Contractor Financing Programs
Construction contractors face capital requirements that differ fundamentally from real estate investors: working capital gaps between project completions, material deposits for multiple concurrent builds, payroll continuity during slow billing periods, and the front-loaded capital requirements of spec home construction where revenue arrives at sale completion, not during the build.
Our spec home construction loans fund the complete project: lot acquisition (or payoff of a lot previously acquired), hard construction costs, permits and impact fees, soft costs, and an interest reserve covering the build period. Unlike bank construction loans that require presales or substantial equity injection before funding, we evaluate spec home projects on market demand, your construction capability, and a realistic absorption timeline for the specific Palm Beach County submarket.
For custom home builders working for client-buyers, we provide construction financing aligned with your draw and payment schedules. Client-funded construction has cash flow advantages but timing gaps still emerge — particularly when owner change orders create scope expansion that outpaces client deposit schedules. Our construction lines of credit for active builders provide the float capital needed to keep multiple custom projects moving simultaneously without the administrative burden of managing separate term loans for each.
- Spec home construction loans without presale requirements
- Custom construction financing aligned with client payment and draw schedules
- Portfolio facilities for builders with multiple concurrent projects
Spec Home Building and Development Financing
Spec home construction is particularly active in Jupiter, Tequesta, North Palm Beach, and northern Boca Raton — markets where new construction buyers expect contemporary luxury finishes, smart home technology, and outdoor living spaces that resale inventory doesn't provide. Builders who understand their target buyer profile and can consistently deliver product that sells in 30-60 days of completion build successful spec programs that we can finance on repeat.
We track absorption data for new construction across Palm Beach County submarkets — days on market, sale price vs. listing price, buyer concession patterns — and incorporate this into our spec loan underwriting. A spec home in a market where comparable new construction is selling in 45 days at list price warrants different leverage and term structure than one in a market where absorption is running 6 months. We underwrite each spec project on the specific submarket dynamics rather than generic county-level assumptions.
For builders developing multiple spec homes simultaneously — often in the same subdivision or neighborhood — our portfolio construction facilities provide a master line that funds draws across projects without separate loan applications. This reduces per-project transaction costs and accelerates capital deployment for builders who need to keep multiple lots moving through the construction cycle.
- Spec home programs in Jupiter, Tequesta, North Palm Beach, and Boca Raton luxury markets
- Submarket-specific absorption analysis in spec underwriting
- Portfolio construction lines for builders with multiple concurrent spec projects
Hurricane Season Construction Planning and Working Capital
Hurricane season (June 1 - November 30) creates predictable operational challenges for Palm Beach County contractors: roofing subcontractors become unavailable as they chase storm repair work, material deliveries slow during active weather periods, municipal inspections back up following storm events, and client-buyers become more cautious about acquisition decisions when the season is active. Experienced builders plan their construction schedules around the season — exterior and structural work concentrated December-June, interior work filling the weather-sensitive months.
We structure construction loan terms around this seasonal reality. We don't impose maturity dates that force completion pushes during peak hurricane season, we build extension provisions for documented weather delays, and we size interest reserves to cover the months where construction productivity is naturally constrained. Andrew (1992), Wilma (2005), and Irma (2017) all demonstrated that mid-project storm damage can materially impact construction cost and timeline — our loan structures don't pretend this risk doesn't exist.
Working capital financing for contractors — bridging between project completions, funding overhead during slower periods, and managing the billing lag that commercial general contracting frequently involves — uses real estate collateral (owned properties, completed spec inventory under hold, investment properties) to provide liquidity without the restrictive covenants of conventional business lines of credit.
- Construction loan terms structured around the December-June optimal building window
- Extension provisions for hurricane season weather and inspection delays
- Working capital financing using real estate collateral for overhead management