Financing big commercial jobs – deposits, materials and retainage.

Commercial jobs often require you to front tens of thousands of dollars in equipment and labour before you see a dime. Contract CAPLines under the SBA 7(a) program finance the costs of one or more specific contracts, including overhead. These lines may be revolving or non-revolving and are designed to cover materials and labour until the owner pays retainage.

For projects with long payment cycles, consider combining a CAPLine with progress billing: invoice at milestones and require deposits to cover major equipment. Maintain a separate job-costing account so you don’t commingle project funds with operating cash.

Finally, read your contract carefully—some owners pay retainage only after final acceptance, which can be months after you finish. Don’t bankroll someone else’s job without charging for the privilege.