A contractor's money moves on a draw schedule, while crews and suppliers are paid on a weekly one. A revolving line is one way to cover the days between the two.
Apply Now →On most commercial and trade jobs, you do the work, submit a pay application, wait for approval, and then wait again for the check. Meanwhile the crew was paid Friday and the supplier's invoice has a due date. By the time the owner or general contractor pays, you may be two payrolls and a materials bill into the next stretch of work.
A revolving line is a good match for that pattern because you can draw when the bills land and repay when the draw clears, then use it again on the next job.
| Week | What happens | Cash position |
|---|---|---|
| 1 | Crew works; materials delivered on account | Payroll out, supplier invoice open |
| 2 | More payroll; pay application is prepared and submitted | Cash dropping, nothing in yet |
| 3 | Approval stage; supplier invoice comes due | Lowest point in the cycle |
| 4-5 | Draw is paid, less any retainage | Cash returns, partly |
The low point in week 3 is where a line earns its keep. Without it, an owner either delays a supplier or short-funds payroll, and both have costs.
Texas Property Code section 28.004 says that overdue amounts accrue interest from the day after the due date at 1-1/2 percent per month. That is a useful lever when a payment is late, but interest owed to you is not cash in the account today.
On lien rights, section 53.052 sets a deadline for filing a lien affidavit with the county clerk. For a non-residential original contractor, it is the 15th day of the fourth month after the month the work was completed. Calendar this date on every job, because a line of credit can keep you operating while you chase payment without letting the deadline slip. These notes are general information, not legal advice, and a construction attorney should confirm how they apply to your contract.
We fund $25,000 to $5,000,000, funded in as little as 24 hours, with a 5-minute application and a soft credit pull. Sole proprietors can apply, so independent trade contractors are not excluded. Start your application when you have a list of your current jobs.
Residential remodeling is a category where some funders are restricted, so this page is written with commercial and trade work in mind, and we do not promise funding for any specific category. When you review an offer, ask about the repayment method and the total repayment, and make sure the amount leaves a margin even if a draw arrives a few weeks late.
Retainage is money withheld until a job is complete. It is earned but delayed, so your cash plan needs to account for it as well as normal pay cycles.
Under Texas Property Code section 53.052, a non-residential original contractor generally files by the 15th day of the fourth month after the month work was completed. Funding can keep you going while you act on that date. Confirm details with an attorney.
Usually no. Draw as bills come due, so you pay only for the money you use.
Yes, sole proprietors can apply. The application takes about 5 minutes with a soft credit pull.
Plan for it. Choose an amount that still works if the next payment arrives a few weeks after you expected it.
Three months of business bank statements and a 5-minute application. FICO 500+ considered. $25,000 to $5,000,000, funded in as little as 24 hours.
Apply Now →It takes about two minutes and it will not affect your credit score.
No obligation • No impact to your credit score
