Working capital built for construction contractors
Cover payroll, materials, and sub payments while waiting for progress draws and final retainage.
Cover payroll, materials, and sub payments while waiting for progress draws and final retainage.
$10,000 – $2,000,000
Most construction working capital deals run $50K–$500K — enough to cover payroll for a single large job or maintain operations through a slow winter quarter.
As fast as 6 hrs
Approval and funding timeline for construction working capital.
Construction has a structural cash flow problem most other industries don't face. You bid the job. You start the work. You pay your crew weekly. You pay material suppliers on Net 30. You pay subs as you can. And you don't see meaningful payment from the owner until your first progress draw — typically 30–45 days into the project — with retainage (5–10% of contract value) held back until final acceptance.
The result: you can run a profitable business and still hit cash crunches almost every project cycle. Working capital financing for construction exists specifically to bridge this gap. See working capital options →
The fastest option. Approval based on monthly revenue from your bank statements rather than personal credit or detailed financials. 6+ months in business, $15K+/month revenue, FICO 500+. Funding in 1–2 business days. Best for time-sensitive cash gaps you need to close this week.
The most flexible long-term option. Pre-approved credit limit you can draw against as cash gaps appear, then repay as progress payments come in. Pay interest only on what's drawn. 12+ months in business, $100K+ annual revenue, FICO 625+. Approval takes 15–30 days but draws are instant once the line is set up. Explore lines of credit →
If your cash flow problem is specifically that owners owe you money on progress payments or completed work, construction-specialty factoring advances 80–90% of approved invoices. Approval depends on the owner's credit, not yours, which makes factoring accessible to contractors with weak personal credit but strong project pipelines. Learn about invoice factoring →
For established contractors with 2+ years of clean financials, SBA 7(a) supports working capital up to $5M with 10-year terms. Slow (60–90 days to fund) but lowest-cost long-term option. Best when you have visibility into ongoing cash needs and time to plan ahead. See SBA process →
Bonding capacity is one of the biggest constraints on construction growth. Surety companies set your bonding capacity based on working capital and net worth — which means having more working capital directly increases the size of jobs you can bid.
The math: surety companies typically allow bonded backlog of 10–20× your working capital. A contractor with $200K of working capital can typically bond $2M–$4M of total backlog. Adding $300K of working capital via a line of credit increases bonding capacity to $5M–$10M of backlog.
This is why working capital financing is often a strategic decision for construction contractors, not just a tactical one — it directly enables larger contracts and faster growth.
Construction lenders understand seasonality. Most underwrite based on 12-month rolling average revenue rather than month-to-month variation, and many will structure repayment around your seasonal pattern (lower payments in winter, larger payments in peak season).
If your construction business is heavily seasonal (Northeast contractors, snow removal contractors, seasonal landscaping), specifically ask about seasonal repayment structures during application. Most lenders offer them but don't advertise prominently.
For more on the broader working capital landscape, see our working capital guide.
Revenue-based advances fund in 1–2 business days for clean applications. Lines of credit take 15–30 days to set up but instant draws afterward. Invoice factoring takes 5–7 days to set up the relationship and then 24–48 hours per invoice. SBA loans take 60–90 days. For an immediate cash gap, revenue-based advances are usually the only realistic option.
Yes, with caveats. Active IRS tax liens generally must be resolved before SBA financing or bank lines of credit. Revenue-based advances and some invoice factoring providers can fund despite open tax issues if you have a payment plan in place. Be transparent during application — lenders find tax issues anyway during due diligence.
Yes. Most working capital products allow general business use including bonding deposits, premium payments, and collateral requirements. Some surety companies also offer their own working capital lines specifically for bonded contractors at preferential terms.
Surety companies look at working capital (current assets minus current liabilities) and net worth to set bonding limits, typically 10–20× working capital for total backlog. Adding working capital via a line of credit shows on your balance sheet and increases bonding capacity. Make sure your accountant categorizes the line of credit appropriately on financial statements provided to surety.
Depends on the underlying problem. If your cash gap is specifically that owners owe you money on completed work, factoring is usually cheaper and doesn't add long-term debt. If your cash gap is forward-looking (need to make payroll for a job that hasn't started progress payments yet), working capital is the right answer. Many contractors use both — working capital for the operational base, factoring for specific large project gaps.
One application, no credit impact, and a dedicated specialist to walk you through your options. See what you qualify for in minutes.