Retainage holds back 5 to 10 percent of your payment until a project reaches completion, often for months after the work is done. Financing to cover retainage gives contractors working capital to bridge that gap instead of waiting on funds you have already earned.
Why Retainage Creates Cash Flow Gaps
Retainage is standard practice on most commercial and public construction contracts, and payment timing rules vary depending on the contract. On federal projects, the Prompt Payment Act requires government agencies to pay on time and pay interest on late payments, but retainage held by a general contractor or property owner on private and state projects follows different rules and isn’t covered by that Act. Some states cap retainage or set release timelines, while others leave the terms to the contract. Either way, your payroll, suppliers, and equipment payments don’t wait for retainage to release.
What This Financing Covers
You use retainage financing to keep payroll running on a job that reached substantial completion months ago but hasn’t released its final payment. You use it to take on a new contract while retainage from a previous job is still outstanding. You use it to pay subcontractors on schedule even though your own retainage hasn’t been paid out yet, or to close out final punch-list costs before the retainage check arrives.
Financing Options
A construction line of credit fits retainage gaps well, since you draw funds while waiting on release and repay once the retainage comes in. Platform Funding also offers revenue-based financing for contractors whose retainage overlaps with seasonal cash flow swings. Review the full set of financing built for contractors on the Construction Financing hub.
Eligibility
- 6+ months in business
- $12,500+ average monthly revenue
- 3 months of business bank statements
- No tax returns required
- No collateral required
- No minimum credit score
How It Works
Apply online in under 10 minutes and submit three months of bank statements. Platform Funding delivers a decision in 24-48 hours, with funds typically arriving the next business day.
Frequently Asked Questions
Can I get financing while my retainage is still outstanding? Yes. Platform Funding approves based on your business bank deposits, not on whether a specific invoice or retainage amount has been paid.
Does retainage financing require collateral? No. There is no collateral requirement to qualify.
How is this different from waiting for retainage to release on its own? Financing gives you the capital now instead of waiting months for release, so payroll, suppliers, and new bids don’t depend on a single client’s payment timeline.
Apply Today
Apply Now, submit three months of bank statements, and get a decision in 24-48 hours.
