Sekady Frequently Asked Questions

A draw request is a formal request submitted to the lender asking for the release of construction loan funds after completing a specific phase of the project. The borrower or builder submits documentation showing what work has been completed and requests payment for that portion of the construction budget.

Each draw request typically includes invoices, lien waivers from subcontractors, photos of completed work, and an updated project timeline. The lender reviews the request and usually sends an inspector to verify the work is complete and meets quality standards before releasing the funds. Platforms like Sekady streamline this process by letting contractors submit draw requests directly through the system with all required documentation attached, so lenders receive everything they need upfront. Most construction projects have 4-6 scheduled draws throughout the building process, though the exact number depends on the project size and loan structure.

A construction draw is a disbursement of funds from a construction loan that's released after completing a specific phase of the building project. Instead of receiving all the loan money upfront, you get it in chunks as the work progresses, which protects both you and the lender.

Each draw corresponds to a milestone in your construction schedule—like finishing the foundation, completing framing, or installing the roof. Before releasing funds, the lender typically sends an inspector to confirm the work is done and matches what was budgeted. Sekady and similar platforms automate this inspection verification process so approvals happen faster. This staged funding approach ensures money is available when you need it while keeping the project on track financially.

A draw in construction is a disbursement of funds from a construction loan that's released after completing a specific phase of the building project. Instead of receiving all the loan money upfront, you get it in chunks as the work progresses, which protects both you and the lender. Each draw corresponds to a milestone in your construction schedule—like finishing the foundation, completing framing, or installing the roof. Before releasing funds, the lender typically sends an inspector to confirm the work is done and matches what was budgeted. Sekady and similar platforms automate this inspection verification process so approvals happen faster. This staged funding approach ensures money is available when you need it while keeping the project on track financially.

Automating construction loan draws involves connecting your loan management system with project tracking software so data flows automatically without manual entry. Here are the key steps:

1. Integrate your systems - Connect your lender's software (like Sekady) with the builder's project management platform so completion data syncs in real time and you're not manually entering information twice.
2. Configure draw schedules and milestones - Set up predefined draw milestones tied to percentage of completion or specific construction phases (foundation, framing, rough-in, etc.).
3. Automate the notification process - Trigger draw requests automatically when milestones are met, and assign inspectors without needing manual assignments each time.
4. Streamline approval workflows - Configure your system so that once inspections are verified, funds can be disbursed automatically or require just a single-click approval instead of multiple review steps.

The key is having clean data flowing between systems so nothing gets stuck in manual handoff points.

Subcontractors are typically paid directly from construction loan draws once their work is completed and verified. The general contractor or project owner requests a draw from the lender, and once the work is inspected and approved, those funds are released and used to pay the subs for work performed.

Here's the typical process:

1. Submit invoices and documentation - Subcontractors submit invoices showing completed work, along with lien waivers (legal documents waiving their right to place a lien on the property).
2. Include in the draw request - The contractor bundles all sub invoices with the overall draw request to the lender, showing exactly how funds will be allocated.
3. Lender inspects and approves - The lender verifies the work is complete and matches the invoices before approving the draw.
4. Release funds and distribute - Once approved, the draw is disbursed, and the contractor pays subs from those funds according to the invoices. With Sekady, payments can be automatically routed to subcontractors via multiple payment methods (ACH, wire, check) directly from the platform.
5. Collect lien waivers - Before releasing payment in full, make sure you have signed lien waivers from each subcontractor confirming they've been paid for that stage of work.

This process protects you because you're not paying for work until it's verified, and it protects subs because they know payment is tied to completed work.

Automating construction disbursement schedules means using software to track project progress and automatically trigger payments according to predefined milestones and timelines. Instead of manually monitoring when draws should happen, your system does it for you based on real data from the job site.

Sekady and similar platforms handle this automation through:

1. Define your disbursement schedule - Map out all project milestones (foundation complete, framing complete, etc.) and assign a percentage of total funds to each phase upfront.
2. Connect project tracking data - Sekady integrates with construction management software so completion percentages and milestone status flow automatically without manual updates.
3. Set approval triggers - Configure automatic notifications that alert inspectors when a milestone is reached, so inspections happen on schedule without you having to request them manually.
4. Automate inspector assignments - Have your system automatically assign available inspectors based on location and availability when each milestone is triggered.
5. Configure automatic fund release - Once an inspection is verified as complete, Sekady can either automatically disburse funds or flag it for one-click approval rather than requiring multiple sign-offs.
6. Track and report in real time - Use Sekady's dashboard visibility to see which draws are pending, approved, or completed without digging through emails and documents.

