By K2 Capital | March 3, 2026 | Contractor line of credit, awarded backlog financing, working capital for self-performing contractors
The pattern is familiar for contractors scaling into larger work. Contracts get awarded, crews mobilize, payroll starts, and materials ship. But payment does not arrive until inspections are completed and invoices are approved, which can take four to six weeks or longer. The gap between execution and collection creates real strain.
Recent Example
A commercial painting company had secured relationships with two of the nation’s largest homebuilders and was being awarded contracts to paint 300 to 600 homes at a time. Each award required roughly $350,000 in weekly payroll plus paint and drywall materials for four to six weeks before inspections were completed and invoices approved.
We structured a solution by leveraging their master services agreements, tying them back to historical purchase orders, and mapping funding directly to job flow. The result was an initial $1,700,000 working capital facility that scaled to $3,500,000 within a few months.
The company could execute at full speed, meet payroll without stress, and continue saying yes to large awards without risking their builder relationships.
How It Works
The facility functions as a contract-backed revolving line. The contractor establishes a dedicated funding account tied directly to each awarded job. Draws are available as soon as purchase orders are issued, covering payroll and materials in real time.
Once the general contractor or builder completes inspections and approves the work, payments are remitted directly back into the same account. Financing costs apply only for the period the capital is in use.
The program works with bonded and non-bonded jobs and is particularly effective for contractors preserving bonding capacity. It can complement existing surety programs without interference.
Designed for contractors where growth is driven by awarded backlog, not balance sheet size.
| Borrower Profile | Self-performing contractors on large commercial or public projects; B2G contractors navigating compliance-heavy scopes and slow pay cycles; operators scaling into larger awards; contractors preserving bank lines for bonding capacity |
|---|---|
| Primary Uses | Payroll and labor mobilization; materials and supplier payments; equipment rental or mobilization costs; project-based expenses tied to awarded work |
| Contract Profile | Executed contracts, master service agreements, or awarded purchase orders; repeat builder or agency relationships preferred; clear scope, timeline, and billing milestones |
| Bonding | Works with bonded and non-bonded jobs; effective for preserving bonding capacity; complements existing surety programs |
| What Makes This Capital Different | Availability tied to awarded work, not financial statements; draws aligned to job mobilization and production cycles; repayment from contract proceeds; scales alongside contractor growth |
If this sounds like a fit for your situation, submit a request with some additional context. We will review it and determine whether this capital partner aligns with your situation.