Fund the work before the progress payment.

Map each job’s cash dates

A signed job is not the same as cash in the bank. Build a weekly schedule for supplier deposits, delivered materials, crew payroll and overhead. Put the expected customer receipts on the same timeline. Distinguish the date you can invoice from the date the customer is expected to pay. If a contract includes retained payments, show their expected release separately rather than treating the full invoice as available cash.

Separate service calls paid promptly from project work billed in stages. A blended monthly revenue figure can hide the pressure created by one large mobilization. For each major job, note the billing milestone, approval dependencies, disputed amounts and who controls the next step. Use the contract and actual collection history rather than a salesperson’s best-case date.

Separate repeat job costs from long-lived purchases

A recurring gap between job spending and collection is different from buying a vehicle or specialized testing equipment. Ask whether a proposed structure replenishes as receipts arrive, what limits future availability, and what happens when a project runs longer than expected. For equipment, consider the period the asset will support revenue alongside the payment schedule.

Do not assume that a signed contract, unbilled work or retained amount can support borrowing. Ask the provider exactly what documentation and receivables it accepts, how disputes or customer concentration affect availability, and when funds could actually be accessible. Compare total costs and payment dates, not just the headline amount.

Questions to answer before adding another crew

Which confirmed jobs support the additional payroll, and when do their receipts arrive? How much overtime, training or supervision is needed before the crew becomes productive? Would the business still cover payroll and financing payments if the largest customer paid later? What is the plan if a scheduled start slips while employees remain on payroll?

Consider operational alternatives alongside financing: negotiate a feasible billing schedule, follow up on approved invoices, stage material deliveries or sequence overlapping starts. These are discussion points, not assumptions that a customer or supplier will agree. A financing payment should be tested against the revised cash calendar, including a slower collection case.

Prepare a contractor capital brief

Bring a current job list showing contract value, work completed, amounts billed, amounts collected and remaining costs. Add receivables and payables aging, current financial statements, recent business banking history and an existing debt/payment schedule. Identify the specific jobs or expansion costs behind the request and the timing of the need.

A useful one-page summary states the purpose, estimated peak cash gap, expected collection sources, main timing risk and the contingency if that risk occurs. Start the inquiry with your business context; detailed supporting records can follow through the appropriate review process. This guide addresses an operating contractor’s cash needs. Buying a contractor requires a separate purchase, transition and buyer-contribution review.

Put your own numbers on one page

Record opening available cash, expected receipts by date, committed outflows, the minimum cushion you choose and the resulting lowest cash balance. Include existing obligations and any proposed financing payments. A shortfall against your cushion is a planning signal, not an approved borrowing amount.