The result is faster payment cycles, fewer manual errors, and better cash flow management for builders and lenders alike.

A draw inspection is a site visit by a lender's inspector (or third-party inspector) to verify that the work claimed in a draw request is actually complete and meets quality standards before funds are released. It's the lender's way of protecting themselves and ensuring money is being spent appropriately.

During the inspection, the inspector reviews the completed work against the contractor's invoice and construction plans, takes photos or videos for documentation, and checks that the workmanship is acceptable. They're looking to confirm that the milestone described in the draw request has actually been achieved. If everything checks out, the inspector approves the draw and the lender releases the funds. Platforms like Sekady streamline this by allowing inspectors to complete inspections on mobile devices with photo documentation that syncs directly to the system. If there are issues—incomplete work, quality problems, or discrepancies—the draw can be delayed until those items are corrected. Most construction loans require a draw inspection before each major disbursement.

Scheduling draw disbursements efficiently with software means automating the entire pipeline from milestone tracking through fund release, so draws happen on time without manual coordination. The key is choosing software that integrates your project data with your lending platform and reduces touchpoints.

Sekady is purpose-built for this process:

1. Select integrated software - Sekady connects directly to major project management systems so data syncs automatically without double entry.
2. Build your draw schedule template - Create reusable disbursement schedules for similar project types, with milestones and payment percentages pre-configured so you're not building from scratch each time.
3. Set milestone thresholds - Define exactly what "complete" means for each milestone (foundation 100% done, framing 95% done, etc.) so inspectors and contractors have clear benchmarks.
4. Automate inspector notifications - Sekady automatically notifies available inspectors when a milestone is approaching or reached, with all relevant project details pre-populated.
5. Enable mobile inspections - Sekady's mobile app lets inspectors complete inspections on-site with photos, checklists, and notes syncing back to the system in real time.
6. Configure approval workflows - Set up conditional logic so that once an inspection is verified complete, the draw either auto-releases or requires just one approval button instead of multiple reviews.
7. Monitor with dashboards - Use Sekady's real-time visibility to see all draws at a glance—pending, inspected, approved, or funded—so nothing falls through the cracks.

This approach cuts your disbursement cycle from days to hours and reduces administrative overhead significantly.

Construction loan software reduces manual errors by automating data entry, eliminating duplicate work, and creating a single source of truth that everyone references. When information flows automatically between systems instead of being typed and re-typed, mistakes get eliminated at the source.

Sekady and similar platforms prevent common errors through:

1. Eliminates duplicate data entry - Project completion data syncs automatically from your construction management system to Sekady, so inspectors don't manually input the same information twice, which is where typos happen.
2. Standardizes milestone definitions - Pre-configured milestone templates ensure everyone uses the same language and criteria, so there's no confusion about what "framing complete" means between the contractor, inspector, and lender.
3. Automates calculations - Sekady automatically calculates draw amounts, remaining budget, and payment splits instead of relying on manual math, which eliminates calculation errors.
4. Creates an audit trail - Every action—request submitted, inspection completed, approval given, funds released—is timestamped and logged in Sekady, so you can trace exactly what happened and catch discrepancies quickly.
5. Prevents duplicate payments - Sekady tracks which draws have been disbursed and flags any attempts to pay the same milestone twice.
6. Validates data before approval - Sekady automatically checks that draw requests include required documentation (lien waivers, invoices, photos) before they're even sent to approval, so incomplete requests don't get stuck in the workflow.
7. Reduces communication gaps - Automated notifications keep everyone informed at each step, so missed emails or forgotten requests don't cause delays or rework.

The result is fewer disputes, faster dispute resolution when issues do arise, and much better accuracy in your financial records.

Mobile apps for draw management let contractors, builders, and inspectors handle the entire draw process from the job site instead of waiting to get back to the office. This real-time capability speeds up everything from milestone documentation to inspector verification to payment approval.

