Managing Cash Flow During a Construction Project with Timely Draws

When you’re in the middle of a construction project, managing your money is just as important as managing your crew. Running out of funds at the wrong time can delay your build, or even put it on hold entirely.

That’s where timely loan draws come in. They help keep your project moving and your finances on track.

At Boston Trust Corp, we help real estate investors and developers throughout Massachusetts stay on budget and on schedule. Here's how to use loan draws and cost tracking to stay in control of your construction project.

What Are Construction Draws?

A construction draw is a portion of your loan that’s paid out as your project hits certain stages, like completing the foundation, framing, or roof. Instead of getting all your funding up front, you receive it in chunks, based on what’s been done.

This keeps things organized and helps make sure the money is going toward actual progress, not sitting in a bank or getting spent too fast.

Some lenders require a site inspection or paperwork before releasing each draw. At Boston Trust Corp, we move fast so you don’t lose time waiting for approval.

Why Timing Matters

If you wait too long to request a draw, you might not have enough cash on hand to pay your team or order materials. That can delay the whole project and cost you more in the long run.

To avoid this, match your draw schedule to your project timeline. Track your progress, keep receipts and invoices ready, and work with a lender who understands that construction moves fast.

Keep an Eye on Your Costs

Construction cost tracking is just a fancy way of saying: know where your money is going.

By keeping a simple spreadsheet or using a software tool, you can:

• Monitor spending

• Spot budget issues early

• Keep your project from going off the rails

  
  

This also helps you keep a healthy loan-to-cost ratio, which compares how much you’ve borrowed to how much your project will cost. A lower ratio means you're borrowing responsibly and still have equity in the project.

We’re Here to Help

At Boston Trust Corp, we don’t just lend money, we support your whole project. That includes fast draw approvals, local decision-making, and flexible loan terms built for real-world construction.

We know that delays cost money, so we work quickly to keep your funding moving and your build on schedule.

Final Thoughts

Managing your cash flow is one of the smartest things you can do during a construction project. By planning your draw schedule, tracking your costs, and working with the right lender, you’ll avoid delays and protect your bottom line.

Have a project coming up?Let’s talk about how we can help you stay funded and on track. Get in touch with Boston Trust Corp today.