Working Capital for Construction
Materials paid upfront. Labor paid weekly. The GC pays 60 days after completion. Construction working capital bridges these structural timing gaps that exist in every project, enabling you to take on work without cash flow constraints limiting growth.
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Working Capital in Construction
Construction working capital must account for project-based revenue, extended payment cycles, material costs, and the timing gaps that create constant cash flow pressure.
The Payment Cycle Gap
Materials suppliers want payment within 30 days. Crews need weekly paychecks. GCs and clients pay 30-60+ days after work completion. This structural gap defines construction finance.
Project Startup Costs
New projects require materials, equipment mobilization, and labor before any payment arrives. Each new project increases working capital requirements.
Margin Reality
Construction margins typically run 5-10%. Working capital costs must be factored into bids and project economics.
Seasonal Patterns
Many markets have seasonal slowdowns. Working capital helps bridge periods of reduced revenue while maintaining core operations.
Construction Working Capital Challenges
Project timing, payment cycles, and material costs create constant working capital pressure.
Payment Timing Gap
Materials and labor paid now. Project payment arrives in 60 days. The structural gap is constant in construction.
Project Startup Capital
New contract requires materials, equipment, and labor upfront. Cash position limits how many projects you can pursue.
Material Cost Management
Locking in material prices requires upfront purchase. Waiting risks cost increases that erode margins.
Payroll Pressure
Crews expect weekly pay regardless of project payment timing. Payroll cannot wait for receivables.
Seasonal Cash Flow
Winter slowdowns or seasonal patterns create periods with reduced revenue but continued overhead.
Growth Constraints
Cash position limits project capacity. Working capital enables taking on more work.
Working Capital Application Process
From application to funding in days, not weeks.
Application
Complete online application with business information and capital needs.
15 minutes
Documentation
Provide bank statements showing project deposits and business revenue patterns.
Gather documents
Evaluation
We review financials understanding construction operations and project-based revenue.
24-72 hours
Funding
Accept terms and receive funds deposited to your business account.
Same or next day
Cash Flow Support for Contractors
Working capital structured for construction operations provides the bridge between project costs and payment. Fund materials, cover payroll, and take on new work without cash constraints.
Project Bridge
Bridge the gap between project costs and payment. Fund operations while waiting for receivables.
Materials Funding
Purchase materials when needed without depleting operating cash.
Payroll Support
Ensure crews get paid on time regardless of project payment timing.
Fast Decisions
Construction timelines do not wait. Get capital decisions in hours to days.
Seasonal Support
Bridge seasonal slowdowns while maintaining core crew and equipment.
Growth Enablement
Take on additional projects. Working capital removes cash constraints on growth.
Working Capital Applications
Common scenarios where construction working capital makes the difference.
Project Startup
Materials, mobilization, and initial labor for new contract.
Typical funding: $25K-$100K
Materials Purchase
Lock in material prices. Stock inventory for upcoming projects.
Typical funding: $20K-$75K
Payroll Bridge
Cover crew payroll while waiting for project payment.
Typical funding: $15K-$75K
Seasonal Bridge
Cover operations during predictable slow periods. Maintain key crew.
Typical funding: $25K-$100K
Multiple Projects
Fund multiple simultaneous projects. Scale operations capacity.
Typical funding: $50K-$200K
Equipment Support
Major repairs, attachments, or operational equipment needs.
Typical funding: $15K-$50K
Working Capital Options for Construction
Understanding available options for contractor working capital.
| Feature | Working Capital Loan | Bank Line of Credit | Invoice Financing |
|---|---|---|---|
| Speed | 24-72 hours | 30-60 days | 24-48 hours |
| Construction Understanding | High | Low | High |
| Payment Structure | Fixed schedule | Interest on draws | When invoice pays |
| Collateral | Often none | Usually required | Invoices |
| Based On | Business revenue | Credit + financials | Specific invoices |
| Best For | General capital | Ongoing needs | AR acceleration |
| Total Cost | Moderate | Lower | Moderate |
| Flexibility | Any purpose | Any purpose | AR only |
Working Capital Requirements
General requirements for construction working capital loans.
Operating History
Established construction business with consistent operations.
1-2 years preferred
Business Revenue
Demonstrated revenue from completed projects.
$200,000+ annual
Bank Activity
Business bank account showing project deposits.
4+ months statements
Cash Flow Pattern
Deposit patterns demonstrating ability to handle repayment.
Consistent activity
Operational Status
Currently operating with active or upcoming projects.
Active operations
Current Obligations
Current on existing business obligations without active defaults.
No current defaults
Construction businesses are evaluated with understanding of project-based revenue and seasonal patterns.
Real Results
Mountain View Builders
Residential Contractor, Montana
The Challenge
Mountain View won two large residential contracts requiring $120,000 in materials and labor before any draws would arrive. Cash position could support one project but not both.
The Solution
We structured $85,000 working capital based on their project history and current contracts. Payments aligned with expected project draws.
The Result
Both projects completed successfully. Working capital enabled taking on 40% more revenue than cash position would have allowed. Financing repaid from project proceeds.
“We had the crews, the equipment, and the contracts. We just needed working capital to fund both projects. Without financing, we would have had to pass on one.”
Construction Working Capital Data
Industry benchmarks for contractor working capital needs.
Working Capital Advantages for Contractors
Why contractors choose working capital loans.
Project Capacity
Take on more projects. Remove cash constraints on growth.
Payroll Security
Never stress crew payroll. Bridge project payment timing.
Material Timing
Purchase materials when needed. Lock in prices.
Seasonal Bridge
Cover slow periods knowing busy season will recover.
Speed to Capital
Get cash when projects need it. Construction timing is everything.
Bid Confidently
Know you have capital to execute projects you bid.