The short answer
Who this fits, and who it does not
The best fit is a commercial contractor or subcontractor with a few months of steady deposits and a clear reason for the money: a materials order for a signed job, a payroll week that lands before a draw, or a machine the crew needs now.
- Good fit: commercial electrical, mechanical, plumbing, concrete, steel, roofing on commercial buildings, site work, and specialty trades billing general contractors or public agencies.
- Harder fit: residential remodeling and new residential construction. Many funders restrict these, so expect fewer options and do not count on approval.
- Not a fit yet: a company with no deposits in its own business account, or one whose only plan is to cover losses on a job that is already underwater.
How the money works on a job
Contractors usually choose between three tools, and the right one depends on what the cash is for.
- Working capital or a merchant cash advance: a lump sum repaid daily or weekly from deposits. Good for materials and payroll that come before a draw. MFE's planning guideline for an advance commonly starts near $7,500 a month in revenue and 3+ months in business.
- Invoice factoring: you sell real, undisputed invoices owed by a general contractor or a government customer, usually on net 30 to 90 terms, and get most of the value now.
- Equipment financing: a lift, skid steer or trailer is paid over a term matched to its useful life, never more than 60 months at MFE. A vendor quote or invoice is needed, and a down payment may be asked.
You can compare all three on the Merchant Fund Express construction page.
Check what your business qualifies for
Merchant Fund Express reviews construction business funding requests from $5,000 to $5,000,000. Scores from 500 are considered, and same-day decisions are common on complete files.
Check funding options with Merchant Fund ExpressIllustrative example: materials before a draw
Assumptions: a commercial drywall subcontractor deposits about $60,000 a month. A $40,000 materials order is due now, and the next progress payment is about six weeks away. The owner takes a $40,000 advance with an assumed factor rate of 1.32, an assumed 3% origination fee, and 32 weekly payments.
| Line item | Amount |
|---|---|
| Advance amount | $40,000 |
| Origination fee (3%) | $1,200 |
| Net cash received | $38,800 |
| Total repayment (40,000 x 1.32) | $52,800 |
| Weekly payment (52,800 / 32) | $1,650 |
| Total cost of the money | $14,000 including the fee |
These figures are illustrations, not offers. Real pricing, terms and amounts depend on the full file Merchant Fund Express reviews.
The real test: does the job margin on that materials order exceed $14,000 after labor? If the job only nets $9,000, the advance turns a profitable job into a loss.
What to prepare
- Three to four months of business bank statements.
- A government ID and a voided business check.
- A short application.
- For factoring: the invoices, the contract, and proof the work was accepted.
- For equipment: the vendor quote or invoice.
- For larger requests: financial statements, tax returns, and sometimes a work-in-progress schedule.
A one-page list of active jobs, contract values and expected draw dates helps a reviewer see that deposits are coming, not just hoped for.
Funding brings customers. Is your website ready for them?
General contractors and property managers check a sub's website before they add it to a bid list, so a current project gallery and license details matter once you can take on bigger jobs. Cheap Cheap Websites builds professional contractor sites from $399, and Website Care at $30/month keeps the gallery, hosting and backups current.
Retainage and slow pay change the math
Retainage holds back part of every draw until the project closes out, and that can be months. If your plan to repay depends on retainage, build the schedule around the draws you can count on and treat retainage as a bonus. Slow-paying general contractors are a reason to look at factoring rather than an advance, because factoring is repaid when the customer pays, not from your daily deposits.
When to wait or pick something else
- If you already carry one or more advances, read construction MCA refinancing before adding another. Several existing positions usually point to a refinance.
- If a single large machine is the need, equipment financing spreads the cost over its working life instead of squeezing it into months.
- If the draw is only ten days away and a supplier will extend terms, supplier credit is cheaper than any advance.
- If the job is residential, expect restrictions and plan for slower or smaller options.
Related funding guides
Cheap Cheap Websites builds websites. It does not lend or make funding decisions. Funding is offered by our funding partner, Merchant Fund Express, and every request is subject to its review and approval. Figures on this page are illustrations, not offers. Updated October 15, 2026.