Construction Business Funding: Bridge the Gap Between Draws

You've got a signed contract, a mobilized crew, and a materials order that can't wait. Your next draw disbursement is 45 days out. That gap — real money owed, real expenses due now — is the defining cash-flow problem in construction, and it's why traditional lending timelines don't work for this industry.

Byzfunder is a direct small-business funder. We review construction files, fund from our own balance sheet, and move fast. If your business has revenue and consistent deposits, we can have capital to you in as little as 24 hours.

::takeaways::

• Construction's cash-flow gap is structural — you work in advance and collect in arrears on 30–90 day draws — not a sign of a failing business.
• Byzfunder is a DIRECT funder (no broker, no marketplace re-shopping your file), and MCA/ByzFlex are unsecured — no hard-asset collateral or property pledge required to qualify.
• Funding in as little as 24 hours for qualifying files: MCA $5K–$500K (FICO floor 525); ByzFlex revenue-based revolving capital (FICO 550, $250K+/yr).
• Underwriting reads your bank deposits and project rhythm, not just your FICO — lumpy construction revenue is a known pattern, not a red flag.

::/takeaways::

The Construction Cash-Flow Problem Is Structural, Not a Sign of Failure

Construction is unique: you perform work in advance and collect in arrears. Draw schedules are set by contract, not by your payroll run. A general contractor on a $600,000 commercial remodel might submit a draw request, wait for the owner's architect to certify it, then wait for the lender disbursement — a 30-to-60-day cycle on a good project.

Meanwhile:

• Subcontractor invoices hit every two weeks.
• Lumber, concrete, and roofing materials suppliers expect 15-to-30-day terms at best.
• Workers' compensation and general liability premiums are due quarterly regardless of draw timing.
• Equipment rental invoices don't pause for slow inspectors.

The business isn't failing. The payment cycle is just misaligned with the expense cycle. That misalignment is the cash-flow trigger that drives construction companies to need working capital.

How MCA and ByzFlex Work for Construction

Byzfunder offers two products. Construction businesses typically qualify for one based on their revenue profile and how they plan to use capital.

Merchant Cash Advance (MCA) / Term Loan

An MCA is an advance against your future revenue. Byzfunder purchases a portion of your future receivables at a fixed factor rate and collects via a small daily or weekly percentage of deposits. Because repayment is tied to your revenue activity, slower periods naturally produce smaller repayment amounts.

Best fit for construction when:

• You need a lump sum to pre-purchase materials for a specific job at a bulk discount.
• You need to cover a specific payroll run before the draw arrives.
• Your revenue comes in large, irregular chunks — a pattern our underwriting knows how to read.

Advance amounts: $5,000–$500,000. Terms: 3–15 months. FICO floor: 525.

ByzFlex — Revenue-Based Revolving Capital

ByzFlex acts like a business line of credit but is structured as revenue-based financing. You draw what you need, repay weekly, and draw again (every 14 days once a draw cycle is active) up to your approved limit. It is not a conventional line of credit — it is revolving capital tied to your revenue performance.

Best fit for construction when:

• You have recurring jobs and need to access capital across multiple draw cycles.
• You want flexibility to pull $15,000 for materials on one job and $40,000 for a payroll crunch two weeks later, without reapplying.
• Your annual revenue is $250,000 or more and you can sustain weekly repayment.

Available amounts: $7,500–$150,000. Repayment: weekly. FICO floor: 550. Revenue requirement: $250,000+/year.

A single business is offered MCA or ByzFlex — never both simultaneously.

What Byzfunder Looks at for Construction Files

Our underwriting reads bank statements, not just credit scores. For construction businesses specifically, we focus on:

Deposit consistency relative to project cycles. Construction deposits are lumpy — that's expected. We look at the trailing 3–6 months to understand your revenue rhythm, not just your average.

Payroll and materials outflows. A construction company that's making its payroll and paying suppliers on time is a functioning operation. The presence of these routine large outflows is a signal of an active business, not a red flag.

Average monthly revenue. Our MCA minimum is $20,000/month in deposits. Most active general contractors and specialty subcontractors clear that threshold easily.

FICO floor. 525 for MCA/Term Loan. 550 for ByzFlex. Score above the floor means your file goes to full underwriting — credit is one input, not the deciding factor.

