Construction contractors operating in Park City and the surrounding Wasatch Mountain region encounter unique financing demands that traditional lending struggles to address. The area's robust building activity, from luxury ski homes and mountain retreats to commercial developments supporting the growing community, creates consistent demand for skilled contractors who can deliver quality work on schedule. However, the financial realities of construction businesses often create cash flow mismatches between project expenses and client payments.
The construction industry requires significant upfront investment in materials, specialized labor, and equipment before receiving payment from clients. Progressive billing arrangements, retainage requirements, and payment delays compound these working capital challenges. Meanwhile, growth opportunities require capital for bonding capacity, additional equipment, and expanded crews. Hard money lending provides contractors with flexible, real estate-secured financing that bridges these timing gaps and supports business development.
Our contractor financing programs understand the cyclical nature of construction work and the project-based revenue patterns that characterize the industry. We structure loans around your specific needs, whether funding materials for a major project, acquiring equipment to expand capabilities, or providing working capital during the winter slowdown that affects many Park City area builders. By using real estate equity as collateral, we can provide capital without the restrictive covenants and reporting requirements that burden traditional construction lending.
How We Help
Project materials financing enables contractors to purchase lumber, concrete, roofing materials, and other substantial inputs without depleting operating cash reserves. This capability proves particularly valuable for larger projects with significant material requirements or when suppliers offer favorable pricing for upfront payment. Our materials financing ensures you can accept profitable projects without cash flow constraints.
Payroll funding addresses the timing mismatch between weekly or biweekly payroll obligations and the 30-60 day payment cycles common in construction. Maintaining skilled crews requires consistent payroll regardless of client payment timing. Our working capital loans provide the liquidity to retain experienced workers during payment delays, preserving team continuity and project momentum.
Equipment acquisition financing supports contractors expanding their capabilities or replacing aging machinery. Whether you need excavators, skid steers, work trucks, or specialized tools, our equipment loans use real estate collateral to fund these capital investments. This approach typically delivers better terms than equipment leasing and provides ownership equity that strengthens your balance sheet.
Bonding capacity enhancement helps contractors qualify for larger public and commercial projects requiring performance and payment bonds. Our financing can provide the working capital reserves and financial statement strength surety companies require when underwriting bonds. This expanded bonding capacity opens new market segments and larger project opportunities.
Seasonal bridge financing carries contracting businesses through winter slowdowns common in the Park City area. While some contractors transition to interior work or snow removal, many experience significant revenue reductions during off-peak months. Bridge loans provide operating capital during these periods, ensuring fixed expenses remain covered until spring construction activity resumes.
Common Challenges
Construction contractors face financing obstacles that reflect the industry's unique risk profile and cash flow characteristics. Bank lenders often view construction as high-risk, requiring extensive financial documentation, personal guarantees, and restrictive loan covenants that interfere with business operations. Our asset-based approach evaluates real estate collateral rather than applying industry bias to lending decisions.
Retainage and payment delay issues create persistent working capital pressure. When clients hold 5-10% of contract value until project completion, and final payments trail invoicing by 30-60 days, contractors must self-finance significant project portions. Traditional lines of credit often prove insufficient for these needs, particularly during periods of growth when multiple projects overlap.
Bonding requirements increasingly limit contractors' ability to compete for desirable projects. As project owners and public agencies raise bonding thresholds, contractors need financial partners who can help them meet surety company requirements. Our lending programs can strengthen the financial position bonding companies evaluate when determining capacity.
Our Approach
We begin contractor relationships by understanding your specific trade, typical project types, and current growth objectives. This industry knowledge informs our loan structuring, ensuring terms align with construction payment cycles and seasonal patterns. We recognize that contractors need partners who understand the difference between residential remodeling and commercial ground-up construction, adjusting our approach accordingly.
Our underwriting process values your project pipeline and client relationships alongside real estate collateral. While property secures our loans, we recognize that construction businesses generate repayment capacity through completed projects. This balanced evaluation produces loan structures that support rather than constrain your operational needs.
Throughout the lending relationship, we maintain contractor-friendly servicing practices. We understand that change orders, weather delays, and project modifications affect construction timelines, building flexibility into our loan agreements. Our goal is supporting your construction business success through reliable capital access, not maximizing returns through penalty fees and rigid enforcement.
Serving Our Community
The Park City construction market encompasses luxury residential projects, commercial developments, resort properties, and infrastructure improvements supporting the growing community. Contractors serving this market must maintain high-quality standards while managing the logistical challenges of mountain construction. Our financing programs support contractors throughout the region including Heber City, Midway, Kamas, and surrounding communities.