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A draw is an advance against future anticipated incentive compensation (commission) earnings. This form of payment is a slightly different tactic from one where an employee is given a base pay plus commission.

A draw schedule in a construction project outlines when the builder will receive payments?also known as draws?throughout the building process. When a bank is financing the project, the draw schedule is an agreement between the bank, the builder, and the customer.

Owner's draw: The business owner takes funds out of the business for personal use. Draws can happen at regular intervals, or when needed. Salary: The business owner determines a set wage or amount of money for themselves, and then cuts a paycheck for themselves every pay period.

With owner's draw, you have to pay income tax on all your profits for the year regardless of the amount you actually draw. The Internal Revenue Service (IRS) also requires that you pay your own self-employment taxes, Social Security and Medicare taxes, and estimated taxes as well.

In simple terms a loan drawdown is the release of funds under an agreement with a lender.

A Construction or Progress Draw mortgage advances funds in intervals as the house is being built. Depending on the lender, there are are typically 3-4 draws at predetermined milestones of the project (some lenders also allow an additional, up front Land Draw to help purchase the property as part of the same financing).

Typically, lenders measure time on draw requests starting and ending with what they can control ? from the time the draw request is received to the time the draw is approved. Lenders using a manual draw process report that it takes 5-7 days to turn around a draw request.