Trueleaf Finance, a small-business funding service in Saginaw, Michigan, helps contractors and builders in Saginaw County request lines of credit, equipment financing and working capital from funding partners. This page covers the contractor cash cycle, financing used construction equipment, what partners review, a worked draw example, the county's construction counts and the trade pages under it.
| Builders and trades with payroll, 2023 | 348 (CBP, NAICS 23) |
|---|---|
| Under-5-employee share | 62.1% (CBP 2023) |
| Residential builders with employees, 2023 | 81 (CBP, NAICS 2361) |
| Housing units with permits issued in 2025 | 210 (BPS) |
The County's Builders and Trades, Counted
Saginaw County had 348 construction establishments with paid employees in 2023, and 62.1% had fewer than five employees (County Business Patterns 2023, NAICS 23). Among them were 81 residential builders and remodelers, 22 nonresidential builders and 56 other specialty trade contractors such as site preparation (NAICS 2361, 2362, 2389). Residential builders are especially small: 77.8% had fewer than five employees.
Separately, Nonemployer Statistics counted 1,095 construction businesses with no payroll in 2024 (a different program, so not added to the employer counts), including 303 residential builders and 208 other specialty trade contractors. Builders pulled permits for 210 new housing units in the county in 2025, after 190 in 2023 and 141 in 2024 (Building Permits Survey).
How Contractor Cash Moves
- Materials first: supplier accounts or cash, bought before the first draw.
- Crews weekly: wages and subcontractor payments do not wait for the owner.
- Draws later: paid on inspection or milestone, which can be weeks after the work.
- Retainage: a share of each payment held until the job closes.
- Equipment: bought or rented, and needed before the job that pays for it.
Contractor Needs, Paired With Funding
| Need | Structure | Why it fits |
|---|---|---|
| Materials and wages between draws | Contractor line of credit | Draw per job, repay at each draw |
| Excavators, skid steers, trailers, pickups | Equipment financing | The machine secures it |
| A one-off gap on a large job | Working capital | Short money for a defined gap |
| Shop, yard or a second crew | Term loan | Longer project, level payments |
Construction Company Working Capital and a Contractor Line of Credit
A line of credit can suit contractors whose jobs overlap. Draw for materials on one job, repay when its draw clears, then draw for the next. Partners want to see the job pipeline: a list of contracts with values, completion dates and draw schedules. A clean receivables aging report shows which customers pay on time.
For one large job with a known gap, working capital sized to that gap may be a closer fit than a standing line.
Used Construction Equipment Financing and How to Finance Construction Equipment
A contractor can buy used. Partners consider used construction equipment, with closer attention to hours, age and condition, and may ask for an appraisal on bigger machines. Bring the bill of sale or dealer quote with serial number and hours, photos, and maintenance records. A machine that will be busy on contracted work is easier to explain than one bought on speculation. The equipment financing page weighs owning against leasing.
What Partners Review From Contractors
- Recent bank statements, to see draws and payroll side by side
- A work-in-progress or job list with contract values and schedules
- An accounts receivable aging report, including retainage held
- Tax returns and a year-to-date profit-and-loss statement
- Equipment quotes and a schedule of existing equipment debt
Illustrative Example: Carrying a Job to Its First Draw
Illustrative figures only, not an offer. A Saginaw County remodeler signs a $120,000 job with draws at 30%, 60% and completion. Before the first draw, materials run $22,000 and three weeks of crew wages $15,000. The contractor has $12,000 to put in, so the gap is $25,000, repaid from the first $36,000 draw. Laid out like this, a partner can see where repayment comes from and when.
Retainage and Slow Payers: Planning Around Held Money
On some jobs, depending on the contract, a share of each payment is held back until the work is finished and accepted. That retainage is earned money the contractor cannot spend yet. Add an owner who pays late, and a profitable job can leave the business short for months.
Track retainage separately on the receivables report, with the expected release date for each job. A partner reading a contractor's file may treat retainage differently from ordinary receivables, and a clear schedule shows when it should come in. For a large release that is overdue, a short bridge from working capital can cover the gap, but only if the release date is realistic.
Trades Under Construction: Plumbing and HVAC
Plumbing, heating and air-conditioning contractors have their own cash cycle, with stocked vans, service calls billed on completion and larger installation jobs. The county had 50 such contractors with employees in 2023 (CBP 2023, NAICS 238220). Their page covers van inventory, equipment and service-agreement revenue: plumbing and HVAC contractor funding.
If a project needs a permit or zoning sign-off first, start with the Saginaw, MI zoning and building permits checklist. Countywide Census counts sit on the Saginaw, MI page, and other sectors on the industries hub.
By Trueleaf Finance · Updated
