Construction working capital and cash flow financing for contractors.

Payroll is due Friday. The pay app isn't clearing until next month. Retainage is locked up in three completed projects. The cash flow math in construction is brutal — we structure financing that fixes it.

Apply to Caliber Intake takes under 5 minutes — no pitch deck required

Iraq War Veteran Wall Street Trader Columbia MBA Former Construction Owner Jason Leisey — Sovyrn Advisory

The construction cash flow problem

Money goes out before money comes in. Every time.

Construction is structurally cash flow negative in the short term. You pay your crew weekly. You pay your suppliers on delivery or net-30. You pay your subcontractors when the work is done. And the GC pays you net-60, net-90, or whenever they get around to processing your pay application — minus 5-10% retainage that they hold until final completion and acceptance.

This isn't a management problem. It's a structural problem built into how the industry operates. Even profitable contractors with full order books and excellent client relationships face persistent cash flow gaps because the payment timing doesn't match the cost timing. The better your business does — the more contracts you win, the faster you grow — the worse the cash flow pressure gets.

Working capital financing is what bridges that gap. Not because your business is struggling, but because construction's payment structure creates gaps that even well-run businesses need to finance. The contractors who understand this and structure their capital accordingly are the ones who can take on larger projects, bid more aggressively, and grow without hitting the wall every time a big pay app is delayed.

Where the gaps actually happen

Day 1

Project kicks off — costs start immediately

Labor, materials, equipment, bond premiums, insurance. Money goes out from day one before a single dollar of revenue is recognized.

Day 30–45

First pay application submitted

You submit your first progress billing to the GC. Now you wait for review, approval, and processing — typically another 30 days.

Day 60–90

First payment arrives — minus retainage

The GC pays 90-95% of the approved amount. The remaining 5-10% is held as retainage until project completion — which could be months away.

Project end

Retainage released — eventually

Final retainage is released after punch list completion, lien waivers, and GC sign-off. On a large project, this can be 90-180 days after your last day of work.

Working capital solutions

Four tools. Different gaps. We match the right one to your situation.

Most lenders offer one product and try to fit every problem into it. We work with multiple lenders across multiple products and recommend what actually fits.

Business line of credit

A revolving credit facility you draw on as costs arise and repay as payments come in. The most flexible working capital tool for contractors — you pay interest only on what you use, and the line resets as you repay. Ideal for managing ongoing cash flow gaps across multiple active projects.

Best for: Contractors with consistent revenue running multiple projects simultaneously.

Invoice financing

Convert submitted but unpaid progress billings into immediate cash. A lender advances 70-85% of your outstanding invoice value within 24-48 hours. When the GC pays, the lender collects and remits the balance minus their fee. Unlike factoring, you retain the client relationship and collection responsibility.

Best for: Contractors with large outstanding pay applications waiting on slow-paying GCs.

Retainage financing

Unlock the 5-10% held back on completed work before the GC releases it. Retainage can represent hundreds of thousands of dollars sitting idle on closed projects. Retainage financing converts that illiquid asset into immediate working capital — often at better rates than general working capital loans because the asset is already earned.

Best for: Contractors with significant retainage outstanding on completed or substantially complete projects.

Short-term working capital loan

A lump sum loan for a specific, defined cash need — covering payroll during a payment delay, funding a material purchase to hold pricing, or bridging a gap between projects. Faster to obtain than a line of credit with less documentation required. Repaid in fixed installments over 3-18 months.

Best for: Contractors with a specific, near-term cash need who don't want a revolving facility.

The process

How we structure construction working capital.

The right working capital structure depends on your specific gap — we identify it before recommending anything.

Apply through Caliber

Five minutes covering your cash flow situation, what you need the capital for, and your business profile. Be specific — "payroll gap on a delayed pay app" and "retainage outstanding on three completed projects" lead to completely different solutions.

We diagnose the actual gap

We review your situation and identify which working capital tool actually fits. A line of credit, invoice financing, retainage financing, and a working capital loan are four different products with different costs, speeds, and structures. We match the tool to the problem — not the other way around.

We match you to the right lender

Working capital lenders vary enormously in how they underwrite construction businesses. Some focus on credit score. Others focus on revenue and bank activity. Some understand construction payment cycles; others don't and will penalize you for patterns that are completely normal in this industry. We know the difference.

