Working Capital Loans for Construction Companies in Florida
Florida's construction market is large and busy, from residential subdivisions around Orlando, Tampa and Jacksonville to condo, infrastructure and commercial projects across South Florida. But even busy contractors run short on cash. Payroll is weekly, suppliers want payment in 30 days, and general contractors and owners often pay on monthly draws with retainage held back until the end. Working capital financing helps close that gap so you can keep crews working and bid on the next job.
- One short form — about 2 minutes
- No fee to request options
- Reviewed by our funding partner's team (50+ lender programs)
Approval and terms are not guaranteed and depend on your business's qualifications.
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How construction companies in Florida use working capital loans
- Covering weekly payroll while waiting on monthly draws
- Buying materials for a new project before the first draw
- Bridging retainage held until project closeout
- Mobilizing for a larger job than you have handled before
- Covering bonding collateral or deposits
Why construction cash flow is tight even when business is good
A subcontractor might start work in March, bill at the end of the month, get paid in late April, and see the retainage on that work only when the whole project is finished months later. In the meantime, payroll, fuel, equipment and materials have all been paid. Growth makes this worse: each new job adds costs before it adds revenue.
This is why profitable contractors often need working capital. The issue is timing, not profit, and the right financing should match the timing problem.
Working capital options for contractors
A term working capital loan provides a lump sum repaid over a fixed period. It works for a defined need such as mobilizing for a large project.
A business line of credit lets you draw as needed and repay as draws come in, which suits recurring gaps.
Invoice or receivables financing advances money against your approved pay applications or invoices. Some providers specialize in construction receivables and understand retainage and lien waivers.
Revenue-based financing or merchant cash advances are repaid from future deposits. They can be fast but are often costly, and the frequent payments can strain contractors with lumpy revenue. Compare them carefully with other options.
What lenders look for
Lenders want to see that your business has steady work and pays its bills. Bank statements are the starting point, and many programs look for at least six months in business, with more choices after a year or two.
- Business bank statements, typically the last three to six months
- A list of current contracts, backlog and expected draws
- Accounts receivable aging, including retainage
- Florida contractor license and insurance
- Existing loans, equipment notes and any advances
- For larger amounts, tax returns and financial statements
Florida-specific points: liens, retainage and payment rules
Florida's Construction Lien Law gives contractors, subs and suppliers lien rights if they follow the notice and timing rules, which protects your right to get paid. Lenders that finance construction receivables may ask how you handle notices to owner and lien waivers. Florida also has prompt payment rules for public projects and limits on retainage for many public contracts. Know the terms in your own contracts, because they decide when cash actually arrives.
These rules are complex and change over time. A construction attorney or your accountant can tell you how they apply to your projects.
How much to borrow and how to repay it
Size the financing to the gap, not to the maximum a lender offers. Map out the next three months: expected draws and their dates on one side, payroll, materials and fixed costs on the other. The largest negative balance in that schedule is roughly what you need, plus a cushion. Then confirm that the repayment schedule matches when your draws actually arrive.
Be cautious about daily or weekly payments if your revenue comes in once a month. A mismatch between how you get paid and how you repay is one of the most common reasons contractors get into trouble with short-term financing.
Comparing offers under Florida law
Florida's commercial financing disclosure law requires many non-bank providers to disclose the total cost, payment amounts and prepayment terms for many commercial financing transactions of $500,000 or less, and Florida bars commercial loan brokers from charging advance fees. Ask every provider for the total repayment amount, payment frequency, all fees and the cost or savings of paying early, and compare them side by side.
Documents to have ready
Contractors who have their paperwork organized usually get faster answers and better choices. Before you apply, gather your last six months of business bank statements, an accounts receivable aging report that shows retainage separately, a backlog list with contract values and expected completion dates, your Florida license number, certificates of insurance, and a list of any existing loans, equipment notes or advances with their payments. For larger requests, have the last two years of business tax returns and a current profit and loss statement.
What lenders typically look at
| Time in business | Often 6+ months; more options at 1+ year |
|---|---|
| Monthly revenue | Commonly $10k+/month in deposits |
| Credit | Some programs work with fair credit; stronger credit widens options |
| Typical documents | Recent business bank statements, ID, short application |
| Typical speed | Some products can fund in days once documents are complete |
These are general industry ranges, not offers or guarantees. Actual requirements vary by lender and product.
Working Capital Loans in Florida: things to know
Florida is one of the states with a commercial financing disclosure law, so for many offers the provider must give you a standardized disclosure of the total cost, payment terms and (for some products) an estimated APR before you sign. Read it and compare offers side by side. Working Capital Loans terms, eligibility and availability vary by lender.
Frequently asked questions
Can I get working capital based on my backlog?
Some lenders consider signed contracts and backlog, especially when combined with bank statements and receivables. Backlog alone rarely qualifies you, but it can strengthen an application.
Can a subcontractor qualify, or only general contractors?
Both can. Subcontractors are often good candidates for invoice or receivables financing because their pay applications are approved by a GC with its own credit.
How fast can a contractor get working capital?
Some products fund within days once documents are complete; bank lines and SBA loans take longer. Timing is set by the provider and is never guaranteed.
Will retainage count toward my receivables?
It depends on the lender. Some will advance against retainage, but usually at a lower percentage because it is paid later and depends on project completion.
Does Chief of Money lend money?
No. We are a free referral site. Our funding partner reviews your request and may present options from its lender network.