Build a draw

Enter a draw one cost code at a time, watch the in-balance test, and clear the required documents before it goes out.

A draw is a request for money against the lender's facility. This page is where one is built: the lender's budget lines at the top, then what this draw advances, then the entry sheet by internal cost code, then the invoices in the draw, then the documents the lender requires.

Each row on the entry sheet saves on its own, so the row and the form are the same element. You do not fill a page and submit it.

In balance

The in-balance test asks whether the remaining commitment still covers the remaining cost. The panel states the answer, and where the answer is no it states what curing the shortfall would take: the amount, by when, and who has to agree.

It deliberately does not predict whether the cure will happen. PadFlow knows what each member holds. It does not know how anybody will vote, and a confidence indicator on a covenant test would be the product inventing a fact about people.

The test is stated as a sentence: what is still available, against what finishing the job still costs. Where borrower funds contributed and not yet spent are part of what is available, the sentence names them, because they are part of how the answer was reached. The lender package prints the same sentence.

A line past its budget is flagged, not refused

A draw line above the amount its cost code is budgeted for is saved, and the screen says so. The roll-up names the cost codes and the lender budget lines that are past their own amounts, saving one hands back a sentence rather than a refusal, and the package prints the same note.

Nothing is blocked, because an approved overrun is an ordinary fact of a job and a change order is how it becomes legitimate. What this prevents is the lender being the first person to notice one.

A cost code and the lender line it rolls into are reported separately. One lender line usually gathers several cost codes, so a code can be well past its own number while the line it rolls into is still inside the lender's.

What a draw line cannot be

A draw line cannot be negative. A credit is recorded where it came from: a change order that lowers the cost code, or a repayment against the loan. Clearing the field still removes the line, which is a different statement from typing a zero into it.

What locks when a draw is funded

A funded draw is a record of money that moved, and a voided one is a record that nothing was advanced. Neither takes another line: the entry sheet renders read-only for both, and a save is refused if one arrives anyway.

Everything downstream of a draw's lines moves when one changes, which is the reason. The loan's outstanding balance, the in-balance test, the next draw's prior column, and the package, which re-exports under the same filename and so replaces the copy the lender already has.

A submitted draw stays editable. A submission that comes back for correction is the ordinary case, and it returns to draft to be corrected. Open a new draw for anything still to be requested, or void the funded one if it was wrong.

What the loan is treated as owing

The outstanding principal behind a payoff is a balance: every funded draw on each loan, at the amount approved on each line, less the repayments recorded against that loan as of today. A draft has not been sent, and a voided draw was withdrawn, so neither is principal and neither pays a lender out of a lot closing. A voided repayment is not a repayment.

The caption beside the sweep states what has been repaid and the date of the last repayment, so the figure reads as the balance the ledger holds rather than as the gross of everything advanced.

Recording a repayment

Principal paid back by hand is recorded in the Repayments panel on the draws page: the loan, the amount, the date it was paid and a note. It needs money access at edit. A repayment that would take the loan's balance below zero is refused, and so is one dated in the future, because a payment that has not happened is a plan rather than money that moved.

A repayment is voided rather than deleted, and voiding one puts the amount back onto the lender's claim at the next closing. That asks money at approve and the approval ceiling on the amount, the same rule that applies to un-funding a draw. A lender payoff recorded at a lot closing appears in the same panel, marked as paid at a closing; it is changed on the closing ledger, and voiding the closing voids it.

Interest is not recorded here. A repayment is principal only, and what the lender charged on the balance is the books' business.

A document is read into the ledger once

An invoice or a lien waiver read out of a document becomes a proposal, and accepting the proposal is what puts it in the ledger. Reading the same document again proposes nothing once it has been accepted, or once an invoice already carries it, and accepting one proposal twice in two tabs files one bill and tells the second tab so.

Dismissing a proposal is not a filing. A dismissed document can be read again, which is how somebody corrects a dismissal.

Which lines appear

A retired cost code leaves the entry sheet, because it takes no new postings. The exception is a retired code that already carries a figure on this draw. That line stays and stays editable, because dropping it would hide a request that is still in the totals above and still in the requisition the lender receives.

The four statuses are a lifecycle

A draw is a draft while it is being built. It goes out as submitted, comes back to draft if it needs correcting, and becomes funded when the lender's money lands. Any of those can be voided. The status menu offers the moves the draw can actually make from where it is, rather than all four and a refusal.

Funding is the money landing, so it asks for approve on money, not edit, and it asks the approver's limit against the total of what the draw's lines are requesting. Funded is offered only to somebody who holds that level. Voiding a funded draw asks the same level, because withdrawing the statement that money landed is the same decision in the other direction.

A funded draw is voided rather than edited back into a draft. Returning a draw to draft clears its submission date and leaving funded clears its funding date, so no row carries a date describing a state it is no longer in.

Required documents

The checklist at the bottom is the gate on the package. An item that blocks is marked as blocking, and the lender package refuses to render while a blocking item is outstanding.