Fast funding — often 24-72 hours

Working capital products move faster than equipment loans or SBA financing. Many working capital loans and invoice financing arrangements fund in 24-72 hours once documentation is complete. Lines of credit typically take 5-10 business days to establish but fund immediately once set up.

Cash flow gap slowing you down? Let's fix it.

Apply through Caliber and we'll identify the right solution within 24 hours.

Apply to Caliber

Why Sovyrn

I've managed construction cash flow with my own money.

When I ran a construction company, cash flow wasn't theoretical. I knew to the day when payroll was due and to the week when I expected the GC to clear my pay app. I tracked retainage balances across every active and completed project. I made decisions about which invoices to pay early and which suppliers would give us terms — because that float was sometimes the difference between making payroll and not.

Most working capital advisors have never been in that position. They sell products. I've managed construction cash flow, which means I understand why the right structure matters as much as the rate. A merchant cash advance with daily debits might solve a short-term cash need while creating a worse cash flow problem than the one it solved. A line of credit that's structured correctly can become a permanent operating tool that smooths your cash flow across every project cycle.

At Sovyrn, I match you with lenders who understand construction's payment cycles — who don't penalize you for revenue patterns that spike and trough with project starts and completions, who understand that retainage on your balance sheet is a real asset even though it's illiquid, and who structure repayment around how money actually flows through a construction business rather than arbitrary fixed schedules.

The goal isn't to get you funded. It's to get you funded in a way that actually helps.

FAQ

Common questions about construction working capital.

What is construction working capital financing? +

Construction working capital financing covers the gap between when you spend money on a project — labor, materials, subcontractors — and when you receive payment from the GC or project owner. It includes lines of credit, short-term working capital loans, invoice financing, and retainage financing. The right product depends on the specific cash flow gap you're trying to close.

What is retainage financing and how does it work? +

Retainage financing converts the 5-10% holdback on your completed work into immediate cash before the GC releases it. When you finish a project, retainage can sit for 90-180 days waiting on punch lists, lien waivers, and GC sign-off. Retainage financing advances against that earned but unpaid amount — typically 70-85% of the outstanding retainage — so you can redeploy that capital into new work rather than waiting months for it to arrive.

What is the difference between invoice financing and invoice factoring? +

Both convert outstanding invoices to immediate cash, but they work differently. With invoice financing, you retain ownership of the invoice and responsibility for collection — the lender advances cash against it and you repay when the GC pays you. With invoice factoring, you sell the invoice outright to the factor, who then collects directly from your GC. Factoring means the factor contacts your GC, which some contractors prefer to avoid. We'll discuss which structure fits your client relationships before recommending one.

How quickly can I get working capital financing? +

It depends on the product. Short-term working capital loans can fund in 24-72 hours for qualified applicants with complete documentation. Invoice financing against a specific outstanding pay app can also fund in 24-48 hours. Business lines of credit take longer to establish — typically 5-10 business days — but once set up, you can draw funds immediately. We'll tell you exactly what speed to expect for your specific situation before you start the process.

Do I need perfect credit to qualify for construction working capital? +

No. Many working capital lenders focus primarily on your business revenue, bank activity, and time in business rather than personal credit score alone. Some invoice financing and retainage financing products focus more on the creditworthiness of your GC or project owner than on your own credit profile — because they're essentially lending against the GC's obligation to pay you, not against your business assets. We work with lenders across the credit spectrum and will be direct with you about what you qualify for.

Should I use a working capital loan or a line of credit? +

A working capital loan is a lump sum with fixed repayments — best for a specific, one-time cash need where you know the amount and timing. A line of credit is revolving — you draw what you need, repay when payments arrive, and the capacity resets. A line of credit is better for ongoing cash flow management across multiple projects. The tradeoff is that lines of credit take longer to establish. If you have an immediate cash need, a working capital loan may fund faster. If you want a permanent cash flow tool, a line of credit is worth the setup time.

Cash flow gap. Payroll pressure. Retainage tied up. Let's fix it.

Apply through Caliber and we'll identify the right working capital structure within 24 hours.

Apply to Caliber Intake takes under 5 minutes — no pitch deck required