Construction has cash flow problems traditional lenders don't understand. Progress payments arriving 60-90 days after expenses. Materials needed before mobilization. Payroll due Friday whether the GC has cut your draw or not. This guide walks through every funding scenario contractors actually face.
Mobilization capital — the #1 contractor funding need
Most construction projects require 30-60 days of self-funded operations before the first invoice goes out. For a $500K project, that's $40K-$80K of mobilization cost — materials deposit, crew payroll, site setup, permits, equipment rental. Working capital funding bridges this gap so you can take projects you'd otherwise have to pass on.
Equipment financing for contractors
Trucks, trailers, lifts, compressors, excavators, skid steers — equipment financing keeps your capital working while you spread the cost over the equipment's useful life. New or used equipment qualifies. Approval is faster than most loans because the equipment serves as collateral.
Payroll bridge when GC payments are late
Payment delays are routine in construction — it's not a question of whether but when. Bridge funding covers payroll, vendor payments, and operating costs while you wait on a late draw. Repay when the GC cuts the check. This is what 4-hour funding was made for.
Materials purchase capital
Lock supplier discounts on bulk material orders, hedge against price increases, or fund a large materials order for an upcoming project. Construction materials inflation has made this scenario more common — capital lets you buy ahead instead of paying spot prices.
Working capital strengthens your bonding profile
Sureties want to see cash. Strong working capital in your business bank account = better bonding capacity = ability to bid bigger projects. Many contractors use funding specifically to step up to larger work that requires bonding.