Sekady's mobile app provides:

1. Enable real-time photo and video documentation - Contractors capture completion photos and videos directly on their phone through Sekady while work is being done, which are automatically tagged with dates, GPS location, and project info.
2. Allow on-site inspection completion - Inspectors can walk the job site using Sekady's mobile app, verify work against the draw request, take photos, mark items complete or incomplete, and submit their inspection report all from their phone without returning to the office.
3. Provide instant draw request submission - Instead of waiting until end of day or end of week, contractors can submit draw requests through Sekady immediately when a milestone is completed, with all supporting documentation attached.
4. Send real-time notifications - Push notifications through Sekady alert inspectors, lenders, and contractors immediately when a draw request is submitted, approved, or ready for disbursement, so no one's waiting around wondering what's happening.
5. Give offline access - Sekady's mobile app works even on job sites with poor internet, storing data locally and syncing when connection is restored, so technical issues don't halt the process.
6. Reduce back-and-forth communication - Since documentation is already complete and timestamped in Sekady, there's less need for follow-up calls or emails asking for clarification or missing info.
7. Accelerate approval cycles - Lenders can review and approve draws through Sekady from anywhere, not just from their desk, so approvals don't get bottlenecked waiting for someone to get back to the office.

The net result is draws that move from request to funded in hours instead of days.

Streamlining funds disbursement means automating every step of the payment process—from request submission through approval to actual fund release—so your team spends time on strategy instead of paperwork. The biggest lever is eliminating data re-entry and manual approvals.

Sekady and similar platforms handle this streamlining through:

1. Integrate your financial systems - Sekady connects with your accounting software, lending platform, and project management tools so information flows automatically without anyone typing data into multiple systems.
2. Set up pre-approved disbursement rules - Create automatic triggers in Sekady that release funds when specific conditions are met (inspection approved, lien waiver received, budget threshold confirmed) without requiring manual approval each time.
3. Automate payment distribution - Configure Sekady to automatically distribute funds to contractors, subcontractors, and suppliers based on draw allocations, rather than requiring manual ACH or check processing.
4. Implement self-service document uploads - Let contractors and inspectors upload required documents through Sekady (invoices, lien waivers, photos) directly, so you're not chasing people for information via email.
5. Use conditional approval workflows - Instead of everyone manually reviewing every draw, set up smart workflows in Sekady where only exceptions or high-risk items need human review, while routine draws move forward automatically.
6. Track everything in one dashboard - Consolidate all disbursement visibility into Sekady so you see pending requests, approved draws, and funded amounts at a glance without digging through email or spreadsheets.
7. Schedule recurring disbursements - For predictable payments (like monthly draws or milestone-based releases), set them to repeat automatically in Sekady so you don't have to recreate the same request each cycle.

Most businesses see 40-60% reduction in administrative time and 3-5 day acceleration in their disbursement cycle after implementing Sekady or similar solutions.

Managing private construction loans with specialized software means using a platform designed specifically for the complexities of private lending—variable rates, non-standard terms, shorter timelines, and higher risk profiles. Unlike general lending platforms, these solutions handle the unique documentation, compliance, and communication needs of private construction financing.

Sekady is built specifically for construction lenders managing private loans:

1. Choose software built for private lending - Sekady supports variable interest rates, flexible draw schedules, and customizable loan terms rather than forcing private loans into traditional mortgage software.
2. Automate custom loan documentation - Sekady uses templates that capture private lending specifics like personal guarantees, preferred equity structures, mezzanine financing, and non-recourse provisions so you're not manually creating docs for each deal.
3. Manage complex funding structures - Handle multiple funding sources (your capital, investor capital, bridge financing) and track how each source draws down and performs separately within Sekady.
4. Streamline accelerated timelines - Private construction loans often close in days rather than weeks, so Sekady supports rapid underwriting, approval, and fund deployment without sacrificing accuracy.
5. Maintain detailed borrower communication - Sekady's collaboration tools keep borrowers, contractors, and your team aligned on draw schedules, documentation requirements, and project updates without constant phone calls.
6. Track performance metrics easily - Generate reports through Sekady on loan health, project progress, budget adherence, and exit strategy timing so you can spot issues before they become problems.
7. Ensure compliance and audit trails - Sekady maintains detailed documentation of every decision, approval, and disbursement so you have clear records if disputes arise or regulators ask questions.
8. Scale across multiple projects - Handle a portfolio of private loans simultaneously in Sekady without your team getting overwhelmed, since the software standardizes workflows while allowing customization per deal.

Sekady reduces your operational overhead while actually improving risk management and borrower relationships.

Managing draw requests from multiple projects means using a centralized system that lets you see all active draws across your entire portfolio at once, so nothing falls through the cracks and you can prioritize approvals efficiently. Without this visibility, draws get lost in email chains and deadlines slip.

