Holdback financing for trades.
Cash for work already done, while the statute holds the 10%.
Subtrade Capital Corp. lends against the statutory holdback on completed and paid invoices. The applicable prompt-payment and construction lien statute requires the payor to retain 10% of each invoice until substantial performance and the lien period run.
The work is done. The proper invoice is submitted. The cash is held by statute. We advance in that window.
Not against work in progress. Not against a forecast.
How it helps subcontractors
Your profit is often the portion you cannot touch.
For a sub running mid-teens margins, a 10% holdback can mean most of the profit on a job sits locked until long after payroll and materials on the next one are due.
We put an advance against that receivable so growth is limited by the work you can win, not the withheld 10% hindering your ability to bid.
When you apply
What happens after you apply.
- You apply You start an application and we review it.
- We check fit quickly Bonded project with completed and paid invoices, and clean standing. If it is not a fit, we say so early.
- If it is a fit, we contact you If it is a fit, we will contact you for more information. What we need to underwrite the receivable and the borrower.
- We come back clear Yes, no, or what else we need. Terms are discussed after we see the file.
- If approved and closed, we fund Repayment is expected from holdback release proceeds.
What you get
An advance built around one or more statutory holdbacks.
- Advance against statutory holdback on completed and paid invoices
- Bonded projects only
- Repayment expected from holdback release proceeds. Loan may be required to be supported by additional collateral.
Indicative terms, if we issue them, are discussed after we review your file.
Boundaries
What this product is not.
Not work-in-progress financing
No advances against unbilled work, estimates, or percentage-of-completion projections.
Not factoring
We do not buy your A/R book wholesale.
We do not fund holdbacks on unpaid invoices.
We provide liquidity on the statutory holdback once a subcontractor has received payment from the general contractor.
Not a residential construction lending product.
We do not fund residential construction holdbacks.
Statutory holdback
Built around the applicable holdback regime.
The applicable prompt-payment and construction lien rules establish the statutory holdback and release timeline. Progressive release mechanics can apply on larger contracts.
Subtrade Capital Corp. provides secured advances against statutory holdback receivables on a subject-to-underwriting basis. Bonded projects only. Specific advance amounts, rates, and fees are set in underwriting and definitive documents, not on this website.
Statements about provincial holdback, lien, trust, and prompt-payment regimes are explanatory only and are not legal opinions. Consult your own counsel on PPCLA and related rules.