Contractor financing helps construction businesses pay crews, buy materials and finance equipment while waiting on draws and progress payments. Orchardmark Financial, a small-business funding broker in Scranton, Pennsylvania, explains the options to Lackawanna County's 457 construction employers and sends requests to lending partners, which decide and set every rate and term.
| Lackawanna County employers | 457 construction establishments (CBP 2023) |
|---|---|
| Specialty trade contractors | 304, with 2,235 paid employees |
| Under five employees | 303 of 457 |
| No-payroll construction businesses | 1,424 (NES 2024) |
| New housing units permitted | 277 in 2025 (BPS) |
Construction in Lackawanna County, PA
Lackawanna County had 457 construction employer establishments in 2023, with 3,483 paid employees and about $248.2 million in annual payroll; 303 of them had fewer than five employees (U.S. Census Bureau, County Business Patterns 2023).
| Segment | Employer establishments | Paid employees | Under five employees |
|---|---|---|---|
| Specialty trade contractors (NAICS 238) | 304 | 2,235 | 194 |
| Construction of buildings (NAICS 236) | 128 | 697 | 100 |
| All construction (NAICS 23) | 457 | 3,483 | 303 |
Source: U.S. Census Bureau, County Business Patterns 2023. A further 1,424 construction businesses in the county had no paid employees in 2024, 939 of them specialty trades (U.S. Census Bureau, Nonemployer Statistics 2024). The two programs cover different years and are not added together.
What the permit numbers show
Building permits in Lackawanna County authorized 277 new housing units in 2025, up from 250 in 2024 and 236 in 2023; 227 of the 2025 units were single-family (U.S. Census Bureau, Building Permits Survey). These counts cover new homes only, not remodels or commercial work, so they say little about most contractors' backlogs. They do show that residential building in the county is steady rather than booming.
How does construction business financing work?
Most of it falls into three groups. Working capital and credit lines cover labor and materials while a job is underway. Equipment financing pays for machines and vehicles, secured by the equipment. Term loans pay for larger one-time costs, such as a yard, a shop or a buyout. A construction loan to build a house or commercial building is a different product, a real estate loan, which Orchardmark Financial does not arrange.
Working capital for a construction company
The gap is built into the trade. A subcontractor pays its crew weekly, buys materials on short supplier terms, and then waits for a general contractor to be paid by the owner, with retainage often held back until the job is closed out. Working capital financing bridges that period when the job and its pay schedule are clear.
Partners want to see the contract, the pay application history, an accounts receivable aging list and how much retainage is outstanding.
Contractor lines of credit
A credit line suits a contractor with several jobs at different stages, because draws can follow each job's material purchases and be repaid as each pay application clears. Partners usually review the line once a year and look at whether it came back down between jobs. A line drawn to the limit all year suggests the business needs longer-term funding or better pay terms.
Financing for government contractors
Public work pays reliably but slowly, and often requires bonding and detailed pay applications. Some partners will fund against a public contract or its receivables; others will not touch it. Expect questions about the contracting agency, the payment terms in the contract and whether payments can be assigned.
One job, followed week by week
A hypothetical, to show timing only. A specialty contractor signs a job billed monthly. In weeks one to four it pays its crew every Friday and buys materials up front. It submits the first pay application at the end of the month; the general contractor pays it about a month later, less retainage. By the time that first check arrives, the contractor has carried roughly two months of labor and materials. That carrying period, not the size of the contract, is what the funding has to cover.
How to finance construction equipment
Excavators, skid steers, lifts, trailers and work vans are usually financed one unit at a time through equipment loans, leases and EFAs, with the machine as collateral. Used units are common; expect questions about hours, condition and the seller. Work vans and pickups for the trade qualify; trucking and freight hauling do not.
Documents partners ask contractors for
- Recent business bank statements.
- Business and personal tax returns.
- A list of current jobs with contract values and percent complete.
- Accounts receivable aging, including retainage.
- Equipment quotes or invoices.
- Insurance certificates and any bonding information.
Lackawanna County context is on who runs businesses near Biden Street, and other sectors are under the sector pages.
By Orchardmark Financial · Updated