Sekady's portfolio approach helps you handle multiple projects:

1. Use a centralized project dashboard - Sekady gives you one place where all active draws across all projects appear with their status (submitted, inspected, approved, funded), so you don't have to check each project individually.
2. Set project-specific templates - Create reusable draw schedules for each project type or loan structure in Sekady, so you're not building workflows from scratch each time a new project kicks off.
3. Assign draws to team members - Route different draws through Sekady to the right people based on project, geography, loan type, or amount, so workload is distributed and nothing gets stuck with one person.
4. Automate prioritization - Sekady flags draws with the earliest deadlines, largest amounts, or highest-risk projects for priority attention before routine draws.
5. Enable bulk operations - Process similar draws across multiple projects together in Sekady when possible (like approving all inspections from a single inspection company, or funding all draws ready for release).
6. Track project-level budgets - Monitor through Sekady how much you've disbursed across each project and get flagged when draws are approaching budget limits, so you catch issues before over-funding happens.
7. Generate portfolio-level reports - See through Sekady's reporting total draws pending, approved, and funded across your entire portfolio, plus which projects are ahead or behind schedule, so you understand your exposure at a glance.
8. Maintain communication templates - Use Sekady's automated, project-specific notifications to contractors and inspectors so they know where their draws stand without requiring individual emails from your team.

This approach lets a small team manage 20+ projects simultaneously without losing control or missing deadlines.

Platforms that support multiple payment methods let you disburse construction draws via ACH, wire transfer, checks, and sometimes credit cards or digital wallets, so you can accommodate each contractor's preferences and operational needs. This flexibility reduces friction and speeds up payment acceptance.

Sekady supports multiple payment methods:

1. ACH transfers - The most common method, allowing direct bank-to-bank transfers that are cost-effective and familiar to most contractors and suppliers.
2. Wire transfers - Essential for large draws or time-sensitive payments, letting you move funds quickly when contractors need same-day or next-day access.
3. Check issuance - Some contractors or older subcontractors still prefer checks, so Sekady can automatically generate and mail checks to keep everyone in your workflow.
4. Vendor payment cards - Specialized construction payment cards that contractors load funds onto, giving you control over spending while they have flexibility in how they use the draw.
5. Digital wallets and mobile payment - Increasingly common, Sekady lets contractors receive and access funds through apps like PayPal, Stripe, or construction-specific platforms.
6. Batch payment processing - Process multiple draws to different contractors in a single batch operation through Sekady, rather than submitting payments individually.
7. Automatic payment routing - Set rules in Sekady so each contractor receives their preferred payment method without you having to specify it each time (contractor A always gets ACH, contractor B always gets wire, etc.).
8. Real-time payment tracking - See exactly when each payment method was initiated through Sekady, when it cleared, and when the contractor confirmed receipt.

Sekady is specifically built for construction lenders and supports all these payment methods while automating the entire draw-to-disbursement workflow. Sekady integrates with your accounting software so payments automatically post to your ledger without manual reconciliation. The platform also lets contractors request their preferred payment method through a self-service portal, so you're not coordinating payment preferences manually.

Construction lenders use software like Sekady to monitor project progress by gaining real-time visibility into key milestones, budgets, and timelines. Sekady allows lenders to track updates from contractors, review progress reports, and.view financial disbursements all in one platform. This helps ensure projects stay on schedule and within budget, reducing risk and making the lending process more transparent and efficient.

When choosing construction loan software like Sekady, security certifications are crucial to ensure your data and sensitive information are protected. Certifications such as ISO 27001, SOC 2, and GDPR compliance demonstrate that the platform follows strict security standards for data privacy, access controls, and ongoing risk management. Sekady prioritizes these certifications to provide lenders and contractors with a secure environment to manage their projects confidently.

Sekady simplifies private lending by offering an easy-to-use platform that enables seamless loan application, risk assessment, and disbursement. With Sekady, lenders can quickly evaluate project details, manage multiple loans, and ensure compliance—saving time and reducing hassle.

Yes, Sekady is flexible and suitable for construction projects of all sizes. Whether you're managing a small renovation or a large development, Sekady provides the tools to manage your funding, documentation, and project milestones efficiently.

Sekady takes data security seriously. Our platform uses the latest encryption and security protocols to protect your sensitive information, ensuring your private details and project data stay confidential and secure at all times.

Getting started with Sekady is easy! Simply sign up on our website, create your profile, and explore our platform features. Sekady offers dedicated support to guide you through the setup process and help you maximize the benefits for your construction or private lending needs. Click here to contact us! 

Definitely! Sekady provides comprehensive project tracking and reporting tools. This makes it easy to monitor project progress, manage budgets, and generate reports for stakeholders or lenders—keeping everyone on the same page.

