CONSTRUCTION LINE OF CREDIT.
A working capital line is one of the most useful financial tools a commercial subcontractor has, and one of the most misused. Used correctly it bridges specific identified cash shortfalls. Used incorrectly it becomes permanent debt that keeps a structural cash flow problem out of sight and drains profit through interest without anybody noticing it happen.
The test is whether you can point at the repayment event. Every draw should have one: the pay app collection that triggered the draw, the retainage release that came late, or the mobilization that front-loaded a new job. If you can't say which specific collection repays the draw and in which week, you aren't bridging anything. You're funding operations with debt and calling it a bridge, and the interest comes out of net profit every month it stays there.
WHAT IT MEANS.
A working capital line of credit is a revolving bank facility a subcontractor draws on to bridge a specific identified cash shortfall and repays when the matching collection comes in.
Line size is its own decision and both errors cost you. Too small and the line doesn't cover the shortfall it was borrowed for, so you end up stretching AP anyway. Too large and it becomes tempting to operate the business off it, which is how a bridge turns into operating capital nobody plans to repay. The 13 week forecast is what shows the peak shortfall the line has to cover.
WHEN THE BRIDGE BECOMES THE FOUNDATION.
Your line is always drawn down
A working capital line that never gets paid back to zero is a term loan you're treating as revolving debt. The line is covering a structural cash flow problem rather than bridging a timing shortfall, and those are two different problems with two different fixes. Paying interest on it forever is the price of never diagnosing which one you have.
You drew on the line without a specific payback plan
Every draw should have an identified payback event behind it: the pay app collection that triggered the draw, or the retainage release that was delayed. Drawing without knowing specifically when and how the repayment happens turns short-term bridge financing into open-ended debt. The plan is what makes it a bridge, and the paperwork at the bank only funds it.
You don't qualify for the line you need
Working capital lines for subcontractors are sized off financial ratios: working capital, current ratio, revenue, and AR aging. Most subcontractors don't think about qualifying until they urgently need the money, and by then the financial profile may not support the line size the business requires. The qualifying work has to happen in the quarters before you need it, which is the part nobody enjoys.
WHAT IT LOOKS LIKE IN DOLLARS.
That's a common benchmark for line size. A $5M contractor typically qualifies for and benefits from a $500K to $750K line. Where you are in that range depends on your project cycle, meaning how long it takes between when you spend and when you collect, and on the peak shortfall the 13 week forecast shows.
RESEARCH FROM OTHER SOURCES.
These figures come from another company's survey, not from SPM's clients. Each one cites the report and the page.
Billd's 2026 National Subcontractor Market Report found more than half of subcontractors said their bank line of credit covers less than 10 percent of their annual revenue.
Source: Billd, 2026 National Subcontractor Market Report, page 8 (survey of 623 respondents, published May 13, 2026).
Billd's 2026 National Subcontractor Market Report found 42 percent of subcontractors secured capital before they needed to use it.
Source: Billd, 2026 National Subcontractor Market Report, page 10 (survey of 623 respondents, published May 13, 2026).
ONE RULE BEFORE EVERY DRAW.
Draw when three things are true at the same time: the 13 week cash flow forecast shows a specific shortfall in a specific week, the shortfall comes from a known timing event such as a GC paying a particular pay app slowly or a mobilization front-loading a new job or a late retainage release, and you can point at the specific collection event that repays the draw. If you can't identify the repayment event, don't draw. That single rule stops most permanent balances before they start.
Banks look at working capital position, current ratio targeted above 1.5, debt service coverage ratio, AR aging including concentration risk with no single customer over 30 to 40 percent of AR, and the revenue trend. SPM maintains the financial profile that supports qualification year round, so when a line increase or a new facility is needed the financial package is already built rather than assembled in a panic. We also connect clients with vetted lending partners who understand construction working capital.
SPM builds line of credit payback into the 13 week cash flow forecast: the draw event, the draw amount, and the specific week the collection comes in to repay it. When that collection comes in, the line gets paid. Not mostly paid. Paid to zero if the collection supports it, and the forecast is what makes that discipline visible rather than a judgment call somebody makes on a Friday.
FLAT MONTHLY FEE. NO SURPRISES.
Three tiers, priced by your trailing twelve month revenue. Which one you're in depends on how much of the work you want off your desk. No hourly billing. No payroll. The one-time onboarding fee is right here in the table.
| Last 12 months revenue | Monthly fee | One-time onboarding |
|---|---|---|
| Under $1M | $1,900 to $3,300 | $1,000 |
| $1M to $3.5M | $2,600 to $5,300 | $1,500 |
| $3.5M to $6.5M | $3,800 to $8,300 | $3,000 |
| $6.5M to $9.5M | $5,100 to $11,800 | $4,500 |
| $9.5M to $12.5M | $6,100 to $14,900 | $6,000 |
| $12.5M to $15.5M | $7,400 to $17,650 | $7,500 |
| $15.5M to $18.5M | $9,400 to $22,400 | $9,000 |
| $18.5M+ | Quoted individually | Quoted individually |
The onboarding fee covers migrating your books back to the start of your last taxable year and getting you fully operational in 60 days. It's billed once, with your first invoice. It's the same for all three tiers. Your first month is prorated, and your monthly engagement starts on the first of the first full month.
Range reflects the three tiers below. Which one you're in depends on how much of the work you want off your desk. No payroll. No hidden line items. The onboarding fee is right here in the table.
You stop guessing.
You get the CFO work. Job costing built against the way you estimate, a 13 week cash forecast, monthly WIP, and a meeting every month that ends in decisions and never in a report.
Your bookkeeper still does the books.
Every job shows its margin while it is still open.
Everything in Core, plus the bookkeeping and bank reconciliations done for you, and the job costing and WIP software set up, loaded with your cost codes, and managed every month. Use your own online software, or move to ours and we cover it.
A bookkeeper we choose does the books and reconciliations. No payroll.
You approve, and the money side gets handled.
Everything in Strategic, plus a controller we choose who handles your bills and receivables for you the way an in-house controller would. They call vendors, pay the bills and keep the accounting current. We plan the cash flow first, and you approve every payment because it is your money.
A controller we choose does the payables and receivables. No payroll, no pay applications, no collections.
FREQUENTLY ASKED.
