Industry Qualification
Commercial Construction Companies fall under an eligible industry classification (Commercial and Institutional Building Construction, Industrial Building Construction). Commercial builders bill on pay applications and wait on owners and lenders, and the review is designed around how those draws reach the account.
✓ Checking what a commercial construction company qualifies for does not affect your credit score.
General contractors and commercial builders submit monthly pay applications against a schedule of values, receive progress draws from owners or construction lenders, and typically see 5–10% retainage held until closeout.
Funding is usually needed to mobilize a new project, carry subcontractor and material payments between draws, add equipment, or bridge a delayed draw on a job that is otherwise on schedule.
Draws arrive in large, uneven deposits, so averaging about 10% of monthly revenue in the account shows the company can float subs and materials. ADB explained →
Builders with three-plus years of completed projects are strongest, and younger firms with steady pay apps are funded regularly. Time tiers →
Sub payments released before an owner's draw clears are the usual cause of negative days — fewer than 3 a month keeps the file in range. Exact limits →
A position taken to mobilize a previous job is reviewed with the file, and balances of $100K or less can be bought out. Refinance options →
Pay applications are typically submitted monthly and paid 30 to 60 days later, after architect and lender review; retainage can stay unpaid for months until punch list and closeout. Weather, inspections and change orders can push draws back.
Subcontractors, materials, equipment rentals, insurance and bonding costs are paid as the work progresses, which means the company carries the job between draws.
Here is how a commercial builder's file is measured. Tier 1 is the lower-cost program; a builder that misses one line is not out, because tier 2 was designed for that case.
Built for younger construction firms, owners with lower scores, and builders already carrying a position from an earlier job.
On tier 2, construction carries its own bar: $500,000+ in monthly revenue, 5 years in business, 10+ monthly deposits and a commercial business location. (Trucking is the only other industry with special tier 2 rules.)
Construction is one of the most misunderstood categories. Eligibility depends on what kind of construction you do, and the product depends on how the job pays.
In the industry list on file, commercial and institutional building contractors, roofing and specialty trades are eligible. New single-family and multifamily home construction and residential remodelers are restricted. If your business does both, the statements and contracts need to show the commercial work clearly.
Commercial jobs often pay in draws, with 5% to 10% retainage held until completion. That means deposits arrive in large, irregular amounts and part of every contract is paid months later. Underwriters read six months of statements to average this out; a schedule of contracts in progress, with amounts billed, paid and retained, helps.
Illustrative only. A commercial drywall contractor has a $240,000 contract billed monthly with 10% retainage. Materials for the next phase cost $38,000, due before the next draw arrives in 30 days. A $40,000 line of credit draw costs a $996 fee and is repaid from the draw; an advance of the same size would keep collecting after the draw lands.
For machines with a vendor quote, an equipment loan is usually cheaper. See equipment financing for a worked $60,000 example.
Deposits, permits and early materials before the first draw.
Paying trade partners on time while owner payments process.
Lifts, loaders and trucks that cut rental costs.
Working capital that supports larger bonded bids.
Bridging closeout while retainage is held.
A commercial builder starting a medical-office buildout must pay framing and MEP subs for six weeks before the first lender draw.
Its statements show about $420,000 a month in deposits and an average daily balance near $44,000 — roughly 10% of monthly revenue, right around the 10% benchmark.
A request of $150,000 on a line of credit is about 36% of one month's deposits for this commercial construction company, which keeps the payment proportionate to what comes in.
Illustrative figures for a sample commercial construction company, not an offer; real amounts, terms and cost depend on the full file.
Pull recent operating-account statements; progress draws, deposits and retainage releases show the company's real volume.
Draw timing, years building and open positions shape the decision, with the owner's credit as one input.
Before you sign, the amount, term and total cost are in writing, so payments can be lined up with the draw schedule.
Once signed, money normally hits the account the next business day, ahead of the next sub payment run.
Yes. Draw delays are normal in commercial work; the review looks at how the account holds up between payments.
Pay-application deposits set the size, inside a $10,000–$350,000 line of credit or a $10,000–$250,000 term loan.
No. Retainage is standard; only money that actually reaches the account is reviewed.
Yes. Construction files on that tier need $500,000+ in monthly revenue, 5 years in business, 10+ monthly deposits and a commercial business location.
No. The check leaves the score untouched, and construction companies get a same-day decision.
Mobilizing a job or carrying subs between draws — commercial builders get a same-day decision, without any credit impact.
