Contractor financing covers equipment, materials and payroll for builders and specialty trades, usually through equipment financing, lines of credit and working capital. Silvershore Funding Group, a small-business funding broker in Flagstaff, Arizona, explains which fits each need and connects Coconino County contractors with lending partners, who make credit decisions and set rates and terms.
| Construction employers | 421 in Coconino County (U.S. Census Bureau, County Business Patterns 2023) |
|---|---|
| Share with fewer than 5 employees | 61.8% (same source) |
| Specialty trade contractors | 256 employer establishments (same source) |
| Contractors with no employees | 879 (U.S. Census Bureau, Nonemployer Statistics 2024) |
| Options that often fit | Equipment financing, line of credit, working capital |
| Who decides | Lending partners, not Silvershore Funding Group |
Coconino County construction by the numbers
| Measure | Construction (all) | Building construction | Specialty trades |
|---|---|---|---|
| Employer establishments, 2023 | 421 | 150 | 256 |
| Paid employees, March 2023 | 3,035 | 757 | 1,985 |
| Annual payroll, 2023 | $180.5 million | $47.9 million | $112.5 million |
| Share with fewer than 5 employees | 61.8% | 72.7% | 56.6% |
| Businesses with no employees, 2024 | 879 | 312 | 555 |
Sources: U.S. Census Bureau, County Business Patterns 2023 (first four rows); U.S. Census Bureau, Nonemployer Statistics 2024 (last row). The two programs use different years and industry definitions, so the rows should not be added together. Specialty trades, such as electrical, plumbing, HVAC, framing and finish work, make up most of the county's construction employers, and most building contractors are very small firms.
Why contractors need financing even when work is steady
A typical job runs on a timeline that works against the contractor's bank balance:
- Mobilize. Materials are ordered and crews scheduled, often before any payment.
- Build. Payroll runs every week or two; suppliers expect payment on their terms.
- Bill. The contractor invoices or submits a draw request when a stage is complete.
- Wait. The owner or general contractor reviews and pays, and some contracts hold back a portion until the end of the job.
A growing contractor feels this most. Each new job adds costs weeks before it adds revenue, so a busy order book can still leave the account short. That gap is a financing question, not a sign of trouble, as long as the jobs are priced to make money.
Matching the need to the funding
| Need | Usually fits | Why |
|---|---|---|
| A loader, excavator, trailer or work van | Equipment financing | The machine or vehicle secures the deal and earns over years |
| Payroll and materials between draws | Line of credit or working capital | Short-term money repaid when the draw lands |
| Materials for many small jobs | Line of credit | Draw for each job, repay as customers pay, reuse the limit |
| A second crew with vehicles and tools | Equipment financing plus a term loan | The assets on one, the start-up costs on the other |
| An offer of a merchant cash advance | Compare first | Not a loan; work out the total remitted against loan options |
A contractor line of credit
A construction line of credit is often the most useful tool for a trade business with many overlapping jobs. You draw for materials or payroll on one job, repay when that customer pays, and the repaid amount is available for the next. Interest runs only on what is drawn. Partners usually want to see a track record of jobs completed and paid, steady deposits, and how much is owed to you on open invoices. Lines are reviewed at renewal, so one that stays fully drawn for months can be reduced.
How to finance construction equipment
Heavy equipment is usually financed on its own, with the machine as collateral. Partners look at what the equipment is, its age and hours if used, the seller, and how the business will keep it working. Titled vehicles such as pickups and work vans usually carry the partner's name as lienholder on the title; other equipment is typically recorded with a UCC financing statement. If you are choosing between buying and leasing, ask how long you expect to run the machine and what the lease says about its end: a lease that ends at fair market value can leave you with an unknown buyout price.
What the permit numbers do and do not show
Coconino County authorized 1,123 new housing units in 2023, 703 in 2024 and 634 in 2025 (U.S. Census Bureau, Building Permits Survey). In 2025, 421 of those units were single-family homes and 183 were in buildings with five or more units. That is a falling count of new residential units over the three years.
It is a partial view. The survey counts new homes only, not remodels, repairs or commercial building, and specialty trades work across all of those. For a contractor weighing new equipment or a second crew, the more useful numbers are your own: backlog, signed contracts, and how quickly customers pay.
Contracts with public agencies
Work for government agencies and public institutions often pays reliably but slowly, and contracts may hold back part of each payment until completion. A partner reviewing a request tied to such a contract will want to see the contract, its payment terms and the billing history. Working capital or a line of credit is the usual fit for the gap between doing the work and being paid for it.
What partners usually review for contractors
- business bank statements and deposit history;
- current contracts, a list of jobs in progress and what remains to be billed;
- invoices owed to you and how long they have been outstanding;
- an equipment list, with any existing liens;
- for equipment requests, the vendor quote;
- business and owner credit.
Local business figures are on our Flagstaff page, and other sectors are under financing by industry.
By Silvershore Funding Group · Updated