Should I get a line of credit or a term loan?

Match the instrument to the need. A recurring, self-liquidating gap — materials, subs, mobilization — belongs on a revolving line. A permanent capability purchase such as equipment or a facility belongs on term debt. Using term debt for a working capital cycle means paying for years on a need that lasted a quarter.

Do I pay interest when I am not drawn?

No. Interest accrues only on the outstanding balance. Some facilities carry a small unused-line or annual fee, which we disclose in the term sheet before you sign anything.

Can I get a line before I win the job?

That is the ideal sequence. Underwriting a line while your financials are calm and no deadline is pressing produces a better outcome than applying the week after an award, when you have no leverage and no time.

Will this interfere with my bonding capacity?

It can if the surety is not consulted, since sureties typically claim a position on contract receivables. We coordinate with your surety during structuring. Handled in the right order, a line usually supports bonding capacity because it strengthens your working capital position.

Revolving capacity for trades

Line of Credit for Contractors

A contractor's cash need is not a single event — it is a repeating cycle that resets with every job. Term debt is the wrong instrument for that shape: you borrow once and amortize for years against a need that appeared and disappeared in ninety days. A revolving line matches the shape of the business, and the discipline of paying it back down between draws is what keeps the facility available for the next award.

Quick answer

Business line of credit for general and specialty contractors. Draw for materials and subs, repay on the draw, and bid bigger jobs. $100K to $10M.

Get a structure for this situation

Two quick steps. An advisor responds within 24-48 hours.

You are probably here because

You need materials money at the start of a job and repay it when the draw funds

You are declining bids because you cannot carry two large jobs simultaneously

Your existing bank line was sized three years ago and the business has outgrown it

You want capacity in place before you need it, rather than applying under pressure

How we structure it

Line size$100K – $10M

InterestCharged only on the drawn balance

RevolvingDraw, repay, redraw without reapplying

Time to close1 – 3 weeks

What we need to give you an answer

Have these together and you will know where you stand in 24-48 hours instead of three weeks.

Work-in-progress schedule and AR aging with job-level detail

Two years of business tax returns and interim financials for lines above roughly $1M

Contract mix and average job size, which drive how large a line actually needs to be

Existing bank and surety relationships, so the new facility does not collide with either

How it played out

Putting the line in place before the award, not after

An electrical contractor in North Carolina was bidding a $4.2M institutional project requiring roughly $700,000 of materials in the first sixty days. Rather than wait for the award to apply, they closed a $1.5M revolving line while the bid was still out. They won, drew $680,000 for gear and switchboard, repaid it from the first two pay applications, and the line went back to zero balance and stayed available for the next bid.