Contractor financing covers the cash a construction business needs between paying crews and suppliers and collecting draws, plus the equipment it works with. Pinecroft Funding Group, a small-business funding broker in San Marcos, TX, helps Hays County builders and specialty trades match working capital, credit lines and equipment financing to the job cycle; lending partners decide and set rates and terms.
| Hays County construction employers | 764 in 2023, 64.9% under 5 employees (Census CBP) |
|---|---|
| Specialty trade contractors | 484 establishments (NAICS 238) |
| Building construction | 225 establishments (NAICS 236) |
| No-employee construction businesses | 3,424 in Hays County (Census NES 2024) |
| New housing units permitted | 4,595 in 2025; 5,405 in 2024 (Census BPS) |
| Who decides | The lending partner, never Pinecroft |
Construction in Hays County, TX
Construction had 764 employer establishments in Hays County in 2023, more than any other sector, employing 7,476 people with about $520.5 million in annual payroll. Of those, 496, or 64.9 percent, had fewer than five employees. Specialty trade contractors such as electricians, plumbers, HVAC, concrete and framing crews made up 484 of the total, and builders of buildings 225 (U.S. Census Bureau, County Business Patterns 2023).
Many more work alone. The county had 3,424 construction businesses with no paid employees in 2024, 2,374 of them specialty trades (U.S. Census Bureau, Nonemployer Statistics 2024). Those figures come from a different program and year than the employer counts and should not be added to them.
Residential building gives a sense of the workload: Hays County authorized 5,011 new housing units in 2023, 5,405 in 2024 and 4,595 in 2025, and 4,153 of the 2025 units were single-unit homes (U.S. Census Bureau, Building Permits Survey, county annual files).
Construction financing from the contractor's side
Most construction businesses are paid in stages. A builder or owner releases a draw when a phase is inspected or certified, often holds back a percentage as retainage until the job is complete, and pays on its own calendar. Meanwhile the contractor buys materials on supplier terms and meets payroll every week. Construction financing for a contractor is mostly about covering that gap, not about funding the building itself, which is the property owner's loan.
| Need | Usual fit | Why |
|---|---|---|
| Payroll and materials until a draw clears | Working capital | One gap with a known end date |
| Gaps on every job, in different sizes | A contractor line of credit | Draw only what each job needs, repay as draws arrive |
| A loader, excavator or trailer | Equipment financing | The machine secures the financing |
| A shop, yard improvements or a buyout | Term loan | A one-time cost paid off over years |
A line of credit for a construction company
For contractors who run several jobs at once, a revolving line usually fits better than a fresh loan each time. You draw for materials and labor on one job and repay when its draw clears, while the next job is starting. Partners offering construction lines often look at the contractor's history of completed work, its receivables and how much retainage is outstanding. Ask how the line is secured and whether the partner files against receivables or all business assets.
Working capital and retainage
Retainage ties up money a contractor has already earned until the end of a job, sometimes longer. A company that is otherwise healthy can be short because a few retainage payments are outstanding at once. When you calculate a working capital need, list outstanding retainage separately from regular draws, with the date each should be released, because a partner will ask how the funding will be repaid and retainage is often the answer.
Financing for government contractors
Public-sector work brings its own timing: long approval chains, set pay applications and payment schedules that do not bend for a contractor's payroll. Partners reviewing a government contractor will want to see the contract, the payment terms and the contractor's history with the agency. A credit line sized to the gap between pay applications is a common structure.
Construction equipment
Compact track loaders, skid steers, mini excavators, trailers and work trucks are usually financed against the machine itself. Partners care about make, model, age and hours as much as the business. How long you can finance equipment explains how partners set terms, and new firms can plan with the cost categories for starting a construction company in Hays County, TX. We do not arrange funding for trucking or over-the-road hauling.
What partners ask contractors for
- Business bank statements showing draws and payroll
- A current job list, with contract values, billed to date and retainage held
- Accounts receivable aging
- Equipment quotes, where equipment is involved
- Tax returns and, for larger requests, financial statements
- Proof the entity is active with the Texas Secretary of State
Each partner sets its own list and criteria.
Next steps
Permits and paperwork for jobs inside the city are covered in the San Marcos, TX contractor and permit checklist. The Hays County picture has wider figures, and funding by sector compares other trades.
By Pinecroft Funding Group · Updated