Business funding for general contractors
General contractors carry payroll for their own crew and their subs long before an owner's draw or a holdback release arrives. Add a bonding company watching your balance sheet, and most GCs end up choosing between a handful of tools rather than one.
- One application, several lenders
- No credit pull to see your options
- No fee to you, ever
Common funding needs
- Paying subcontractors before a progress draw arrives
- Covering payroll across several jobs at once
- Meeting bonding company working capital requirements
- Buying materials ahead of a draw schedule
- Financing trucks and site equipment
- Bridging a holdback released months after completion
What usually fits
Products that usually fit
- Invoice factoring turns an approved draw or a commercial receivable into cash now instead of in 30 to 60 days.
- Line of credit for paying subs and materials between draws, reused job after job.
- Term loan for a planned expansion into larger contracts.
- Equipment financing for trucks, trailers and site equipment.
Compare term loans, lines of credit, cash advances and equipment financing side by side →
Illustrative example
A worked example
A GC has $90,000 in an approved progress draw sitting with the owner for 45 days. Factoring it at an illustrative 90% advance releases about $81,000 in days. At an illustrative fee of 2% for that period, the fee is $1,800, with the remaining $7,200 paid out once the owner settles.
The same gap covered by a line of credit at an illustrative 10–20% a year would cost roughly $1,125–$2,250 for the 45 days, but only if the limit is approved before the job starts.
Illustrative example only, not an offer or a quote. Rates, fees and terms are set by each lender and depend on your business. Fees are not included unless stated.
Underwriting
What lenders look at
- Contracts, change orders and draw schedules in hand
- Bonding capacity and any bonding company covenants
- Holdback and retainage owed to you across active jobs
- Monthly deposits and how they line up with payroll timing
- Workers' compensation and liability coverage current
- Owner credit and years running the company
Honestly
Who this is not for
- A GC with no completed contracts or bonding history yet
- Funding a job that is already underwater on its budget
- Stacking short-term advances across multiple jobs at once: the payments compound fast
If borrowing does not make sense, we will say so.
Are you a match?
Lender network minimums
Close but not quite there? Apply anyway and we will tell you honestly what is possible.
*Best available terms from lenders in our network. Every lender sets its own criteria; approval, amount and funding time are decided by the lender and not guaranteed.
| Time in business | 1 year+ |
|---|---|
| Monthly bank deposits | $20,000+ |
| Credit score | 500+ |
| Bank account | Business |
| Fee to you | $0 |
| Credit pull to start | None |
FAQ
General contractors funding questions
Can a bonded contractor use invoice factoring?
Often, yes, but tell your bonding company and check your bond agreement first: some restrict assigning receivables. We flag this before referring you anywhere.
Does a line of credit affect our bonding capacity?
It can. Sureties look at your balance sheet and working capital. A line of credit used and repaid regularly is usually viewed differently than a maxed-out one. Ask your surety directly.
Can we finance a holdback that hasn't been released yet?
Some factoring companies will advance against holdbacks close to release; most will not touch retainage held for a year or more. Tell us the terms and we will say what is realistic.
Do you work with GCs who sub out most of the work?
Yes. Lenders mainly care about your contracts, draw schedule and deposits, not whether the labour is your own crew or subcontracted.
Guides
Guides for general contractors
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Where we work: all US states · all Canadian provinces
See your options
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