Guide · Published 30 October 2026
I'm a subcontractor and the GC pays net 60 — how do I cover payroll and materials meanwhile?
Most subcontractors cover a net-60 gap with a revolving line of credit. Our Drawline runs $10,000 to $500,000 at 1.8% to 4% per 30 days on the drawn balance only: draw for payroll or a supply order, repay when the pay app clears, draw again. If your pay apps are already approved by creditworthy GCs, invoice factoring advances 70%–85% of the non-retained billing instead — and neither product has a minimum credit score.
$0 to apply · Soft credit pull · No impact to your credit score · 4-minute application
Who funds what. Working capital and the Drawline line of credit are underwritten and funded in-house by Jobsite Funding. Invoice factoring is placed with specialty construction factors, and term loans and SBA loans are placed with our bank and SBA lending partners. On a partner product we underwrite the file and name the partner before you sign anything.
Why net 60 turns into a payroll problem
Net 60 rarely means 60 days from when you did the work. You bill at the end of the month, the GC reviews and approves the pay application, the owner pays the GC, and then the GC pays you. Industry payment research cited on this site puts the average subcontractor wait at 51 to 56 days after submitting a pay application, with construction days-sales-outstanding averaging 83 days. Your crew still gets paid every Friday, and your supply house usually wants its money in 30.
Then there is retainage: 5% to 10% of every certified billing held until substantial completion. So the gap is not a one-time event. It reopens on every job, every billing cycle. That is the single most useful fact for choosing a product, because a tool built for a one-time need will be the wrong shape for a gap that repeats.
Three ways to bridge it
| The Drawline | Invoice factoring | Working capital | |
|---|---|---|---|
| Underwritten by | Jobsite Funding, in-house | Specialty-factor partner | Jobsite Funding, in-house |
| Amount | $10,000–$500,000 line | 70%–85% of the non-retained billing | $10,000–$2,000,000 |
| Cost | 1.8%–4% per 30 days on the drawn balance only | 1.5%–5% per invoice | A fixed total cost in dollars, disclosed before you sign |
| Your GC is contacted | No | Yes — notice of assignment | No |
| Covers payroll before you bill | Yes | No — it needs an approved invoice | Yes |
| Speed | 24 hours to open; same-day draws before 2:00 PM ET | 3–7 business days to set up, then 24–48 hours per advance | 24 hours |
| Minimum credit score | None | None — priced on your GC's credit | None |
| Best when | The gap repeats every month | Approved pay apps, slow but creditworthy GCs | One large, one-time need |
The Drawline: built for a gap that repeats
A revolving line matches the net-60 cycle. Draw on Monday for payroll or a materials order, pay only on what you pulled, repay in full or in part when the pay app clears, and the line restores for the next job. An undrawn line costs $0, there is no draw fee, and the minimum draw is $2,500.
Here is the published example from our Drawline page: draw $40,000 for a supply-house order, repay it in 50 days when the pay app clears, and at 2.5% per 30 days the cost is roughly $1,667. The Drawline is unsecured and cash-flow-based. We do not file against your contract proceeds and your GC is never contacted. In-house products do carry a personal guarantee from an owner of 20% or more.
When factoring is the better fit
Construction factoring is the right answer when you are a commercial sub with a steady roster of creditworthy GCs, consistent approved pay apps, and a volume problem rather than a credit problem. The factor buys the GC's obligation to pay, so your own credit matters less than your billing accuracy and lien position.
Know the trade-offs. Retainage is carved out first: on a $60,000 certified billing with 10% retainage, the factorable base is $54,000, and the advance is 70%–85% of that. Your GC receives a notice of assignment. And never sign an unconditional lien waiver before the money is in your account.
When one-time working capital makes more sense
If the problem is a single spike — two jobs mobilizing in the same month, or a large materials buy — working capital funds $10,000 to $2,000,000 over 3 to 18 months with weekly remittance. We can set the first remittance up to 21 days out so it lands after your next pay app clears, and paying off early takes up to 30% off the remaining cost of funding.
How we read a sub's file
We gate on $180,000 in trailing-12-month deposits and 6 months in business, not on your slowest three months. Up to 2 months under $5,000 are allowed with no explanation. Approved pay applications, signed subcontracts with a schedule of values, and retainage receivable count as revenue you have earned but not yet been paid, and the offer is sized off your 3 strongest consecutive months.
What you'll need
- Your EIN and business legal name. Sole proprietor, LLC, S-corp, C-corp and partnership are all eligible.
- 6 months of business bank statements — PDF upload, or link the account securely in about 60 seconds, which also lets us pull a 12-month deposit summary.
- A driver's license and a voided business check.
- Approved pay applications (G702/G703 or equivalent) and signed subcontracts with a schedule of values — they count as revenue evidence and frequently move an offer.
- A retainage schedule by job, with release conditions, if you have retainage outstanding.
- For factoring only: GC contact details for credit checks and the notice of assignment, lien waiver templates, and proof of general liability and workers’ compensation.
Keep reading: the Drawline · invoice factoring · working capital · funding a new job before the first draw · the draw gap explained · all guides
Questions that usually follow
- Can a subcontractor get a line of credit with no minimum credit score?
- Yes. The Drawline carries no minimum credit score. It is underwritten on trailing-12-month deposits, deposit consistency and your job documentation. You need 6 months in business and $180,000 in trailing-12-month business deposits, and in-house products require a personal guarantee from an owner of 20% or more.
- Will my GC find out I am using financing?
- Not with the Drawline or working capital — neither involves your GC, and there is no notice of assignment. Invoice factoring is different: it requires a notice of assignment to the GC, because the factor is buying the GC's obligation to pay.
- Can I factor my retainage?
- Not under standard factoring, which advances only against the non-retained portion of a billing. Some partner factors offer a separate retainage advance of 60%–75% of the retainage balance at a 2%–4% fee, usually only at or near substantial completion with a documented release schedule.
- How fast can I cover this week's payroll?
- Complete files received before 11:00 AM ET fund the same business day, and 24 hours is typical. Once a Drawline is open, draws requested before 2:00 PM ET land the same day by ACH.
- What does a Drawline cost on a materials order?
- 1.8% to 4% per 30 days on the drawn balance only. On the published example, a $40,000 supply-house draw repaid in 50 days at 2.5% per 30 days costs roughly $1,667. An undrawn line costs $0.
Payroll is Friday. The GC is net 60.
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