Project Startup Costs
Mobilizing a new project — equipment, materials, labor, permits, bonds — requires significant capital outlay before the first progress payment or draw request is submitted.
Industry
Capital structured around project timelines, not bank timelines.
Construction cash flow is project-driven — mobilization costs hit before the first draw, retainage sits locked for months, and milestone payments arrive on the GC's schedule. We structure facilities to match.
Capital pressures
Where construction companies feel it most.
Project-based cash flow creates unique capital gaps. You're spending before you're billing, billing before you're paid, and 5—10% of every contract is held back as retainage. These are the pressure points.
Retainage Lockup
5—10% of every contract value is withheld as retainage and often not released for months after substantial completion. On a $10M project, that's $500K—$1M tied up indefinitely.
Milestone & Draw Timing
Progress payments are tied to milestones, inspections, and GC approval cycles. Even when work is completed on schedule, payment may lag 30—60 days behind the billing period.
Upfront Material Purchases
Lumber, steel, concrete, electrical — material suppliers expect payment on delivery or net-30 terms, but the project draw that covers those materials may be weeks away.
How we evaluate
Underwriting built for project-based businesses.
Construction companies don't fit neatly into traditional lending models. Revenue is lumpy, receivables are tied to project milestones, and cash needs spike at project mobilization. We evaluate your backlog, billing history, retainage outstanding, bonding capacity, and customer mix — not just your balance sheet.
A GC with $40M in backlog, $3M in outstanding retainage, and three active projects has a quantifiable capital structure. We map facilities to the actual rhythm of your work — how projects overlap, when draws arrive, and where the gaps fall. See how one contractor mobilized two municipal projects simultaneously with $1.3M in bridge capital.
For a detailed model of how procurement, billing approval, payment timing, and retainage can change the cash profile of a major infrastructure award, read From Megawatts to Working Capital.
- Active project backlog, contract values, and expected draw schedules.
- Retainage outstanding — amounts, expected release dates, and customer history.
- Bonding capacity and current surety relationships.
- Subcontractor and material vendor payment obligations and terms.
Common facility structures
How construction capital is typically structured.
Most contractors benefit from facilities that align with project cycles — capital that's available when mobilization demands it and repays as draws come in.
Line of Credit
Draw working capital as projects mobilize, repay as milestone payments arrive. Ideal for covering payroll, materials, and subs between progress payments.
Asset-Based Lending
For contractors with meaningful receivables and equipment. Availability tied to your asset base — contract receivables, progress billings, and owned equipment.
Equipment Financing
Excavators, cranes, loaders, and specialized equipment financed against asset value. Structured around useful life with terms matching your equipment needs.
Term Loan
Fixed-term capital for larger investments — new divisions, geographic expansion, yard buildout, or acquisitions that don't fit a revolving structure.
Typical profile
The contractors and trades companies we work with most.
$5M—$200M in Annual Revenue
General contractors, specialty subs, mechanical/electrical contractors, and civil construction firms with active project backlogs.
Project-Based Cash Flow
Revenue tied to milestones, progress billings, and draw schedules — not recurring monthly invoices. Cash needs spike at mobilization and taper as payments arrive.
Retainage & Seasonal Patterns
5—10% retainage holdbacks on every contract, sometimes held for months. In some regions, outdoor work slows significantly in winter months, adding a seasonal cash-flow dimension.
Market outlook
Florida contractors face a distinct cash-conversion cycle.
Florida construction demand can create attractive backlog, but operators still need liquidity for mobilization, retainage, insurance deductibles, labor availability, and project timing. Our Florida Construction Capital Outlook explains how those pressures affect commercial GCs, subcontractors, remediation contractors, and developers.
The outlook connects market conditions to practical capital structures, including lines of credit, asset-based lending, equipment financing, and bridge capital.
Go deeper
Construction capital, situation by situation and trade by trade.
The cash problems every contractor knows
Retainage financing · Payroll between draws · Increasing bonding capacity · When the bank declines the line increase
Capital by specialty trade
Electrical contractors · HVAC companies · Roofing companies · Plumbing companies · Paving companies
The full working capital picture
Working capital for construction companies — mobilization, factoring mechanics, the subcontractor financing landscape, and the structures that fit each, in one place.
Let's structure capital around your project pipeline.
Start with a consultation. We'll review your backlog, retainage position, and cash-flow timing to identify the right facility. We serve contractors in New York and nationwide.