Subcontractor Loans

Specialty contractors or subcontractors specialize in a construction trade and are responsible for completing a specific portion of a construction job. Subtractors are usually hired by a general contractor that has a contract to build and manage a construction project. With this being the case, subcontractors are usually the last contractors to get paid on a construction job. Specialty contractors that have the cash reserves to support a job without a subcontractor loan do, while others utilize subcontractor loan programs to finance new jobs.

Subcontractors typically bill in arrears for time and materials and are paid when paid. Paid when paid contracts mean that a subcontractor is not paid until the general contractor is paid by their client. This puts subcontractors at the bottom of the payment waterfall, making late payments a common occurrence. Loans for contractors programs are a common way to help support the upfront and ongoing expenses.

Subcontractor loans are a great way to make sure that operating cash flow is strong for day-to-day expenses. Whether you are looking to purchase equipment or buy materials, there are subcontractor loan programs available. Below are some of the ways you can use a specialty contractor loan program.

• Purchasing new equipment
• General working capital
• Purchasing new tools
• New project bids
• Mobilization funding
• Material expenses
• Refinancing debt
• Payroll
• New project bids
• Hiring new employees
• Advertising and marketing
• Purchasing new equipment