Signal
Milestone Funding
Construction Loan DrawMilestone-based funding with inspection verification. Funds only released when work is verified complete, reducing draw fraud and automating disbursement.
Coinbax Controls Used
This concept leverages the following programmable controls to create a secure, compliant payment flow.
Escrow Hold
Time-Based LocksFull loan amount locked in tranches
Inspector Verification
Conditional ReleaseOn-site inspection and work validation
Lien Waiver Collection
Conditional ReleaseContractor/subcontractor waiver verification
Milestone Validation
Conditional ReleaseVerify draw conditions and completion percentage
Approval Gate
Multi-Party AuthLender approval per milestone
Use Case Example
Scenario
Commercial Building Development Funding
- 01
The Challenge
A commercial lender funds $20M construction projects through monthly draws. Coordinating inspector sign-offs, lien waivers, and fund releases takes 2-3 weeks per draw, delaying projects.
- 02
The Solution
Inspectors submit milestone approvals through mobile app. Once conditions are met (inspection passed, waivers collected), funds release automatically to the contractor. All documentation is immutably recorded.
- 03
The Result
Draw processing reduced from 3 weeks to 3 days, project timelines shortened
Ideal for
For lenders who release each draw against verified progress
Construction Lenders
Automate draw management and reduce operational overhead while maintaining full control over disbursement conditions.
Commercial Real Estate
Manage complex multi-phase development projects with milestone-based funding tied to construction progress.
Project Financing
Structure draws around project milestones with built-in verification gates and multi-stakeholder approval workflows.
Development Firms
Streamline contractor payments with programmable releases that align funding with verified work completion.