Construction · working capitalNovember 2026 editioninfo@sitedrawcapital.com
SiteDraw Capital
Working capital for construction

The draw is coming. Payroll is Friday. We fund the gap between the two.

Pay applications, retainage, net-45 owners and equipment deposits make construction cash flow lumpy by design. We size funding to the job and the draw schedule, not to a credit score, and put the full cost in writing before anyone signs.

Size a request to the job → Situations we fund
  • Sized to the pay app, not the FICO
  • Decisions in 24–48 hours from statements
  • Every cost in dollars before signing
The construction cash cycle

Where the money is, and when it isn't.

  1. 01

    Bid & mobilize

    Bonds, deposits on materials and equipment rentals go out before the first invoice exists.

  2. 02

    Work in place

    Labor and materials are paid weekly while the value sits on the job as work in place.

  3. 03

    Pay app submitted

    Billed monthly on AIA G702/G703. Owner and architect review takes 7–14 days before approval.

  4. 04

    Net-30 to net-60

    Approved draws pay 30–60 days later; on public work, longer. Pay-when-paid clauses push it further down the chain.

  5. 05

    Retainage held

    5–10% of every draw is held until substantial completion — often months after the work is done.

  6. 06

    Close-out

    Punch list, lien waivers and final retainage. The last 10% of the money arrives long after the last 10% of the work.

Situations we fund

What contractors come to us for.

Each one is sized to the job and the draw schedule. The guides go into the numbers; the rest lead straight to a request.

Worked examples

The numbers, in your units.

Example 1

Covering two payrolls while pay app #3 is in review

A mechanical sub on a $1.4M hospital renovation. Pay app #3 for $118,000 was submitted on the 1st; the owner's lender releases draws net-45 after approval, and 10% retainage is held on every draw.

The gap
Pay app #3 submitted$118,000
Retainage held (10%)−$11,800
Expected in 45–55 days$106,200
Payroll due before then (2 × $31,000)$62,000
Supplier invoice due in 10 days$24,500
Gap to cover$86,500
The funding
Advance sized to the gap$90,000
Factor rate1.22 (≈ 65–70% APR-equivalent over 4 months)
Total payback$109,800
Remittance$1,290 per business day, 85 days
Cost of the bridge$19,800

What the numbers say. The margin on the job is roughly $210,000. Paying $19,800 to keep the crew whole and the schedule intact is a decision the sub can make with the numbers in front of him — and the remittance ends weeks before pay app #4 lands. If the owner pays net-30 instead, a line of credit would cost less; we say so when it does.

Illustrative figures, not an offer. Terms depend on deposits, time in business and existing obligations; every option you receive is quoted as total payback in dollars.

Example 2

A skid steer deposit on a signed site-work contract

An excavation contractor wins a $380,000 site package. The rental on a second skid steer would run $4,200 a month for eight months; buying needs a $14,000 deposit the week the contract is signed, before any draw.

The gap
Contract value$380,000
First draw expectedDay 60
Rental over the job$33,600
Purchase price$68,000
Deposit needed now$14,000
The funding
Equipment financing$54,000 over 48 months
Monthly payment≈ $1,320 at 14% APR
DepositFrom the business, or a short advance repaid by draw #1

What the numbers say. Equipment financing is the cheaper tool here because the machine secures it; an advance only makes sense for the deposit, and only if the first draw is certain. Owning the machine after the job is the part the rental math never shows.

Illustrative figures, not an offer. Terms depend on deposits, time in business and existing obligations; every option you receive is quoted as total payback in dollars.

What a partner looks at

What a file from a construction business needs to show.

Within construction

  • General contractors
  • Mechanical & HVAC
  • Electrical
  • Plumbing
  • Concrete & excavation
  • Roofing & siding
  • Framing & drywall
  • Specialty subs

The four products, in one line each

Merchant cash advance

A purchase of a fixed amount of future receivables, remitted daily or weekly. Fast, sized to the draw, and worth understanding fully before you take it.

Funding in 1–3 days
Revenue-based financing

Remitted as a percentage of revenue, so slow weeks remit less. Suits seasonal trades and lumpy receivables.

Up to 12–18 months
Equipment financing

The equipment secures the financing, which usually means lower cost and longer terms than unsecured capital.

Terms of 2–7 years
Business line of credit

Draw what you need when the gap opens and pay for what you use. The right tool for a recurring gap, not a one-off.

Revolving
What a partner looks at

A construction file that funds

Time in business
6+ months; 12+ for draws over $150K
Monthly deposits
$25,000+ on average across the last three months
Backlog
Signed contracts, approved pay apps or purchase orders in hand strengthen every file
Existing positions
One open advance is workable; three is a conversation about consolidation first
Credit
500+ FICO considered; deposits and backlog weigh more
Trades
GCs, mechanical, electrical, plumbing, concrete, excavation, roofing, framing, specialty subs

Close but not quite? Ask. Deposits and what is on its way matter more than any single line.

Check your fit
Glossary

The trade's words, and what they mean for funding.

Pay application (pay app)
The monthly bill for work in place, usually on AIA forms G702/G703, reviewed by the architect and owner before payment.
Retainage
The 5–10% of every draw an owner holds back until substantial completion, as insurance against defects and liens.
Schedule of values
The contract broken into line items with a dollar value each; pay apps bill a percentage complete against it.
Pay-when-paid
A clause that lets a GC pay subs only after the owner pays the GC, pushing the owner's net-45 down the chain.
Lien waiver
A signed release of lien rights for a draw, conditional (on payment) or unconditional; owners require them with every pay app.
Work in place
Labor and materials already installed on the job but not yet billed or paid — the receivable before it is an invoice.
Questions contractors ask

Plain answers before you talk to anyone.

Can I get funding against an approved pay application?

Yes. An approved pay app is the strongest thing a contractor can show a funding partner: it proves work in place and a dated receivable. The advance is sized to the approved amount less retainage, and the remittance schedule is set so it ends before or as the draw lands.

Does retainage count as revenue when I apply?

Partners look at bank deposits first, and retainage has not been deposited yet. It counts as backlog: it shows money owed on completed work. Bring the schedule of values and the retainage ledger; some partners will fund against retainage due within 90 days.

What if the owner pays late and my remittance keeps going?

Ask for the reconciliation clause in writing before you sign. Most advance agreements let the remittance be reduced when deposits fall; a daily remittance that ignores a late draw is the single biggest risk in this trade, and we structure around it.

Is an advance cheaper than factoring my pay apps?

Usually not per dollar — factoring runs 1.5–4% per 30 days on the invoice, an advance costs more per month. Factoring needs an owner who will pay the factor directly, which many GCs refuse. The advance is faster and does not involve your customer. We show both when both apply.

Can I fund equipment and a draw gap at the same time?

Often, yes: equipment financing is secured by the machine and sits apart from a short advance sized to the draw. Stacking two advances on the same deposits is a different thing, and we will tell you when a file is heading there.

Will applying affect my bonding capacity?

The request itself does not. A surety reviews your balance sheet and working capital; a short-term obligation shows up there like any other. For bonded work, tell us the bond amount and we will size the funding so your working-capital ratio holds.

Bring us the job. We'll bring the numbers.

Start with the amount and the date it is needed. No obligation, no credit pull to begin.

Size a request →