Managing private construction loans with specialized software means using a platform designed for the complexities of private lending—variable rates, non-standard terms, shorter timelines, and higher risk profiles. Unlike general lending platforms, specialized solutions handle unique documentation, compliance, and communication needs. Sekady supports flexible terms, custom documentation, complex funding structures, rapid timelines, and complete audit trails.
Private construction lending operates under fundamentally different rules than bank lending. Faster timelines. Custom terms. Complex funding structures. Higher risk. More documentation.
General lending software wasn't designed for this. You need specialized solutions.
Bank lending: Standardized processes, standard loan documents, defined underwriting criteria, predictable timelines (30-45 days to close)
Private lending: Custom terms negotiated per deal, specialized loan documents, flexible underwriting, rapid closings (days to a week), often mezzanine or preferred equity structures, investor capital involved, exit strategies tied to specific events
Complexity multiplier: Each private deal is almost unique. What works for one deal doesn't necessarily work for another.
Problem 1: Inflexible Terms Bank software is built for fixed rates, standard amortization, standard draw schedules. Private loans have variable rates, interest-only periods, flexible draw schedules tied to specific project events.
Problem 2: Limited Loan Structure Support Bank software assumes traditional first lien position. Private lending includes mezzanine loans, preferred equity, bridge financing, multiple tranches of capital.
Problem 3: Poor Documentation Handling Bank software uses standard forms. Private lending requires custom documents for each deal: personal guarantees, preferred equity agreements, non-recourse provisions, specific performance covenants.
Problem 4: Inadequate Compliance Tracking Bank software tracks basic covenants. Private lending requires detailed tracking of complex covenants: budget adherence, specific performance metrics, exit strategy confirmation, investor reporting.
Problem 5: Manual Communication Bank software isn't designed for the constant communication needed between lenders, borrowers, investors, and partners in private deals.
Specialized private lending software solves these problems.
Feature 1: Variable Interest Rate Support
Private loans often have rates tied to SOFR, prime, or other indices. Rates can vary during the loan term.
What you need:
Why it matters: A $5 million loan with rate tied to SOFR might have quarterly rate adjustments. Manual tracking is error-prone and time-consuming.
Feature 2: Flexible Draw Schedule Configuration
Private loans have draws tied to specific events, not just standard construction phases.
Examples:
What you need:
Feature 3: Custom Loan Documentation
Each private deal requires unique loan documents reflecting deal-specific terms.
What you need:
Feature 4: Complex Funding Structure Management
Private deals often involve multiple funding sources with different terms, performance criteria, and reporting requirements.
Examples:
What you need:
Feature 5: Rapid Underwriting and Approval
Private loans close fast—sometimes in days. Your system needs to support this pace without sacrificing accuracy.
What you need:
Feature 6: Investor Reporting and Communication
Private deals often have outside investors. They need regular reporting and communication.
What you need:
Feature 7: Covenant Compliance Tracking
Private loans have specialized covenants. You need to monitor them continuously and alert when breached.
Examples of private lending covenants:
What you need:
Feature 8: Comprehensive Audit Trail and Compliance Documentation
Private lending is heavily scrutinized. You need bulletproof documentation of every decision.
What you need:
Sekady is built specifically for private construction lenders. Here's how:
Variable Rate Management
Flexible Draw Structures
Custom Documentation
Complex Funding
Fast Underwriting
Investor Reporting
Covenant Compliance
Audit Trail
Pre-Closing Phase (Days 1-5)
During Construction
Problem Resolution
Exit Strategy Execution
| Metric | Why It Matters |
|---|---|
| Days to close | Private deals must close fast; system should enable rapid closing |
| Covenant breach detection time | Early detection enables remediation; prevents defaults |
| Investor reporting accuracy | Investors rely on accurate reporting; builds trust |
| Audit trail completeness | Regulators may audit; complete documentation is critical |
| Draw processing time | Borrowers appreciate fast draws; accelerates project |
| Error rate | Custom terms mean high stakes; errors are costly |
Private construction lending is complex and requires specialized software. General lending platforms can't accommodate the flexibility, speed, and documentation requirements.
Sekady is built specifically for private lenders. It handles variable rates, custom terms, complex funding structures, rapid timelines, and complete compliance documentation.
Ready to optimize your private lending business? Learn more about how Sekady handles private construction loans by visiting our FAQ page or scheduling a demo.