Construction draw
A construction draw is a scheduled release of funds from a construction loan, paid after the lender verifies that the corresponding stage of work is complete.
Also known as: Bank draw · Draw request · Construction loan draw
On a financed build, the money does not arrive at the start. The lender releases it in draws tied to stages — excavation and foundation, framing and lock-up, mechanical rough-in, finishing, completion — and each release usually follows an inspection or an appraisal confirming the work claimed has been done.
The builder's exposure sits in the gap. Suppliers and subs expect payment on their terms, the draw arrives on the lender's, and the difference is financed by the builder. Draw schedules that do not match the trade payment cycle are one of the most common causes of cash pressure on otherwise profitable jobs.
What speeds a draw up is almost always documentation: dated progress photos, an updated percentage complete per stage, invoices matched to the stage being claimed, and lien or holdback paperwork where the lender requires it. Assembling that after the request is made is what causes the delay.
In Canada vs the United States
Canadian lenders typically require holdback compliance under the applicable provincial lien legislation as part of the draw, and may ask for statutory declarations from the contractor confirming subcontractors and suppliers have been paid. Requirements vary by lender and province.
Run the job, not the paperwork
Estimates, job costing, progress billing and the tax for your province, in one system.