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Construction draw software: How to automate loans

Kate Stoneburner
October 18, 2022
Read Time: 0 min

Streamlining the construction loan process

Construction draw software helps lenders and contractors to automate the construction loan management. 

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Eliminating manual tasks
How does construction draw software help lenders?

Construction draw software is a construction loan management tool that helps lenders and contractors to automate their manual tasks. It can be used to manage the procurement process, plan and track the project, generate reports, and much more. Construction draw software makes lenders more efficient by generating status reports and setting automatic alerts in a format that can be easily accessed by contractors and lenders alike.

The basic functionality of construction loan management software

For most financial institutions, a construction draw request consists of several sets of documents including budgets, receipts, and lien releases submitted by the contractor or developer to the lending institution. What makes the draw request process slow-moving is the amount of back-and-forth communication it takes.

Rather than emailing constantly or relying on shared spreadsheets which must be constantly checked for errors and updates, more and more banks are turning to construction loan automation technology. Construction draw software allows lenders to keep draw documents in one place where all parties can see the material that has been submitted or requested.

Storing all loan and draw request information in one place that is accessible from anywhere—even at home or on a phone—saves hours of tedious manual work for lenders, and the ability to create custom reports from the documents makes audits and review processes much easier. Lenders can even set up notifications or limits on draw requests so they will be notified as soon as a request is made.

Customer perspective
How does construction draw software help contractors?

Construction contractors can find the draw process tedious and time-consuming, especially since it takes time they could be spending on a project in the field. Most draw requests require several hours of work on the part of the developer or contractor to gather necessary documents, photos, lien releases, and receipts. Sending them securely to the loan officer can also be a hassle depending on the file size and data-sharing programs available. On top of that, sorting through emails and folders to find those documents again later can be frustrating.

Borrower satisfaction is one of the biggest benefits of using construction draw software. Developers, inspectors, and borrowers can all submit draw request information to the lender securely and instantly from anywhere, even from the construction site. Software like Abrigo Construct can also help contractors and developers manage project budgets and track expenses. It saves them time and effort, while also providing a more accurate and streamlined process.

A sound investment
Optimizing the draw process with automation

Construction loans are a complicated process, and it is crucial to have an efficient system in place. Imagine getting an alert that a project is overfunded before it becomes a risk, being able to look at your entire construction loan portfolio in one place, or being able to run reports on any aspect of every project, and you’ll quickly see the appeal of automating the process.

A good construction draw software allows users to create new projects, add tasks, set up auto alerts, overfunding alerts, assign payments, and generate reports. It also comes with an in-built reporting system that provides insights into the project’s progress at every stage of the process.

By saving time for lenders and borrowers and circumventing the need for manually filled spreadsheets, construction lending software can help lenders minimize errors and control the loan process more efficiently.

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About the Author

Kate Stoneburner

Content Marketing Manager
Kate Stoneburner is a Content Marketing Manager at Abrigo, where she works with industry thought leaders to create digital content that helps financial institutions better serve their customers. Before joining Abrigo, Kate managed social media and produced articles for Campbell University’s quarterly magazine and other university content initiatives. She earned

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About Abrigo

Abrigo enables U.S. financial institutions to support their communities through technology that fights financial crime, grows loans and deposits, and optimizes risk. Abrigo's platform centralizes the institution's data, creates a digital user experience, ensures compliance, and delivers efficiency for scale and profitable growth.

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