Can a contractor get funding while waiting on retainage?
Yes. Retainage held back on completed work is a timing problem, not a credit problem, and it is one of the most common reasons a profitable contractor runs short. Revenue-based working capital is underwritten on your deposit history, so money held in retainage does not count against you — though it also does not count as revenue until it lands.
Does retainage count as revenue to an underwriter?
Not until it is deposited. Underwriters read the bank statements, so retainage sitting with a general contractor is invisible to them. That is worth stating in the file, because it explains why your deposits look lighter than your contract value.
Is factoring or working capital better for retainage?
They solve different halves. Factoring advances against a specific unpaid invoice; working capital is a lump sum against overall revenue. Retainage is often awkward to factor because it is contingent on final acceptance, so contractors more often take working capital and let the retainage arrive on its own schedule.
What should a contractor have ready?
A signed application, three months of business bank statements, and a short explanation of the retainage position — who holds it, roughly how much, and when it releases. That last item is not always required, but it consistently makes the file easier to place.
Check what you qualify for
Four questions, a soft pull only, and no upfront fee. We are a broker: we place your file with funders and are paid by the funder on close, so nothing is charged to you to apply.
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