Classification of credit in house construction

I have a question regarding the division of loans during the house construction.

We financed the majority through a large bank and about 25% of the total amount through the [WI Bank]. This is a loan that is disbursed according to the progress of construction.

10% after completion of the base slab
40% after completion of the shell (without basement)
25% after completion of the interior finishing
25% after completion of the exterior facilities or moving in

We have already started construction, are currently at the upper floor masonry, and have covered the costs incurred so far with the large loan which is disbursed without problems. However, some trades want money already at the start of the work, or in between, and the exterior facilities will not yet be finished at the time of moving in, so I am afraid that we will lack the money from the [WI Bank] in between if we only receive it after completing the work.

How did you handle this? Unfortunately, I have not found anything about this topic in any thread. I would be grateful for your tips.

Thank you!

Daniela

How did you handle this? Unfortunately, I haven't found anything about this topic in any thread. I would be grateful for your tips.

Wouldn't it have been better to clarify this before the financing? I would just talk to the bank.

Clarify with the respective bank and, if necessary, advance with equity capital, as far as possible. As already mentioned, this should actually be resolved before the loan agreement.

We have partly financed through Bayern Labo, which also does not transfer invoices directly but instead pays directly into our account according to construction progress.

Here I was able to arrange partial interim payments after I communicated my problem there. So, for example, the 3rd installment once 15% and then another 10% when the shell construction is actually finished.

We have gotten through the construction period quite well this way.

Just call the contact person and explain the situation.

then simply switch to WI now and cash out there

Many funding programs for social housing have such disbursement conditions. I am surprised that your house bank and/or financing bank have almost never closed this gap in the financing. This is actually routine business for financing advisors.

Simply a "construction account" (usually a checking account/secondary account for other purposes, etc.) with a credit line / overdraft of 25% of the loan with a "disbursement delay" and the issue is settled. The conditions are admittedly terrible in such cases (usually somewhere between 5-7%), but it is only used temporarily until the respective disbursement.