New jobs cost money before they make it. This guide lays out the three places a contractor's cash goes before the first draw arrives and how to size what you need.
Apply Now →Winning a contract feels like good news, and for the bank balance it is bad news first. Mobilization, deposits on materials, permits, a crew you have to keep paid, and insurance certificates all come due before the first pay application is approved. A contractor who takes on two jobs at once has doubled that outlay in the same month.
Working capital is the money that covers that early stretch. It is not meant to fund a loss. It is meant to bridge a start-up gap you can already see on paper.
Add them for the first month of each new job. The total is the number to plan around, and it is usually larger than owners expect when they bid.
The Texas Workforce Commission expects quarterly wage reports and unemployment taxes by the last day of the month after quarter end. The Comptroller sets sales tax filers on a monthly or quarterly schedule and notifies them by letter. The annual franchise tax report is due May 15, or the next business day if that falls on a weekend or holiday. Workers compensation is optional for most private Texas employers according to the Texas Department of Insurance, but an owner who chooses to carry it has a premium to pay as well.
None of these dates move because a draw is late. Put them on the same calendar as your pay applications.
For illustration only: two jobs each need $15,000 of payroll and $10,000 of materials before the first pay application clears, plus $5,000 of mobilization between them. That is $55,000 outlaid before any draw. If the first draw is paid in six weeks, the plan needs to survive six weeks. These numbers are invented to show the arithmetic and are not our terms.
| Item | Job A | Job B |
|---|---|---|
| Payroll to first draw | $15,000 | $15,000 |
| Materials to first draw | $10,000 | $10,000 |
| Mobilization (shared) | $2,500 | $2,500 |
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. Apply here once you have a job-by-job number.
If you work in residential remodeling, note that it is a category some funders restrict, and we do not promise funding for it. This page is written for commercial and trade contractors. Repay from the draws the funding is meant to bridge, and keep a cushion in case the first one comes late.
The cost of getting a job started: equipment moves, permits, temporary services, safety gear and similar setup expenses.
By the last day of the month after quarter end, according to the Texas Workforce Commission.
The Texas Department of Insurance says private employers can choose to carry it and it is not required in most cases. Check your contracts, which may require it.
List payroll, materials and mobilization to the first draw for each job, then add a cushion for a late payment.
Yes, with a 5-minute application and a soft credit pull.
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
