Construction
Fund mobilization, manage retainage, and bridge progress payment timing, without the cash flow squeeze that delays or kills profitable projects.
Capital that understands construction cycles and moves at project speed.
The challenge
You run five active projects simultaneously. Each has a different GC, different payment schedule, different retainage terms, and different subcontractor obligations. Cash flows in from one project while it flows out to mobilize another. A single delayed progress payment on one job cascades across the others.
A $2M commercial project requires $400K in mobilization costs before the first application for payment. Subcontractors need progress payments within 30 days. The GC pays applications on a 30-45 day cycle. Retainage holds 10% until final completion, 12-18 months from mobilization. Across five projects, retainage alone locks up $800K-$1.2M in capital you have earned but cannot access. Meanwhile, bonding capacity depends on working capital ratios that these timing gaps erode.
Your Costs Are Upfront
Your Revenue Comes Later
The result
Five concurrent projects. Five different cash flow timelines. One bank line that does not grow fast enough. Bonding capacity shrinks as working capital ratios tighten. The contractor who wins work but cannot mobilize it loses the contract, the past performance record, and the bonding relationship.
Sound familiar?
Awarded $2M commercial project requiring $300K mobilization, equipment, materials, labor, before first progress payment in 45 days.
GC or owner consistently pays progress payments at 60+ days instead of contractual Net 30. This delay cascades through subcontractor payments and creates cash crisis.
Working on 5 concurrent projects with 10% retainage held on each. $250K in retainage won't be released for 6-12 months.
Solution Retainage financing advances 70-85% of held retainage, providing immediate working capital months before final payment.
Managing 8 active projects simultaneously, each with different payment schedules, retainage, and cash needs. Running out of capital to mobilize new work.
Public works project with federal or state agency. Payment timing even slower than private work (Net 45-60), plus retainage and compliance requirements.
Opportunity to bid larger projects requires owning rather than renting equipment, but don't want to deplete $400K in working capital.
The toolkit
Different construction challenges require different financing tools. Here's what works best for contractors:
In practice
Commercial GC Mobilization
State Highway Contractor
Specialty Subcontractor Growth
Equipment Purchase
Tell us a little about your projects, payment terms, and retainage and we'll come back with real numbers: advance rate, fee, and timeline.
Same-day preliminary answer
The difference
Unlike businesses that invoice after delivery, contractors must fund significant costs before first payment, mobilization, materials, initial labor. Banks often underestimate this upfront capital requirement.
Retainage is standard in construction but devastating for cash flow. $2M project with 10% retainage means $200K locked up until final completion, potentially 12+ months. This compounds across multiple projects.
Even with contractual Net 30 terms, payment timing varies wildly. GCs wait for owner payment. Owners delay applications. Payment can stretch to 60-90 days regardless of contract terms.
Subs need payment within 30 days or they'll stop working (or lien the project). Contractors can't wait for slow GC/owner payment to pay subs. This creates constant cash flow pressure.
Some months have 3 progress payments. Others have none. Project starts and completions don't align evenly. Traditional lenders want steady, predictable cash flow, construction is inherently lumpy.
Who we serve
Office, retail, hospitality, multifamily. General contractors and subcontractors serving commercial developers and owners.
Common needs Progress payment factoring, mobilization funding, equipment financing
Custom homes, production builders, remodeling. Contractors serving homeowners, developers, and property managers.
Common needs Purchase order financing, equipment leasing, short-term facilities
Highways, bridges, infrastructure, utilities. Contractors serving DOTs, municipalities, and utilities.
Common needs Government contractor financing, retainage advances, equipment financing
Manufacturing facilities, energy projects, plants. Contractors serving industrial owners and energy companies.
Common needs Large ABL facilities, progress payment financing, equipment financing
Electrical, plumbing, HVAC, concrete, steel. Subcontractors serving general contractors across all sectors.
Common needs Invoice factoring, equipment financing, flexible facilities
Getting started
Tell us about your construction business, typical project sizes, payment terms with GCs/owners, and current cash flow challenges. We'll discuss which financing solutions fit.
Provide information about current projects, typical progress payment schedules, retainage structures, and customer payment history. We need to understand your project cycle.
We'll review your GC/owner creditworthiness and payment history. For project-specific financing, we'll assess contract terms and payment structures.
If approved, we'll provide clear terms showing how the facility works, advance rates, and how you'll access capital throughout projects.
For mobilization: funding before project start. For progress payments: funding upon application submission. For retainage: immediate advance against held amounts.
Typical timeline: Most contractors are funded within 5-7 business days.
Common questions
Yes. We can provide mobilization capital upfront for materials, labor, and equipment needs before first payment. This is often structured as purchase order financing or specialized construction facilities.
We advance 70-85% of retainage amounts currently being held by GCs or owners. When retainage is released at final completion, we're repaid. You get working capital months before final payment.
For notification factoring, yes, they're notified and make payments to the factor. Many contractors prefer this because it professionalizes collections. For non-notification structures, they pay you directly.
Yes. In fact, slow-paying GCs are exactly why contractors need factoring. We convert their applications to immediate cash regardless of their actual payment speed. You're not held hostage by slow payers.
We have specialized government contractor financing with Assignment of Claims expertise. Public works projects have unique requirements (AoC filing, FAR compliance, etc.) that we understand and handle routinely.
Absolutely. Asset-based lending or factoring facilities can cover your entire project portfolio. As projects start and complete, the facility adjusts to your current receivables and retainage balances.
We coordinate with sureties regularly. Some financing structures actually improve bonding capacity by improving working capital ratios. We'll work with your surety to ensure compatibility.
We work with both GCs and subcontractors. For subs, we evaluate the GC's payment history and creditworthiness. Many successful subs use our financing to manage GC payment timing.
Similar cash flow challenges, production costs precede customer payment. Working capital solutions for manufacturers.
Learn moreSpecialized financing for federal, state, and local contractors beyond just construction. Contract mobilization and management.
Learn moreInventory and payment timing challenges. Solutions for distributors managing vendor and customer payment gaps.
Learn moreWhether you're mobilizing a new project, managing progress payment timing, or accessing locked-up retainage, we understand construction and can help. Let's discuss your specific situation.
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