The financing challenge
Construction businesses may need equipment finance for durable assets, a working-capital facility for operations, or transaction-specific funding. The right structure depends on contract terms, billing milestones, retainage or holdbacks, subcontractor payments, and the reliability of the collection cycle. A signed contract is not the same as cash received.
Build the funding case
Build a job-by-job cash view alongside the company forecast. Track costs to complete, approved change orders, progress claims, expected collection dates, and the equipment needed across projects. Explain how the requested financing supports profitable work and how debt payments fit both active construction and slower periods.
Pressure-test the plan
Unapproved extras, disputes, weather delays, and cost overruns can weaken the repayment plan. Receivables may be ineligible for financing when they are conditional or subject to unresolved claims. Lien, bonding, and holdback requirements depend on location and contract. Seek project-specific advice and avoid using a short facility to hide persistent losses on underpriced jobs.
Your next-step checklist
- Contract backlog and job-level margins
- Progress billing and collection schedule
- Costs to complete and contingencies
- Equipment, bonding, and existing security obligations
Crack this combination.
Why is contract value different from immediately available cash?
Keys track learning on this device and, when signed in, in your Saved files library. Every dossier stays open.
Sources & further reading
This file draws on the following references. Product availability and requirements must be confirmed with the provider.
Levr: cash flow projectionsLevr: accounts receivable reportsLevr: reviewing a debt term sheet