# Construction and contractor funding cheat sheet

URL: https://cheapcheapwebsites.com/cheat-sheets/construction-contractor-funding/
Updated October 16, 2026. Funding offered by Merchant Fund Express (https://merchantfundexpress.com/industries/); Cheap Cheap Websites builds websites and does not lend.

## The short answer
Contractors usually fund the gap between paying crews and materials and getting paid on progress billing. Invoice factoring fits commercial and government work billed on net terms, working capital and advances fit materials and payroll, and equipment financing fits trucks and machinery. Many funders restrict new residential construction and residential remodeling, so commercial and service work generally has more options.

## At a glance
- Trades covered: General contractors, roofing, concrete, painting, flooring, HVAC, plumbing, electrical, landscaping, solar, pressure washing, junk removal
- Main cash problem: Paying labor and materials before progress payments arrive
- Factoring: Undisputed invoices to business or government customers, usually net 30 to 90
- MCA guideline: Commonly from about $7,500 a month, 3+ months in business
- Working capital: Commonly from about $17,500 a month, 6+ months, 600+ credit
- Equipment: Trucks, lifts, machinery; max 60 months at MFE; vendor quote needed
- Restrictions: Many funders restrict new residential construction and residential remodeling
- Documents: Bank statements, ID, voided check, application; invoices or contracts for factoring

## Before you apply: checklist
- List open contracts with amounts and expected payment dates
- Separate retainage from the amount you can bill now
- Pull 4 months of business bank statements
- Get quotes for any trucks or equipment
- Note whether your work is commercial, government, service or residential
- Check lien waivers and paperwork for each invoice
- List any open advances before applying

## By trade
General contractors and concrete: big material buys and long progress cycles; factoring and working capital. Roofing, painting and flooring: seasonal crews and material deposits; advances or working capital. HVAC, plumbing and electrical: service vans, parts inventory and commercial jobs on net terms; equipment financing and factoring. Landscaping: mowers, trailers and winter slowdowns. Solar: panels and labor ahead of installation payouts. Pressure washing and junk removal: trucks, trailers and equipment upgrades. See construction business funding for more.

## Progress billing and factoring
Progress billing means you earn money as stages finish, but the check often arrives 30 to 90 days later. Factoring turns those approved commercial or government invoices into cash now. Retainage held back until the job closes is usually not part of the advance.

## Illustrative example: factoring a progress invoice
Illustrative example Item Figure Approved progress invoice to a commercial GC, net 45 $80,000 Assumed advance rate (85%) $68,000 paid now Assumed factoring fee (3%) $2,400 Rebate when the GC pays ($80,000 minus $68,000 minus $2,400) $9,600 Total received ($68,000 + $9,600) $77,600 These figures are illustrations, not offers. Real pricing, amounts and terms depend on the full file review.

## Red flags for contractors
Funding a residential remodel book without checking restrictions first. Taking short-term money to buy a truck that could be financed over its life. Stacking advances during a slow season; see construction MCA refinance . Factoring invoices that are disputed or not yet approved.

## How Merchant Fund Express handles this
Merchant Fund Express reviews contractor files for advances, working capital, equipment financing and factoring. The Merchant Fund Express industries page covers how trades are reviewed. Many funders restrict new residential construction and residential remodeling, so expect questions about the type of work. MFE can also review a refinance of existing advances. Start here: apply with Merchant Fund Express .

## Frequently asked questions
**Can roofers and remodelers get funding?** Roofers often can, depending on the work mix. Many funders restrict residential remodeling and new residential construction, so commercial, service and repair work usually has more options. Describe your job mix honestly on the application.

**Is factoring good for contractors?** It fits contractors who bill commercial or government customers on net 30 to 90 terms with approved, undisputed invoices. It is not for jobs paid on the spot by homeowners.

**Can I finance a work truck?** Yes, equipment financing covers trucks, trailers, lifts and machinery. At MFE terms are matched to the equipment's life and never exceed 60 months. A vendor quote or invoice is needed, and a down payment may be asked.

**What about HVAC and plumbing companies?** Service trades are commonly reviewed for working capital, advances and equipment financing for vans and tools. Commercial service contracts billed on net terms can also be factored.

**Does winter slowdown hurt my chances?** Seasonal dips are normal for many trades. Funders look at the full statement history, so showing several months, including busy ones, gives a fair picture.

Apply with Merchant Fund Express: https://merchantfundexpress.com/current-application.html?utm_source=cheat-sheet&utm_campaign=construction-contractor-funding