Contractor Lines of Credit
Detroit Development's Contractor Line of Credit loans will provide financing for contractors that are related to a specific contract or purchase order.
CRITERIA, LOAN SIZE, AND TERMS
To qualify for a Contractor Line of Credit loan, projects should meet one or more of the following criteria:
Have 1-2 years experience or have completed MSHDA Contractor Assistance Program, or similar program
Have contract or purchase order to perform work
Will use Detroit residents to complete portions of contract
Draws on the line of credit will be used on work completed by the contractor; Contractor's project will be monitored
Contractor lines of credit usually range from $30,000 to $100,000*
Terms lengths are generally 6 to 12 months*
The lines of credit will be generally structured with interest-only payments with principal recovery as the contractor receives payments
*Exceptions may be made to revenue and length of time in business criteria depending upon the specific project and company paying the contractor for the service.
USE OF PROCEEDS
Contractor Lines of Credit may be used for the following:
Finance payroll through the accounts receivable collection period
Cover operating expenses