration options to determine whether to allow automatic disbursement of funds or to require a review from the Borrower.
First, the third-party inspection company will be scheduled for regular monthly or weekly visits; the Borrower has full discretion to adjust this timing for their individual production schedule(s) and has options to choose from such as ‘on the 5th of the month’, ‘the third Tuesday of each month’, or ‘weekly on Friday’. The inspector will then visit the site on schedule, perform their inspection, and upload the results to LMS (typically the same business day).
Once the inspection results are uploaded, the Borrower will receive a notification and may log into the Borrower Portal to review the results and their approved Quick Draw. Initially, the draw will be set up to disburse all validated hard costs, per budget line-item completion percent. At this point, the Borrower may add in any desired soft costs to the draw request (and upload associated invoicing).
The Borrower may also elect to reduce the amount to draw for any given line item, if desired. Because interest is calculated daily based on the amount of funds drawn, reducing the amount drawn may save the Borrower some interest fees during the life of the loan, reducing their overall costs.
Depending on how fast the Borrower is, and how much they choose to edit their Quick Draw, a Quick Draw can be in front of their Transaction Coordinator for approval immediately after inspection results are uploaded. A clean Quick Draw can often have funds disbursed to the Borrower within 1-2 business days of the inspection.