The Working Capital Problem Every Contractor Knows
Contracting is one of the most cash-flow-intensive businesses there is. You pay for labor, materials, equipment, and insurance before you get paid — sometimes months before. Common pressure points:
- Materials upfront: Large-scale jobs require significant material purchases before work begins, often without deposits from clients.
- Payment lags: General contractors and commercial clients often pay on net-30 to net-60 terms — or slower. Your payroll can't wait that long.
- Opportunity-driven growth: A large commercial bid wins. Now you need to mobilize a crew, purchase materials, and cover overhead before the first invoice goes out.
- Equipment repair: A down excavator, failed compressor, or broken service van stops revenue immediately.
- Seasonality: Exterior trades have intense seasonal patterns. Building up for peak season requires capital that isn't in the account yet.
The contractor catch-22: To grow, you need to take on bigger jobs. Bigger jobs require more working capital upfront. But working capital only comes after the jobs are done and paid. Traditional banks rarely bridge this gap fast enough to matter.
Trades We Work With
Electrical
Materials, crew scaling, equipment
Plumbing
Pipe, fixtures, emergency jobs
HVAC
Units, seasonal ramp-up, fleet
Roofing
Materials, crews, storm response
General Contractors
Multi-trade mobilization capital
Landscaping
Equipment, crews, seasonal prep
Common Uses of Funds
| Use of Funds | Typical Amount | Funding Timeline |
|---|---|---|
| Materials for new job | $10,000 – $100,000 | 24–48 hours |
| Payroll bridge | $15,000 – $60,000 | Same day |
| Equipment repair or replacement | $10,000 – $75,000 | Same day – 24 hours |
| Performance bond or insurance | $10,000 – $50,000 | 24 hours |
| Crew hiring for new contract | $20,000 – $80,000 | 24–48 hours |
| Large commercial mobilization | $50,000 – $500,000 | 2–4 business days |
Common Questions
Yes. Project-based cash flow is very common in contracting, and funders understand the pattern. They'll look at your average monthly deposits over 3–6 months and assess your overall volume and trajectory. A few strong months and a few lighter months is normal and doesn't disqualify you.
Absolutely. There are no restrictions on how you use MCA funds — it goes directly into your business bank account. Materials, payroll, equipment, insurance, bonding — all valid uses.
No. Subcontractors are among the most common applicants. Regular, documented deposits from a stable general contractor relationship is actually a strong signal for underwriters — it shows consistent, predictable revenue.
Most funders we work with go down to 500. A contractor doing $80,000/month in consistent deposits with a 520 credit score will often qualify for a substantial advance. Bank statement history carries far more weight than your score.