Funding for General Contractors in All 50 States

How the money actually moves in general contractors

Revenue arrives here on its own terms: progress billing against a schedule of values, usually 30-60 days behind the work, with 5-10% retainage held until the project closes out. On margin, 8-15% net on hard-bid work, better on negotiated and design-build; the gap between draw and payroll is the whole problem.

The calendar matters too — bid season and backlog set the year; winter slows exterior scopes in the North and frees crews for interiors. A financing structure that ignores that calendar creates a payment obligation in the months the business is least able to carry one, which is how an otherwise healthy operation ends up refinancing at a worse price a year later.

Where capital goes in general contractors

Financing requests in this vertical cluster. These are the ones that come up most, and each one points at a different structure:

• Funding payroll and material buys between draws
• Mobilizing on a new award
• Bonding-adjacent working capital
• Buying equipment instead of renting it a third season
• Taking a larger GC contract without factoring the receivable

The use of funds is not a formality on the application — it is what determines whether a term loan, a line, or equipment financing is the honest answer. Matching them properly is most of the value a broker adds.

How a lender reads a General Contractor file

Lenders read the AR aging, the concentration of the top customer, and whether deposits track completed work rather than a single lump draw. Retainage sitting past 90 days is the number that gets asked about.

That is worth knowing before you apply, because the same business can look strong or marginal depending on which twelve months of statements are submitted and how the seasonality is explained. Bid season and backlog set the year; winter slows exterior scopes in the North and frees crews for interiors.

The financing that actually fits this industry

Not every product belongs in this vertical. These are the ones that do, and the reason each one earns its place:

• Revolving line of credit. Capital that sits available until you draw it, with interest on what you use. It is the right answer when the problem is timing rather than a purchase — the money arrives before the receivable does and replenishes when it lands.
• Term loan. A fixed amount on a fixed schedule. It suits a defined project with a return you can point to, and it is the cheapest structure to compare because the total cost is knowable on day one.
• Receivables financing. Capital advanced against invoices already issued. It converts a slow customer payment cycle into working capital without adding a fixed monthly payment to the business.
• Equipment financing. The equipment secures the financing, so approval leans on the asset and your cash flow rather than outside collateral. It also keeps a line of credit free for the things that cannot be secured.
• SBA loan. Longer terms and lower rates than most alternatives, in exchange for more documentation and a longer close. When the timeline allows it, it is usually the least expensive capital a business of this size can get.

What to have ready

A complete file gets a real answer quickly; an incomplete one gets a maybe. For most businesses in this industry that means:

• The last four months of business bank statements
• Your average monthly revenue and roughly how it splits across the year
• Any existing business debt, including advances and equipment contracts
• What the capital is for, specifically

Your credit is not pulled to look at options. It is pulled when you decide to move forward on a specific offer.