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Industry Qualification

Commercial Construction Companies: yes, this industry is eligible.

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.

EligibleIndustry status
Same dayDecision
$10K–$350KAvailable
NoCredit impact

Why commercial construction companies qualify

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.

Average daily balance

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 →

Time in business

Builders with three-plus years of completed projects are strongest, and younger firms with steady pay apps are funded regularly. Time tiers →

Negative days/NSFs

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 →

Existing positions

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 →

How money moves through a commercial construction company

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.

The exact requirements

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.

Tier 1 — line of credit and term loan

Time in business3+ years of operating history for the building company
Personal FICO650 or above for the owner signing the tier 1 file
Revenue$300,000 a year, or $25,000 a month on average, counted from draws that actually clear
Deposits8 or more a month, which can include draws, deposits and retainage releases
Average bank balance$5,000, or 10% of monthly revenue, measured across draw and non-draw weeks
Negative daysNo more than 3 in any month and 9 across six months, even while subs are being paid
NSFsUp to 6 in a month and 24 over six months on the builder's operating account
OwnershipThe signer owns at least 50% of the construction company; sole proprietors qualify, non-profits do not
Bankruptcy / foreclosureNothing within three years of the disposition date on the owner or company
Existing positionsA builder can carry up to 2; the term loan only funds in first position, while a line can sit behind one advance
States fundedProjects headquartered in any of the 50 states

Tier 2 — revenue-based funding

Built for younger construction firms, owners with lower scores, and builders already carrying a position from an earlier job.

Time in businessAt least 6 months generally, though construction has its own higher bar noted below
Personal FICO600 or above for the owner on a tier 2 construction file
Revenue$60,000 in verifiable revenue as the general floor; construction files need far more, as noted below
Minimum daily balance$800 held on the builder's account through the statement period
Negative days / NSFsA ceiling of 5 on the tier 2 construction review
Existing positionsA tier 2 builder may already carry up to 2 current advances
OtherNo open bankruptcy filing and no earlier default on a funding agreement
Entity typeSole-proprietor builders are eligible; non-profit developers are not
Added state rulesBuilders based in California or New York face extra restrictions on this tier

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 funding: which jobs, which product

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.

Commercial vs. residential

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.

Progress billing and retainage

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.

Worked example

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.

Equipment

For machines with a vendor quote, an equipment loan is usually cheaper. See equipment financing for a worked $60,000 example.

What commercial construction companies use funding for

Project mobilization

Deposits, permits and early materials before the first draw.

Carrying subs between draws

Paying trade partners on time while owner payments process.

Equipment

Lifts, loaders and trucks that cut rental costs.

Bonding capacity

Working capital that supports larger bonded bids.

Retainage gap

Bridging closeout while retainage is held.

Worked example: a commercial construction company

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.

How it works

1. Apply in minutes

Pull recent operating-account statements; progress draws, deposits and retainage releases show the company's real volume.

2. Same-day decision

Draw timing, years building and open positions shape the decision, with the owner's credit as one input.

3. Review your terms

Before you sign, the amount, term and total cost are in writing, so payments can be lined up with the draw schedule.

4. Next-day funding

Once signed, money normally hits the account the next business day, ahead of the next sub payment run.

Common questions

Can a general contractor qualify with slow owner draws?

Yes. Draw delays are normal in commercial work; the review looks at how the account holds up between payments.

How much can a commercial construction company borrow?

Pay-application deposits set the size, inside a $10,000–$350,000 line of credit or a $10,000–$250,000 term loan.

Does retainage held by the owner count against us?

No. Retainage is standard; only money that actually reaches the account is reviewed.

Are there extra rules for construction on the revenue-based tier?

Yes. Construction files on that tier need $500,000+ in monthly revenue, 5 years in business, 10+ monthly deposits and a commercial business location.

Will checking eligibility affect the builder's credit?

No. The check leaves the score untouched, and construction companies get a same-day decision.

Commercial construction companies: check your options

Mobilizing a job or carrying subs between draws — commercial builders get a same-day decision, without any credit impact.

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