Larkwood Lenders sends what a crew describes, by phone or through the form, on to funding partners; any offer and its terms come from them.
Four invented crew cases: a painting crew's payroll before a progress payment, sprayers with a towable lift and a trailer on one equipment loan, a framing crew's lumber orders on a credit line, and a used skid steer priced over three terms. The crew counts are Obion County, TN numbers (County Business Patterns 2023) and one ZIP 38261 number; every dollar case is invented.
At a glance
- Construction employers, Obion County, TN
45 establishments (CBP 2023)
- Specialty trade contractors, Obion County, TN
28 establishments (CBP 2023)
- Construction payroll, Obion County, TN
$28.6 million (CBP 2023)
- Construction employers with a ZIP 38261 address
30 (ZBP 2023)
What a Union City, TN Contractor Separates Before Financing: the Machine, the Payroll Gap and the Supply Bill
Obion County, TN had 45 construction establishments with employees in 2023, according to County Business Patterns: 415 paid employees and $28.6 million in annual payroll. Crews with fewer than five employees were 24 of the 45, or 53.3%. Specialty trade contractors made up 28 of the 45 (16 of those under five employees), 7 of them building finishing contractors, the code for painters, drywall and flooring crews. Construction of buildings accounted for 10, and heavy and civil engineering construction for the other 7 (our arithmetic: 45 - 28 - 10).
A separate file, the 2023 ZIP Code Business Patterns, puts 30 construction employers at ZIP 38261 addresses.
The 2024 Nonemployer Statistics count 264 construction businesses with no paid employees in the county, a separate group from the employer figures.
A crew's costs split three ways before any financing talk. A machine or trailer that works for years fits equipment financing. Wages that come due while a customer's payment is still in process fit a working capital loan. Material bought job by job fits a line of credit that is paid down when each job pays. Building construction loans and property purchases are outside this site.
Financing for Contractors When Payroll Comes Before the Progress Payment: an Obion County, TN Painting Crew
In this invented example, a painting crew runs a weekly payroll of $5,400 and bills a general contractor monthly; the progress payment arrives 35 days after the bill. A 35-day wait holds five weekly paydays, $27,000 in wages.
An invented $16,000 working capital loan at 13.15% over 9 months carries a payment of $1,876.60. The nine payments come to $16,889.40; $889.40 of that is interest.
For a gap like this, a partner may ask for the contract with the general contractor, the billing calendar, the last few progress payments as they show in the bank statements, and the payroll register for the same weeks. Those show that the wait is a timing matter and not a collection problem.
The invented loan carries $16,000 of that $27,000 for one wait, with the rest from the crew's own account. If every job pays on the same delay, the gap comes back each month, and a credit line that is drawn and paid down per job may fit better than a second loan. A flooring installer's payroll and tile gap, sized against a credit line, is in the contractor financing article.
Airless Sprayers, a Towable Lift and a Cargo Trailer on One Loan: Financing for Contractors in Union City, TN
In this invented example, a drywall and painting crew prices two airless sprayers at $3,900 each, a towable boom lift at $21,600 and an enclosed cargo trailer at $6,450: $35,850 in total. With $3,585 down, $32,265 is financed at 9.65% over 60 months, a payment of $679.99. Sixty payments total $40,799.40, of which $8,534.40 is interest.
All three items can sit on one note when one dealer or one invoice lists them, and the partner may file a lien on each. If the lift comes from a different seller than the sprayers, a partner may want separate paperwork for each purchase.
A towable lift that is rented out between the crew's own jobs is still the crew's equipment; any rental income can be shown in the bank statements the partner may review.
Financing for Contractors Through a Credit Line: Lumber and Hardware Orders at a Union City, TN Framing Crew
A framing crew buys a lumber and hardware package for each house it frames and is paid by the builder after the frame is inspected and billed. A line of credit matches that pattern: draw for the package, pay it down when the builder pays.
In this invented example, the line has a $30,000 limit at 12.85%. A $12,750 lumber package and $2,300 of hardware stay drawn for 40 days until the builder's payment clears: interest of $179.55 and $32.39, $211.94 together.
Once the draw is paid down, the limit is available for the next house. A partner may set the limit from the crew's deposit history and may ask for the builder contracts behind the larger draws.
Fixed Payments for a Grading Contractor's Used Skid Steer: a Financing for Contractors Example in Obion County, TN
A grading contractor that adds a used skid steer can compare terms before choosing one. A machine bought used may be offered a shorter term than a new one, so the table stops at 60 months.
| Term | Monthly payment | Total of payments | Interest |
|---|---|---|---|
| 36 months | $1,278.52 | $46,026.72 | $6,026.72 |
| 48 months | $1,002.06 | $48,098.88 | $8,098.88 |
| 60 months | $837.15 | $50,229.00 | $10,229.00 |
In this invented example, the machine costs $46,900 with $6,900 down. The 60-month schedule lowers the payment by $441.37 a month and adds $4,202.28 of interest over the 36-month one.
Other Union City, TN trades are on the industries overview, and ZIP 38261 figures are on the Union City, TN page.
By Larkwood Lenders · Updated
