Working capital for Florida construction companies
In construction you pay for labor and materials today and get paid weeks later. Progress payments, pay applications, retainage and change orders all stretch the gap between money out and money in. Working capital is short-term funding meant to bridge that gap so a good job does not stall.
Where the cash gap comes from
- Draw schedules and pay applications. You carry costs until the next payment is approved and released.
- Retainage. A portion of each payment is typically held back until the job is complete.
- Change orders. Extra work gets paid for after you have already spent the money.
- Slow-paying customers. Even a solid customer can pay late.
- Mobilization and materials. Starting a job takes cash before any revenue shows up.
- Seasonal and weather swings. Storms and slow stretches hit payroll even when work is lined up.
Common working capital options
Business line of credit
You draw what you need, repay, and draw again. It fits recurring gaps such as bulk material buys, payroll between draws, or bid deposits.
Short-term or term loan
You receive a lump sum and repay it on a fixed schedule. It works well when you know the exact amount you need.
Revenue-based financing or merchant cash advance
The provider advances money and takes repayment as a share of your receipts or as fixed daily or weekly withdrawals. Cost is usually shown as a factor rate instead of an APR, and it can be one of the more expensive options. It can be fast, but the frequent withdrawals can strain a contractor who gets paid in large, uneven chunks.
Invoice factoring
You sell approved invoices for cash now. See our guide to invoice factoring for contractors.
Match the repayment to how you get paid. If your income arrives in draws, a daily or weekly withdrawal schedule can pinch even when the job is profitable.
How to choose
- Add up the total payback and all fees, not just the amount you receive.
- Look at how often payments come out and whether that suits your draw schedule.
- Be careful about stacking a new advance on top of one you already carry. Layered payments can squeeze cash flow quickly.
- If a line of credit fits your job cycle better than a faster, more expensive advance, it is usually worth the extra step.
What funding partners typically look at
Most providers focus on your monthly deposits, how long you have been in business, your job volume, and your existing debt. Many want at least a year in business. Credit matters, but a lot of providers weigh cash flow more heavily for construction businesses.
Before you sign
- Get the total repayment amount, fees, payment frequency and prepayment terms in writing.
- Florida has a commercial financing disclosure law that requires certain providers to give written disclosures. Ask for them.
- Make sure you understand any personal guarantee or lien on business assets.
Common questions
Can working capital cover payroll and subcontractors?
Yes. Contractors commonly use working capital and lines of credit for crew payroll, subcontractor payments and material deposits while they wait on a draw.
Do I need good credit?
Credit matters, but many providers lean on monthly deposits, job volume and time in business for construction businesses. Requirements differ by provider.
How fast can I get funded?
Timing depends on the provider, the product, and how quickly you can supply documents such as bank statements. We cannot promise a specific timeline.
Can I get funding if I am newer?
Most providers want at least a year in business. If you are newer than that, we will tell you honestly rather than keep you in an application that will not clear underwriting.
See what options fit your business
Tell us about your business once. We will match you with funding partners that fit, and we will tell you plainly if it is not a fit yet. No cost to submit a request.
Request a match →King Tide Funding is a commercial financing referral service, not a lender. We do not make credit decisions, set rates or terms, or hold or move your funds. Independent funding providers make all approval, pricing and funding decisions, and funding is never guaranteed. This page is general information, not legal, tax or financial advice. Talk to your attorney or CPA about your situation.