4 Crucial Questions to Consider For Choosing a Construction Lender

Finding a construction lender can be easy—but finding the right one for your specific project can be difficult. Lenders who utilize a digital construction loan administration system are not only more efficient, but also are able to disburse funds faster, helping you get the job done on time. You already have to be cognizant of reaching deadlines, paying specialty contractors, and maintaining relationships. Choosing a capital lender that utilizes Built to assist in the construction loan administration process helps ensure that you can accomplish all of the above. 

If you’re already using Built’s construction solution and want to refer your lender to ensure an even more seamless experience, you can do so today. Visit our lender referral page to learn more about how they can transform the way capital moves through the construction ecosystem.

To help you in your decision making, we’ve put together some questions to ask your lenders so that you can be sure the decision you make is the right one:

What’s your typical draw turnaround time?

You need to complete each and every one of your projects on-time and on-budget—so getting your draws when you need them is crucial. One way to confirm how quickly you’ll be able to receive your draws is by asking about a lender’s typical draw turnaround time. While waiting three days seems to be the norm, waiting less than a day is even better for you and your team—Built helps make that happen. Lenders who use Built CLA have been able to decrease their turnaround times for draw disbursement from days to hours, enabling projects to get done the right way, right on time. 

Do you have a digital draw system?

Once you’ve determined a lender’s typical draw turnaround time, the next natural question is to ask how those draws are disbursed. If their team uses a manual process, chances are that there’s a higher chance of manual error and increased waiting time from request to draw. A digital draw system provides improved efficiency, decreased draw times, and increased visibility for you and your team. If a lender uses Built for draw disbursement, paperwork and conversations that are time consuming are all in one place, making it simple to get the money you need in a timely fashion. 

Additionally, Built’s construction solution will provide your construction team with capabilities that improve your processes as well. Built integrates with Quickbooks, Procore, Sage, Xero and more to turn your lien waiver and construction payment workflows into a single, seamless experience. That way, you can ensure everything is properly documented and avoid piles of paperwork. 

What is your inspection process like?

Inspections are important for your lender to confirm whether or not your projects are on track. To help facilitate the flow of funds, Built has an Inspection Marketplace, created to equip lenders with top-rated inspectors. Built’s Inspection Services share an integrated, automatically curated list of participating inspection companies with our partnering lenders. When your lender uses Built’s inspection features, a part of our Built Plus offering, you can rest assured that it will be done quickly and efficiently. 

Do you have strong, consistent relationships with other vendors?

As you evaluate your options, asking a question like this one can reveal whether or not your lender has a proven track record of success with other contractors, owners or builders. A lender with consistent vendor relationships has proven processes that will ensure your success should you choose them for your construction loan.

When you’re focused on getting projects done, a seamless construction loan administration experience is crucial to your success. These questions are meant to serve as a general guide as you navigate choosing which lender is right for your project. Built has solutions for lenders and contractors alike to make sure that the construction lending process is streamlined from start to finish. 

Topics: Construction Lending