What Every Subcontractor Needs to Know About Short-Term Capital

Subcontractors are the backbone of every project—but when cash flow gets tight, they're often the first to feel it and the last to get paid. That's why understanding and using short-term capital can be the difference between staying stuck and scaling up.

This guide breaks down what subcontractors need to know about short-term funding, how it works, and how to use it wisely without putting your business at risk.

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The Reality for Most Subs

Subcontractors face unique cash flow challenges:

• Payments delayed until the GC or client gets paid
• Upfront labor, material, and equipment costs
• Seasonal demand spikes that stretch your reserves
• Little leverage to push for faster pay

According to Levelset, subcontractors wait an average of 83 days to get paid.

That's a long time to float payroll and materials.

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What Is Short-Term Capital?

Short-term capital is a form of business funding designed to:

• Bridge gaps between billing and payment
• Cover upfront job costs
• Keep operations moving when revenue is delayed

Unlike long-term loans, this funding is:

• ✅ Fast (funded in 24–72 hours)
• ✅ Flexible (can be used for anything: labor, rentals, insurance, etc.)
• ✅ Short-duration (usually 6–18 months)

It's perfect for subcontractors who just need the job to start or finish—not years of debt.

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How Subcontractors Use It

Here are the most common ways subs use short-term capital:

1. Front Labor Before the First Draw

Crews need to be paid weekly—before the first invoice is approved. Funding helps you stay on schedule without stress.

2. Buy Materials Without Waiting on the GC

Lock in pricing, get deliveries lined up, and avoid waiting on upstream cash.

3. Bridge Slow-Paying Jobs

If a project stretches out or the GC is on net-60, use capital to float expenses while staying operational.

4. Expand to Take On More Work

Have a new opportunity but no working capital? Use short-term funding to scale smart.

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What Makes SCG Ideal for Subcontractors

At SCG, we work with trades across the board—electrical, drywall, plumbing, HVAC, framing, and more.

Why subcontractors choose us:

• Minimal paperwork (just bank statements and a short form)
• Approval in as fast as 24 hours
• No collateral required
• Prepayment discounts if you repay early

We're not a bank—we're a construction partner.

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Final Thoughts

As a subcontractor, you're used to waiting—on approvals, on checks, on GCs. But your growth can't wait.

With short-term capital, you don't have to choose between cash flow and opportunity. You can move now and get paid later.

SCG helps subcontractors take on more work with less friction.

👉 Talk to us today and see how fast funding can support your next project.

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Note: This content is for informational purposes only and does not constitute financial advice. Always consult a financial advisor when considering business funding.