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 → See how it works for contractors
  • 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.

Every situation
Worked examples

The numbers, in your units.

Worked example

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.

More worked examples on the construction hub

How it works for construction

From the gap to funded, in four steps.

The whole process
  1. 01

    Tell us the job and the gap

    Contract value, the draw schedule, what is due before the next pay app lands. Three minutes on the form, no credit pull.

  2. 02

    Send three months of statements and the pay app

    Bank statements show the deposits; the approved pay app or signed contract shows the money on its way. We read both the way a partner will.

  3. 03

    Compare the options in dollars

    An advance sized to the draw, a line of credit, equipment financing — each as amount, total payback and remittance, with the APR-equivalent beside any factor rate.

  4. 04

    Fund, remit, close out

    Funding usually lands within a business day of signing. The remittance is set to end as the draw arrives, with a reconciliation clause if the owner is late.

What a partner looks at

What a file from a construction business needs to show.

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

What a partner needs to see

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
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.

More questions on the construction hub

The library

Guides for contractors, answer first.

The first guides are being reviewed and will appear here shortly.

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 →