You finished the phase. The GC hasn’t paid you yet. And the supplier for the next phase — lumber, rebar, fixtures, whatever this job needs next — wants payment before the materials ship. This is one of the most common cash-flow traps in construction, and it isn’t a sign your business is in trouble. It’s built into how the industry pays.
Why This Happens on Every Job
Construction is the slowest-paying major industry in the country. Average days-sales-outstanding (DSO) in construction runs around 83 days, with estimates ranging roughly 51 to 90 days depending on the source — compare that to retail or e-commerce, which typically collects in 7 to 30 days. On top of that lag, most contracts withhold 5% to 10% of the contract value as retainage until the project wraps, and even a clean draw request commonly takes 5 to 10 business days to process once it’s submitted with complete documentation.
It’s also getting worse, not better. Recent industry data shows 82% of contractors now wait 30 days or more past the date they expected payment — up from 49% two years earlier — and subcontractors wait an average of about 56 days after submitting a pay application before the money actually arrives. None of that changes the reality that the next phase’s materials have to get ordered, and usually paid for, before that check clears. The gap between “work completed” and “cash in hand” is structural to the industry, and it widens exactly when you’re busiest.
Two Ways to Finance Construction Materials
Once you know this gap is structural and not a symptom of something wrong with your business, the real question is which financing tool matches how often it happens to you. REIL Capital has two products built for this specific problem, and which one fits depends on whether you’re dealing with a recurring pattern across jobs or a single, defined gap on one job.
A Recurring Gap Across Multiple Jobs: Line of Credit
If fronting materials before a progress payment lands is just how your business runs — you’re juggling this on more than one job at a time, or it happens every time you move into a new phase — a revolving line of credit is usually the better fit. Draw what you need to cover a materials order, repay it as the progress payment comes in, and the line resets and is available again for the next phase or the next job. You’re not reapplying every time the gap opens back up.
REIL Capital’s line of credit ranges from $25,000 to $400,000, with terms of 6 to 36 months. Eligibility typically starts around a 600 FICO score, at least one year in business, and about $300,000 in annual revenue (roughly $25,000 per month).
A One-Off Gap on a Specific Job: Bridge / Working Capital
If this is a single, defined gap — one job, one phase, one materials order you need to cover before a specific payment lands, not an ongoing pattern — a bridge or working capital loan is built for exactly that. It’s a lump sum sized to a defined, short-term need rather than a standing revolving line, and it’s REIL Capital’s fastest funding product: as fast as 24 to 48 hours once approved.
REIL Capital’s bridge and working capital financing ranges from $5,000 to $2,000,000. Eligibility typically runs around $25,000 per month in revenue, 6 months in business, and a 500+ credit score.
What About Invoice Factoring?
If what you’re actually holding is unpaid invoices for completed, billed work — not just a future draw you’re anticipating — advancing cash against those specific invoices is a separate option REIL Capital also offers; see REIL Capital’s construction invoice factoring page for how that works.
How to Decide Which One Actually Fits
You don’t need a complicated framework here — a few honest questions get you most of the way:
- Does this happen on more than one job, or does it feel like it will keep happening? That’s a line of credit. You want a tool that resets, not one you reapply for every time.
- Is this tied to one specific job and one specific payment you’re waiting on? That’s a bridge or working capital loan — sized to the gap, funded fast, and done once the payment clears.
- Not sure which camp you’re in? Default to the line of credit. A revolving line covers a one-off gap just fine, and it’s already in place the next time the same problem shows up — which, in construction, it usually does.
For the fuller picture on how each product works day to day, see our dedicated guides to a construction line of credit and construction bridge loans.
What You’ll Need to Apply
REIL Capital’s application takes about two minutes to complete. Approval is possible within 24 hours on some products, though timing depends on the specific product and your file — the fast funding window (24 to 48 hours) is specific to bridge and working capital financing once you’re approved, not a blanket promise across every product. Beyond the basics (time in business, monthly revenue, credit score noted above), expect to provide recent bank statements and basic business financials so REIL Capital can size the line or loan to what your job schedule actually needs.
The Bottom Line
A GC that hasn’t paid you yet doesn’t have to stall the next phase. If fronting materials is a recurring part of how you run jobs, REIL Capital’s line of credit ($25,000–$400,000, 6–36 month terms, typically 600 FICO / 1 year in business / $300,000 annual revenue) gives you a standing tool that resets between jobs. If it’s a single gap on one specific job, REIL Capital’s bridge / working capital financing ($5,000–$2,000,000, funded as fast as 24 to 48 hours once approved, typically $25,000/month revenue / 6 months in business / 500+ credit) covers the gap and closes out. Either way, the application takes about two minutes — start there and let REIL Capital help match the product to the job in front of you.
Frequently Asked Questions
What’s the fastest way to get cash for materials before a progress payment comes in?
For a single, defined gap on one job, REIL Capital’s bridge and working capital financing is the fastest option — funding as fast as 24 to 48 hours once you’re approved, in amounts from $5,000 to $2,000,000.
Can I use a line of credit for materials on more than one job at once?
Yes — that’s what a revolving line of credit is for. REIL Capital’s line of credit ($25,000–$400,000, 6–36 month terms) lets you draw for one job’s materials, repay as that job’s progress payment lands, and draw again for the next job or phase without reapplying.
Is invoice factoring better than a line of credit for unpaid GC invoices?
It depends on what you’re solving for. Factoring advances cash against invoices you’ve already billed for completed work; a line of credit or bridge loan covers costs you need to front before or during a phase, whether or not an invoice exists yet. REIL Capital offers construction invoice factoring as a separate option — see the construction invoice factoring page for details.
What credit score do I need to finance construction materials?
It depends on the product. REIL Capital’s line of credit typically requires a 600+ FICO score, at least one year in business, and about $300,000 in annual revenue. Bridge and working capital financing typically requires a 500+ credit score, 6 months in business, and around $25,000 in monthly revenue.
