On a job site, labor and materials are paid weekly. The contractor is paid when a draw is approved. Working capital fills the space between.
Apply Now →A contractor on a larger project typically submits an invoice or a draw request tied to completed work. That request goes through review, sign-off and then payment, which can take weeks. In the meantime, the crew is paid every week, the materials supplier wants payment, the equipment rental is running and insurance premiums are due.
Subcontractors are further down that chain. They may wait for the general contractor, who is waiting on the owner or lender. A delay at the top ripples through every business below it.
| Cost | Paid when | Recovered when |
|---|---|---|
| Crew wages | Weekly | When the draw is paid |
| Materials | Order or delivery | When the draw is paid |
| Equipment rental | Per day or week | When the draw is paid |
| Insurance, bonding, permits | Before the job starts | Spread across the job |
| Retainage, if withheld | Held back by the owner | At project completion |
Retainage, the portion of each payment that an owner holds until the project is complete, is a particular strain on small firms because the work is done but the cash is delayed.
A contractor who wins a larger job often needs to buy materials in bulk, hire more people and rent bigger equipment, all before the first draw. Winning the contract is the easy part. Financing it is where many contractors hit a limit, and the temptation is to take smaller jobs with faster payment, or to stretch supplier credit past what the supplier is willing to give.
Working capital can help contractors accept a profitable contract they would otherwise pass on, or pay suppliers promptly to keep better terms.
Upstate winters slow exterior work, while the metro area stays busier but has higher labor and permit costs. Weather delays push schedules, and a delayed job still costs money in wages and rentals. Many contractors keep a small reserve for these stretches, and the ones without one are the ones who feel it first.
Equipment is the other recurring need: trucks, trailers, tools, lifts and small machinery wear out and must be replaced on the contractor's schedule, not the project's.
Larger and public-sector projects often require insurance coverage, bonding capacity or prequalification. These carry upfront costs, such as premiums and collateral, and they become more important as a contractor grows. A contractor might need to show the capacity to carry a project before being invited to bid, and that capacity is partly a question of cash on hand.
The work itself has its own cash cycle. Mobilization comes first: permits, deposits for materials, temporary facilities and equipment delivery. Closeout comes last, with punch lists, final inspections and the release of retainage. At either end, the contractor is out of pocket for work that has not yet been paid in full.
A contractor wins a commercial fit-out that will need about $120,000 in labor and materials before the first draw comes through. The job is sound and the client is reputable, but the contractor's cash is committed to two other jobs. Without a bridge, the contractor might decline the work. The numbers are round, invented and not our terms.
We fund $25,000 to $5,000,000, with funding possible in as little as 24 hours. We consider FICO 500+, use a soft credit pull and do not require tax returns. We ask for about three months of business bank statements. Sole proprietors can apply.
Yes. Subcontractors and general contractors can apply.
Statements show actual deposits. Mention retainage if it explains gaps.
Working capital can be used for materials and payroll. State the use.
We ask for about three months of business bank statements. Tax returns are not required.
Yes.
Three months of business bank statements and a 5-minute application. FICO 500+ considered. $25,000 to $5,000,000, funded in as little as 24 hours.
Apply Now →It takes about two minutes and it will not affect your credit score.
No obligation • No impact to your credit score
