Construction: how is a contractor’s file presented?
A contractor or trade business is presented from the payments that actually land in the account, long before the invoice is paid. The lender decides, signed contract or not.
Choose my amountThe answers
- I pay for materials and crews before I get paid: what fits?
- Two paths can be presented: a working-capital advance sized on your deposits, or factoring of the invoices you issue to general contractors and owners. The lender decides which it offers.
- Can holdbacks be factored?
- Usually not: a holdback is released later, under conditions the lender cannot control. Progress invoices for completed work are the ones that can be presented.
- Can I finance equipment or a vehicle for the crew?
- Yes. An excavator, a lift, a work truck or tools are presented as equipment financing, secured by the equipment itself.
- My deposits are irregular, one big payment per job: does that matter?
- Lenders expect lumpy deposits in construction. They read the period as a whole and ask what is signed and still to be invoiced.
What the lender looks at
- Actual deposits, month by month
- Progress payments, as they actually land in the account.
- Trend over the period
- A period that ends on signed work weighs more than one that ends on a finished job.
- NSF cheques
- A cheque returned to a supplier is read as a sign the margin is already thin.
- Payments to other lenders
- Equipment payments and advances already running reduce what a new lender can offer.
$0 upfront · 7% only if funded
An intermediary, not a lender.
The lender sets the final amount and its cost in its written offer.
Choose my amount