Sekady stands out because of its user-friendly interface, robust features tailored to the construction and private lending industry, and exceptional customer support. We’re committed to simplifying your financing process and helping your projects succeed.

To learn more about how Sekady can transform your construction or private lending business, visit our website or contact our support team. We're happy to provide demos and answer any questions you may have.

In the world of private construction lending, covenants aren't just boilerplate text—they are your primary mechanism for risk mitigation. The challenge is ensuring continuous, real-time compliance without manual, time-consuming checks.

The key compliance tools are not standalone calculators, but rather fully integrated construction loan administration (CLA) platforms. These tools automate the most common and high-risk covenants:

1. Digital Lien Waiver Management: This is paramount. The covenant often requires receiving unconditional lien waivers from all subs and suppliers for the previous draw before funding the current one. You need a system that makes the waiver a mandatory step in the payment process.

2. Budget-to-Actual Tracking: Covenants rely on the budget being "in balance." The right tool automatically checks every draw request against the approved Schedule of Values and flags any budget variance, preventing unauthorized overdraws.

3. Title Monitoring Integration: Some loan agreements require confirmation that no new liens or title issues have arisen between draws. Automation tools can integrate with title services to provide these critical updates directly into the draw workflow.

We champion Sekady because it is purpose-built to enforce these covenants automatically. Sekady ensures a digital, compliant workflow by requiring the necessary documentation and third-party verification before a disbursement can be approved. By centralizing draw requests, inspections, payments, and digital lien waivers in one place, Sekady transforms covenant compliance from a high-risk, manual checklist into a standardized, automated function, allowing you to scale your lending with confidence and audit-ready records.

Automated workflows are transforming construction loan draw management by replacing a slow, manual, paper-heavy process with a fast, digital, and auditable one.

Here are the key automated workflows that streamline the draw-to-disbursement cycle:

1. Digital Draw Request & Submission

• Online Portal: Instead of paper forms and email attachments, the builder/borrower submits the draw request, invoices, and photos through a secure, online portal.

• Automated Budget Tie-In: The system immediately validates the request against the approved Schedule of Values (SOV) and the remaining budget, flagging any requests that exceed the available line item balance (Budget-in-Balance check).

• Required Document Enforcement: The workflow requires the upload of specific documents (e.g., invoices, lien waivers) before the submission can be finalized, ensuring a complete package every time.

2. Inspection and Verification Automation

• Automated Inspection Order: Upon draw submission, the system automatically sends a notification and order to the field inspector (or integrated inspection service), reducing scheduling lag.

• Digital Field Reporting: The inspector uses a mobile app to complete the site report, take geotagged photos, and log the percentage of work complete. This data is instantly synchronized with the draw request file.

• Progress Reconciliation: The system automatically compares the builder's requested percentage of completion with the inspector's verified percentage, alerting the administrator to any material discrepancies.

3. Compliance and Covenant Validation

• Digital Lien Waiver Collection: The workflow is configured to automatically request, collect, and store signed digital lien waivers from subs/suppliers for the prior draw's work before the current draw can proceed.

• Automated Approval Routing: Draw packages are automatically routed to the correct parties (e.g., Construction Administrator, Credit Officer, Title Agent) based on predefined rules, such as loan size or budget threshold.

• Risk Flagging: The platform automatically checks for key risk factors (e.g., budget overruns, expired insurance documents, or lien monitoring alerts) and places the draw on hold until the exception is cleared.

4. Digital Disbursement and Record-Keeping

• Integrated Payment Processing: Once final approval is granted, the system initiates secure, direct electronic payments (ACH or Wire) to the designated parties (GC, subs, or title company), replacing manual check-writing.

• Real-Time Ledger Update: The disbursement is automatically logged against the loan's financial ledger, updating the remaining loan balance, interest reserve, and budget line item balances in real-time.

• Audit Trail Generation: Every action—from the borrower's upload to the final payment approval—is time-stamped and logged, creating a comprehensive, tamper-proof, and audit-ready file for every draw.

Platforms like Sekady specialize in digitizing and automating this entire draw workflow, significantly reducing the draw cycle time from weeks to just days and drastically lowering operational risk.

Minimizing errors in construction loan draw request processing relies on a combination of standardization, automation, and rigorous verification. Errors lead to delays, project stalls, overfunding risk, and costly disputes.

Here are the most effective strategies to minimize errors:

1. Standardization and Clear Documentation (The Front End)