Lending

Milestone Funding

Construction Loan Draw

Milestone-based funding with inspection verification. Funds only released when work is verified complete, reducing draw fraud and automating disbursement.

COINBAX CONTROLS DrawRequested Escrow Hold InspectorVerification Lien WaiverCollection MilestoneValidation ApprovalGate TrancheReleased
View Scenario

Coinbax Controls Used

This template leverages the following programmable controls to create a secure, compliant payment flow.

Escrow Hold

Time-Based Locks

Full loan amount locked in tranches

Inspector Verification

Conditional Release

On-site inspection and work validation

Lien Waiver Collection

Conditional Release

Contractor/subcontractor waiver verification

Milestone Validation

Conditional Release

Verify draw conditions and completion percentage

Approval Gate

Multi-Party Auth

Lender approval per milestone

Use Case Example

Scenario

Commercial Building Development Funding

PROTECTED BY COINBAX DrawRequested InspectorVerification Lien WaiverCollection MilestoneValidation ApprovalGate TrancheReleased

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.

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.

Result: Draw processing reduced from 3 weeks to 3 days, project timelines shortened

Ideal For

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.

Ready to implement Milestone Funding?

Talk to our team about customizing this template for your specific payment workflows.

Get in Touch