A general contractor fronts crews, subs and materials, then waits on draws and retainage. Apply in five minutes; funding can arrive in as little as 24 hours.
Apply Now →On a commercial or trade project, the general contractor pays subcontractors, suppliers and its own crews well before the owner pays the contractor. The contract may allow a monthly pay application, and the owner may then take weeks to review it. Some of the money is held back as retainage until the project closes out. The general is effectively financing the project in between.
That is a normal feature of the business, and it scales: the bigger the job, the larger the amount fronted. A contractor who wins a bigger project than usual may find the win is the thing that strains cash.
| Stage | What the contractor has already paid | What is still owed to the contractor |
|---|---|---|
| Month one | Mobilization, temporary facilities, first-trade subs | Nothing yet; the first pay application is being prepared |
| Month two | Subs and suppliers for month-one work, plus new work underway | Month-one pay application, in review |
| Month three | Another month of subs and payroll | Month-two application, plus any retainage held |
| Closeout | Final subs, punch-list labor | Final payment and retainage release |
A job can be profitable on paper and still have a two-month stretch where outflows exceed inflows.
Even when a job is billed correctly, the contractor's own staff and obligations keep moving. Payroll is weekly or biweekly. Quarterly unemployment wage reports and taxes are due to the Texas Workforce Commission by the last day of the month after the quarter ends. Private Texas employers can choose whether to carry workers' compensation, and many contractors do because owners and general contractors on larger projects often require it as part of their contracts. That is a regular cost, paid whether or not a pay application has been approved.
For illustration only, with round numbers unrelated to our terms: a contractor with a $400,000 job pays $60,000 in a month between crew wages and subs, and expects payment of the monthly application about forty-five days later. The numbers are routine, but the timing requires cash on hand.
We write about commercial and trade work here. Residential remodeling is a different category with its own restrictions among funders, and this page does not suggest otherwise. If your work is commercial tenant improvements, light industrial, specialty trades or public-sector subcontracting, the cash-flow pattern above is the one you recognize.
Sole proprietors can apply. The application takes about five minutes and uses a soft credit pull. Funding runs from $25,000 to $5,000,000, and can arrive in as little as 24 hours.
Typically payroll, materials, subcontractor payments and equipment while you wait for pay applications to clear. Funding is $25,000 to $5,000,000 and can arrive in as little as 24 hours.
Retainage is money earned but not yet paid. Working capital can cover costs in the meantime.
Commercial and trade contractors can apply.
Yes. Sole proprietors can apply, and small crews are typical applicants.
The application uses 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
