Construction business funding that fits lumpy draws and retainage
Not a lender.
We work the file, not a single product.
Shopped for fit.
Sent only where it matches, and nowhere else.
You make the call.
Funders' terms in writing. Nothing moves until you choose.
- Cost to apply
- Nothing. Applying asks for no payment.
- Credit
- Ask how any credit review works before you sign.
- Speed
- We make no timing promise. Each funder sets its own review time.
- Offers
- Each one shows total payback and terms from the funder.
Who this page is for: general contractors, subcontractors and specialty trades, plus brokers with construction files.
How do funders average a contractor's deposits?
Funders average several months so that one large draw does not make the business look bigger than it is.
A contractor who deposited a large progress payment in March and little in April is judged on both. Some funders drop the single largest deposit when sizing an offer. Each uses its own method, so the same file can size differently at different funders.
Landscaping and HVAC and plumbing files share the same lumpy months, for different reasons.
Backlog in construction business funding, and how funders weigh it
Funders treat a signed backlog as context rather than revenue, since it has not reached the bank account.
A strong backlog can support a file whose recent statements show a lull between jobs.
Signed contracts versus open bids
Signed contracts with payment schedules carry weight; open bids carry little. Funders ask for the contract, not the bid list.
The quiet month between two big jobs
A contractor finishing one job and starting the next can show a quiet month. The next job's contract and draw schedule explain the lull.
Dates the progress payments are due
A draw schedule shows when progress payments are expected. Funders use it to judge whether the lull ends soon.
Payment section and first draw date
Attach the signed contract's payment section and the first draw date, along with the statements. A funder can then see deposits resuming.
Change orders that move a draw
A signed change order can move a draw date or amount. Send it with the contract so the funder reads the schedule as it now stands.
What is retainage and why does it matter?
Retainage is a portion of each progress payment that the project owner holds back until the job is complete. It is money the contractor has earned but cannot deposit yet.
Funders generally cannot count it as current revenue, though a schedule of retainage due soon can support a file.
Contractors carrying two or more pulls often end up weighing a consolidation against waiting for the next draw, and the holdback guide explains why a fixed debit fights progress billing.
Does a weekly debit suit a contractor better?
A weekly debit often fits a contractor better than a daily one, because deposits come in lumps. Five small debits a week against an account that gets paid twice a month creates more negative days. Where a funder offers weekly remittance, we show the owner both schedules against their actual deposit dates.
What contractors ask us
Can a subcontractor waiting on a GC payment get a merchant cash advance?
A subcontractor waiting on a general contractor's payment can apply, and the unpaid invoice helps explain the gap. The funder still reads the account history. Send the invoice and the expected payment date.
Are progress payments counted as revenue on a contractor file?
Yes, progress payments deposited into the business account are counted as revenue. Funders average them over several months. Large one-time deposits may be discounted when sizing an offer.
Does bonding or a lien waiver affect an advance?
An advance does not change the contractor's bonding, but some surety agreements restrict additional financing. Check the indemnity agreement with your surety. Tell the funder if a bond program is in place.
Sources
- The Bureau of Labor Statistics construction sector profile, NAICS 23 describes firms that work at multiple project sites under prime contracts or subcontracts (read 2026-09-24), the setting behind most construction business funding files.
Reviewed by the Afterfirst Editorial Team. Last reviewed .
Afterfirst is not a lender; all offers are subject to funder underwriting.
Cost, credit, speed and stacking
- Cost
- A contractor should weigh the payback against the draw it bridges. Retainage held back can make the total feel larger than it is.
- Credit
- Draw schedules and credit steps are separate topics. Get each funder to describe its credit steps before you sign.
- Speed
- We cannot promise a date on a construction file. A draw schedule and open contracts save a round of questions.
- Stacking
- Lumpy draws tempt a second advance between jobs. List every open one so only funders that accept the stack see the file.
Send one file.
See what fits.
Next step: Include your current job list and expected draws when you Call 877-FUND-654Email info@afterfirstmca.com for construction business funding, so the lumpy months are read in context.A person replies within one business day.
Or write to the desk at info@afterfirstmca.com
A person replies within one business day.