Winning a large construction contract can be a major opportunity for any general contractor. However, these projects also come with their own unique financial challenges, including large gaps between when expenses are due and when payments are received. Even highly profitable jobs can create financial strain when expenses come due before payments arrive.
That is why many contractors turn to business loans to keep projects moving without disruption. Below are scenarios where accessing a business loan can help protect project profitability.
Managing Cash Flow During Long Builds
Construction timelines can stretch for months or longer. Progress payments may arrive in stages, while expenses continue weekly or even daily. This creates cash flow strain, especially when managing multiple projects at once.
Business loans for general contractors, such as those offered through Mulligan Funding, can help bridge the gap between expenses and incoming payments1. By accessing working capital, contractors can maintain steady operations, avoid delays, and take on larger contracts without waiting for client payments to clear.
Upfront Costs in Large Construction Projects
Every large project begins with significant upfront expenses. From mobilizing crews to securing materials and equipment, these early costs can limit a general contractor’s ability to cover fixed expenses. Additionally, these costs can limit a contractor’s ability to bid competitively on larger projects.
Many contractors use business loans to cover these early expenses. Access to capital upfront allows projects to launch on schedule and reduces the risk of cash shortages before the first payment is received.
Labor, Materials, and Subcontractor Payments
Payroll and subcontractor payments are among the most critical expenses in construction. Workers and vendors expect to be paid on time, regardless of when the client pays the invoice.
Rising material costs can also create unexpected funding gaps. Access to financing helps contractors maintain strong relationships with subcontractors and suppliers, which is essential for long-term growth.
Final Note
Large construction projects require careful financial planning. While general contractors may not receive payments immediately, expenses never pause. Accessing business funding through Mulligan Funding can help general contractors stay on track, manage cash flow, and confidently pursue larger opportunities1.
Curious to see how much funding you may qualify for through Mulligan Funding with no impact on your credit score? Get started with our simple online application here: [Link to Application].
The information shared is intended to be used for informational purposes only and you should independently research and verify.
Note: Prior to January 23, 2020, Mulligan Funding operated solely as a direct lender, originating all of its own loans and Merchant Cash Advance contracts. From that date onwards, the majority of funding offered by Mulligan Funding will be by Loans originated by FinWise Bank, a Utah-chartered Bank, pursuant to a Loan Program conducted jointly by Mulligan Funding and FinWise Bank.