# Construction Business Loans

> Construction companies front the cost of labor, materials, and equipment long before a progress draw or final payment clears. Hoss Capital matches general contractors, subs, and specialty trades with funding partners who understand retainage, draw schedules, and the lumpy cash flow of project-based work.

## Key takeaways
- Contractors front labor, materials, and equipment up front while payment comes back in draws — and retainage (often 5–10%) can sit unpaid until well after the job ends.
- Equipment financing uses machinery and vehicles as collateral, a line of credit covers materials and mobilization between draws, and working capital advances bridge slow-paying progress billings.
- Construction lenders expect seasonal, project-based revenue and look at backlog, contracts, and deposits rather than steady monthly income.
- Signed contracts and a healthy pipeline are the real asset, signaling to a lender that work is coming even when this month's deposits look thin.

## Funding built for how construction actually works

Construction runs on a stubborn timing problem: you mobilize crews, buy
materials, and rent or run equipment at the start of a job, but the money comes
back in draws — and the last slice (retainage) can sit unpaid until well after
the punch list is done. Profitable contractors still run short on cash because
the outflows are immediate and the inflows are milestone-based.

### The options that fit contractors best

- **Equipment financing** — for excavators, loaders, lifts, trucks, and shop
  tools, with the equipment as collateral so approvals move faster and your
  cash stays free for bids and payroll.
- **Business line of credit** — draw what you need to cover materials,
  mobilization, and labor between progress payments, then repay as draws clear.
- **Working capital advances** — lump-sum funding to bridge retainage, take on
  a larger project, or cover a gap when a draw slips.

### Cash-flow and seasonal dynamics

Many trades are weather- and season-sensitive — exterior, paving, and earthwork
crews ramp in warm months and slow in winter, while the bidding pipeline and
material deposits often peak before revenue arrives. Backlog is your real
asset: signed contracts and a healthy pipeline tell a lender the work is coming
even when this month's deposits look thin.

### Sub-segments we fund

General contractors, electrical, plumbing, HVAC, concrete and masonry,
framing, roofing, excavation and site work, landscaping, and specialty
subcontractors all carry different risk profiles and billing rhythms. A
subcontractor waiting on a GC has different needs than a GC managing several
owners and draw schedules at once.

### Why match through Hoss Capital

Generalist lenders often misread retainage, progress billing, and seasonal
gaps as instability. We route your profile to partners that actively fund
construction — so you spend time with lenders who understand backlog, draws,
and equipment-heavy balance sheets.

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Canonical: https://hoss-capital.pages.dev/industries/construction/