Construction loans generally fund under a defined process. Operating bills do not always wait for that process. The difference can create an equity requirement even when a project is performing close to plan.
Separate eligible spend from available cash
A cost's eligibility for reimbursement does not mean cash is available to pay it today. Track when the cost is incurred, paid, certified, included in a draw and funded.
Model the complete draw timeline
Identify the cutoff date, compilation period, inspections or third-party approvals, submission date and lender payment timing. Estimate funding by probability where approvals remain outstanding.
- Incurred cost
- Vendor payment date
- Draw submission and lender review
- Actual cash receipt
Connect the debt model to the equity schedule
Show required sponsor and LP contributions in the same weekly view. A delayed draw, lender retainage, cost overrun or borrowing-base limit can change the equity need independently of the total forecast development cost.
What ownership should see
A helpful review focuses on the next 30, 60 and 90 days: how much liquidity is needed, what draws are expected, which assumptions are unconfirmed and what a 30-day delay would change.
Continue the conversation
What does this look like across your portfolio?
Bring your current process to a 20-minute discussion. We can explore the questions worth examining next.
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