Mobilization
Moving equipment, setting up a site or office, and onboarding crews before work can be billed.
Texas Contract Financing
Working capital to mobilize crews, buy materials and meet payroll on a signed commercial or government contract before the first progress payment arrives.
Win it, then fund it
Contract Financing in Texas
Landing a larger commercial or public contract usually means spending heavily before you can bill a cent. Crews need to be hired and paid weekly, equipment has to be mobilized, and materials suppliers want payment on short terms. Meanwhile the first progress payment might be 45 to 90 days away once the owner, general contractor or agency processes it.
Contract financing bridges that gap by funding against the work you are contracted to perform and the billings it will generate. Once you start invoicing, those receivables can be advanced through factoring so cash keeps pace with the job. It is common in construction, government contracting, security services and other labor-heavy work.
- Covers mobilization, materials and the first payroll cycles
- Based on the strength of the contract and the paying party
- Ongoing billings can be factored at 80% to 90% advances
- Factoring limits from $100K to $100M as contracts grow
- Suitable for commercial and government work across Texas
What Contract Financing Can Cover
The early weeks of a contract carry the heaviest costs and the least cash coming in. Funding is aimed at those pressure points.
Materials and Supplies
Paying suppliers on their terms so materials are on site when the schedule needs them.
Weekly Payroll
Keeping field staff and subcontractors paid while the first pay application works through approval.
Bonding and Insurance Costs
Meeting up-front costs that larger contracts often require before work begins.
Retainage Gaps
Easing the cash squeeze when a share of each payment is held back until the job is complete.
Contract Financing vs. a Bank Loan
Banks tend to lend against your history and hard assets, which can leave a growing contractor short just as the biggest job of its life begins. Contract-based funding looks at the work in front of you instead.
| Feature | Contract Financing and Factoring | Bank Loan |
|---|---|---|
| What approval rests on | The signed contract and the credit of the owner, GC or agency paying it. | Your years in business, financial statements and personal credit. |
| Speed | Structured around the job; invoices processed within 48 hours once billing starts. | Underwriting can take weeks, often longer than mobilization allows. |
| Scaling with the job | Funding rises as billings rise. | Fixed amount; more capital means a new application. |
| Collateral | Contract receivables are the main basis. | Often equipment, property or a personal guarantee. |
| Repayment | Settled from the contract payments themselves. | Fixed instalments regardless of when you get paid. |
Government Work Has Its Own Paperwork
Public contracts are attractive because the payer is reliable, but the process is slower and more formal. For federal receivables, assigning payment to a funder usually requires the Assignment of Claims Act process, which involves notice to and acknowledgment by the contracting officer. State and local agencies may have their own requirements, so we review the contract terms before structuring anything.
On commercial jobs, the key documents are usually the subcontract or prime contract, the schedule of values and the pay application process. We will walk through how billing flows on your project and how funding fits around it. See how it works for the general factoring process.
Talk Through Your Contract
What to Have Ready
Contract financing is reviewed around the specific job. These documents help us size and structure funding quickly.
The Signed Contract
Including scope, payment terms, retainage and any clauses on assignment of payments.
Budget and Schedule
Your cost estimate and timeline, showing when the heaviest spending falls.
Billing Process
How and when you invoice, such as monthly pay applications or milestone billing.
Existing Receivables
Any current invoices that could be factored alongside the new contract.
Contract Funding
Get paid faster with contract financing in Texas.
Call now or request a free estimate to see how contract financing can support mobilization, materials, and payroll on newly awarded contracts.
FAQ
Texas Contract Financing FAQs
Straight answers for Texas businesses comparing invoice factoring options.
Free Estimate
Fast cash from your approved invoices
Talk with a Texas factoring team that understands payroll, receivables, slow-paying customers, and the pressure of keeping operations moving.
512 271 5100