General contractor uses Construction Finance to take on more projects.
"We were given all the information upfront, which really helped us make the right decision."
General Contractor
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Construction Finance

Construction Finance is for general or subcontractors that do work on commercial or government projects and require working capital to fund the project. Construction Finance proceeds are typically used to pay for materials and cover labor costs while the company waits to be paid by the owner. Construction companies will usually use Construction Funding in order to take on multiple projects at one time.

The most common types of construction funding are:

The type of Construction Finance that is available to a company will largely depend on the nature of the contracts. Subcontractors that are submitting monthly progress payments to general contractors will typically use Construction Factoring or Spot Factoring. General Contractors that have won a government contract will use Contract Finance or Small Business Loans.

Construction Finance lenders pay close attention to the accounts payable aging as suppliers in the construction industry have lien rights for materials supplied. Construction Finance programs will sometimes require that some of the funding proceeds go to pay suppliers in exchange for lien releases. Finance companies will also want to make sure that labor and union dues are kept up to date.

While there are several forms of Construction Finance available, each has its positives and negatives. In many cases more than one form of financing can be used to generate capital. Choosing the right working capital facility with the right lender can make all the difference.

Call us today at 561-299-1609 to discuss your Construction Finance options.

Framing subcontractor uses Construction Finance to fund payroll.

Framing Subcontractor

$1,000,000 Construction Finance

Concrete Subcontractor uses Construction Finance to fund new projects.

Concrete Subcontractor

$7,500,000 Construction Finance