# Construction MCA refinance: pay debits on a schedule your draws can carry

URL: https://cheapcheapwebsites.com/business-funding/construction-mca-refinance/
Updated October 15, 2026. Funding offered by Merchant Fund Express (https://merchantfundexpress.com/construction-mca-refinance/); Cheap Cheap Websites builds websites and does not lend.

## The short answer
A construction MCA refinance pays off existing advances with one new advance and one payment, often weekly and on a longer schedule. It fits commercial contractors and subcontractors whose progress billing and net-30 to net-60 terms leave daily debits running ahead of collected pay apps. It usually raises the total repaid, and many funders restrict residential remodeling and new residential construction.

## Why contractors end up stacked
A subcontractor submits a pay application at the end of the month. The general contractor approves it, holds retainage, and pays 30 to 60 days later. Materials, equipment rental and crews are paid long before that. An advance fills the gap on one job. Then the next job starts before the first one pays, and a second advance appears. A third covers a slow-paying owner. Each advance made sense alone. Together, the daily debits can exceed what collected billings support. MFE on construction MCA refinance covers how these files are reviewed.

## Who it fits, and who it does not
Fits: commercial trades like electrical, plumbing, HVAC, concrete, roofing and site work on commercial or public projects, with steady deposits and existing advances paid on time. Harder or restricted: residential remodeling and new residential construction. Many funders restrict them, so an offer cannot be promised. Does not fit: a contractor whose backlog is drying up, or one with disputed pay apps. A refinance spreads payments out. It does not fix a job that will not pay.

## How it works
List every open advance with funder, remaining balance and payment. Send 3 to 4 months of business bank statements, ID, a voided check and the application. Larger requests may need financials or tax returns. Include a short backlog summary: active jobs, contract values, expected pay dates. If approved, the new advance pays off the old positions directly. One payment replaces the stack. If a single position is the issue, see MCA refinance . If you are paid by commercial customers on invoices, also read invoice factoring vs MCA .

## Illustrative example: a commercial electrical subcontractor
Illustrative example. These figures are illustrations to show the arithmetic, not offers. Real pricing, terms and amounts come only from a reviewed application. Assumptions: about $150,000 a month in deposits from progress billing on net-45 terms, 6 years open, credit around 630, three open advances, 22 business days per month. Item Before After refinance Open balances $34,000 + $22,000 + $15,000 = $71,000 Paid off Payment $900 + $650 + $500 = $2,050 per business day $2,153.33 per week for 60 weeks Monthly outflow $2,050 x 22 = $45,100 $2,153.33 x 52 / 12 = $9,331.11 New advance $95,000 at a 1.36 factor = $129,200 Fee $1,900 Net cash received $95,000 minus $71,000 minus $1,900 = $22,100 The trade-off is plain: monthly outflow drops by about $35,769 and $22,100 arrives for materials on the next job. In exchange, the contractor will repay $129,200 instead of the $71,000 left on the old advances. The new advance is about 0.63x of monthly deposits.

## What to prepare
3 to 4 months of business bank statements. Payoff letters for each advance. Backlog list with contract values and expected payment dates. Aging report of open pay apps and retainage held. ID, voided check, application. Financials or tax returns for larger amounts.

## When another option is better
If your next big cost is a machine, equipment financing with a term matched to its life keeps it out of your daily cash. If most of your stress is one slow general contractor, factoring real, undisputed invoices may be cheaper than refinancing everything. If retainage is about to release on a large job, waiting a few weeks may let you pay down a position instead. Industry overview: construction business funding .

## Frequently asked questions
**Can residential remodelers refinance an MCA?** Many funders restrict residential remodeling and new residential construction, so it cannot be promised. Commercial and public work is a more common fit. Describe your job mix honestly so the reviewer can answer quickly.

**Does retainage count toward my revenue?** Retainage is money you have earned but not collected. Reviewers focus on deposits that hit your bank, so list retainage separately in your backlog summary. It shows future cash without inflating current revenue.

**Can a refinance include some new cash?** Yes, if the new amount exceeds the payoffs and your deposits support the payment. The difference after payoffs and fees lands in your account, as in the example above.

**Is it better to refinance or factor my pay apps?** Factoring works on real, undisputed invoices to business or government customers. If your pay apps qualify, factoring addresses the wait directly. A refinance addresses existing advance payments. Some contractors need one, some need both.

## Website for growing businesses
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Apply for funding: https://merchantfundexpress.com/current-application.html?src=ccw-construction-mca-refinance
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