What You'll Need to Apply

• 3 months of business bank statements
• Basic business information (entity, TIN, time in business)
• Most recent tax return (some files may require this)

Time in business: 1 year minimum. Average monthly deposits: $20,000+.

The application takes minutes. If you have your bank statements ready, same-day review is realistic.

Frequently Asked Questions

My revenue is seasonal — we're busy April through October and slow November through March. Does that disqualify me?

Not automatically. Seasonal construction revenue is a known pattern our underwriting accounts for. We review your trailing 3–6 months and look at your full annual picture. A file with $40,000–$60,000/month in peak season and $10,000–$15,000 in off-season still tells a clear story of an active business.

We work on government contracts with 60-to-90-day payment terms. Can we qualify?

Government-contract construction businesses qualify using the same revenue-and-deposit framework. Long payment terms are exactly the scenario where short-term working capital helps. We look at actual deposits, not contract face value.

I'm a subcontractor, not a GC. Does that matter?

No. Subcontractors — electrical, plumbing, HVAC, framing, concrete — qualify on the same criteria as general contractors. Revenue and deposit consistency are what we underwrite, not where you sit in the contract hierarchy.

How fast can we get funded?

If your file is clean and your bank statements are current, same-day or next-business-day funding is realistic. The timeline depends on how quickly you submit documents and respond to any follow-up questions.

Will this affect my ability to bid on bonded jobs?

An MCA or revenue-based advance is not a bank loan and does not appear on commercial credit reports the same way a term loan would. That said, consult your bonding agent regarding any disclosure requirements in your bonding contract — we can't advise on bonding-specific legal obligations.

What if I've had a prior MCA with another funder and defaulted?

Prior MCA defaults are reviewed file-by-file. A prior default that was resolved, combined with improved current bank-statement health, is different from an open default. Full disclosure is required on your application; we do verify funding history.

Who lends to construction companies without demanding collateral?

Byzfunder does. An MCA is unsecured — it's a purchase of your future receivables priced with a factor rate, not a loan secured against your equipment or property. There's no hard-asset collateral requirement and no property pledge to qualify; we underwrite your revenue and deposit consistency. (A standard UCC filing may apply, as with most business funding — ask us how it works for your file.)

Is a construction advance actually worth the cost?

It depends on what the capital does. If a $40,000 advance lets you pre-buy materials at a bulk discount, cover a payroll run to keep a crew on a job, or take a second project you'd otherwise pass on, the return often outweighs the factor-rate cost. If you'd use it to plug a structural shortfall with no revenue-generating payoff, a short-term advance is an expensive way to do that. The honest test: does the capital create more value than it costs? We show you the total dollar cost upfront — a factor rate, not an APR — so you can run that math before you sign.

What do I need to fund my construction business this week, and how do I start?

Three months of business bank statements and basic business info (entity, TIN, time in business). The application takes minutes; if your statements are current, same-day review is realistic. Start at apply.byzfunder.com — you'll deal with Byzfunder directly, since we're the funder, not a broker routing your file.

::insight:: The single biggest driver of construction funding need isn't a downturn — it's a WIN. A bigger contract means bigger up-front payroll and materials outlays, weeks before the first draw certifies. The retainage held until project close-out (commonly 5–10%) sits on the far side of that gap. Short-term working capital exists to bridge exactly that timing, so a good project doesn't get starved by its own success. ::/insight::

::qualify:: See what your construction business qualifies for. If you've been operating 1+ year with $20,000+/month in deposits, you likely meet the baseline. Byzfunder is a direct funder — real offers, shown with the full cost upfront, not a marketplace of quotes. ::/qualify::

::cta:: Bridge the gap between draws. Apply in minutes and get a funding decision in as little as 24 hours — checking your options doesn't affect your credit score. ::/cta::

Ready to apply? Apply for an MCA or ByzFlex | MCA product details | ByzFlex revolving capital | Construction funding guide | MCA vs. line of credit

Byzfunder (ByzFunder NY LLC) funds small businesses directly. Advance amounts, factor rates, and repayment terms vary by applicant file and are not guaranteed. This is educational content, not an offer or commitment to fund. For California, term loans are arranged or made pursuant to the California Financing Law — License Number: 6031098.