How net terms and retainage create the gap
Crew payroll often hits every week, material suppliers want payment before or upon delivery, and the general contractor or owner pays on net-30, net-45, or net-60 after you submit a pay request. Retainage — commonly five or ten percent — stays held until substantial completion or final acceptance, so even on-time payers send less cash than your invoice shows.
This tool builds a week-by-week view through the collection tail: cash out while the job is active, cash in after terms (plus optional late-pay days), and retainage when you modeled it to release. Any business that invoices on terms can use the same math; we feature contractors because the mismatch between weekly outflows and slow receivables shows up often on commercial jobs.
Reading your result
The lowest point on the balance line is the stress test. If it drops below your chosen cushion — not only below zero — the bridge number is the extra cash or credit that would keep you at that floor through the worst week. A job can look profitable while the checking account still dips; that is a timing problem, not necessarily a bid problem.
Illustrative example (not a quote)
The pre-filled example is a $280,000 job over thirteen weeks with monthly progress billing, net-60 plus ten late days, and ten percent retainage releasing four weeks after the last bill. Weekly payroll and materials are modeled near eighty-five percent of contract value so the job is profitable overall, with a mid-job valley before receivables land — the shape many owners recognize even when the dollars differ. Change every input to match your contract; the example is labeled and not stored.
What may fit (education only)
- Line of credit — commonly used when several jobs overlap and you need to cover recurring weekly gaps, then repay as invoices collect.
- Invoice factoring — may fit when one large slow-pay receivable dominates the bridge and you want to access a portion of that invoice.
- Working capital — may fit a one-off timing squeeze on a single job without an ongoing revolver need.
LoanHelp does not offer merchant cash advances or sales-based financing through our inquiry form. We do not quote rates, promise approval, or guarantee speed — the financing partner sets terms after they review an inquiry.
Levers that are not financing
- Ask for a mobilization deposit or front-loaded billing schedule in the contract.
- Invoice progress more often than monthly if the contract allows.
- Negotiate shorter pay terms or partial retainage release at defined milestones.
- Stagger material purchases to match when you expect cash, when suppliers will agree.