Industry

Construction funding in Canada: what funders actually read.

The deposit patterns, seasonality and timing that decide how a Canadian construction file is read.

✓ Checking what you qualify for does not affect your credit score.

How funders read construction files

Progress billing, mobilization costs and 30 to 90-day receivables make construction cash flow lumpy, and funding is often about bridging the gap.

Deposit patterns across progress-billing cycles
Receivable timing from general contractors and owners
Seasonal winter slowdowns
Remittance obligations such as payroll deductions and sales tax

Common reasons to fund

Material and mobilization costs before the first draw
Equipment purchases and repairs
Payroll during a slow-pay project
Bonding and insurance premiums

A worked example

Illustrative arithmetic

A Winnipeg contractor with $90,000 a month in deposits takes $45,000 at 1.24 to mobilize a project, repaying $55,800 over about 24 weeks. In construction, "holdback" can also mean statutory lien holdback on a contract, which is a different thing from a merchant cash advance holdback.

Every figure on this page is illustrative arithmetic in Canadian dollars. It is not an offer, a quote or a promise of approval.

Typical starting points

Monthly revenueTypically from around $20,000 a month in deposits for Canadian files. The exact line varies by funder and by file.

Time in businessTypically about 12 months. Newer businesses can be reviewed, but the options narrow.

Account healthLimited low-balance or negative days. Funders read the last few months of bank statements for this.

CreditScores from 500 are considered. A score of 600 or higher opens more options and better offers.

DocumentsA signed application and recent business bank statements, typically the last four months.

Existing advancesFiles with an existing advance can be reviewed, including second position.

Common questions

What do funders read first in construction files?

Deposit patterns across progress-billing cycles, then receivable timing from general contractors and owners.

What is the money usually used for?

Most often: material and mobilization costs before the first draw; equipment purchases and repairs; payroll during a slow-pay project; bonding and insurance premiums.

Is construction funding the same as for other trades?

The review reads the same things in every trade. What changes is the rhythm: progress billing, mobilization costs and 30 to 90-day receivables make construction cash flow lumpy, and funding is often about bridging the gap.

See what you qualify for

Same-day decision. Applying takes a few minutes and will not affect your credit score.

Apply Now →