Merchant Cash Advances » Construction Business Advance

Construction Business Funding

Construction business owner wearing hard hat and safety vest stands on scaffolding at worksite.

By Richard Wilson

Last Updated on

Estimated read time: 7 minutes

If you operate a construction business and need funding to upgrade construction equipment, enhance specialized subcontractor services, or need cash to help pay for day to day operations, MCashAdvance construction business advances are the swift solution you’ve been searching for.

We offer construction business advances ranging from $5,000 to $900,000 to help grow your construction enterprise. We fund all types of construction businesses, including general contractors, specialized subcontractors, and renovation services.

Securing financing from banks for construction businesses can be a lengthy and challenging process, often taking weeks or even months to obtain, with strict approval requirements, extensive paperwork, and a preference for businesses with perfect credit.

An advance from MCashAdvance for construction companies offers simpler approval, no paperwork or collateral, the possibility of receiving funds within 24 hours or up to 3 days, and accepts poor credit scores with no hard credit check that won’t impact your credit score upon application.

Get a Construction Company Loan Alternative Now

MCA Feature Offer Details
MCA Amounts: $5,000 – $900,000
Factor Rate: 1.1 – 1.5
Holdback 10 – 25%
Repay In: 3 – 18 months
Funding Time: 1 – 3 days

Applying is easy, free, and won’t impact your credit score.

Get the construction company financing you need today.

What is a Construction Business Advance?

A construction business advance is a type of merchant cash advance (MCA) created for construction businesses, including general contractors, specialized subcontractors, and renovation services.

Your construction business sells a portion of its revenue to MCashAdvance in exchange for an upfront lump sum of funds called a cash advance.

In exchange, we will deduct a small percentage of your daily sales revenue until the advance is fully repaid.

Construction Business Financing for Any Purpose

Here are 13 common ways a cash advance can be utilized in your Construction Business:

  1. Advanced Construction Machinery Purchase: Allocate funds to buy state-of-the-art construction equipment, like high-efficiency cranes, diggers, and automated surveying tools, to enhance operational efficiency.
  2. Green Building Initiatives: Invest in eco-friendly construction practices and materials, appealing to the growing market for sustainable building projects.
  3. Specialized Software for Project Management: Use the funds to acquire or upgrade to advanced project management software, improving scheduling, budget tracking, and client communication.
  4. Workforce Skill Enhancement Programs: Invest in training and certification programs for your workers in specialized areas like green building, safety standards, or advanced carpentry techniques.
  5. Construction Safety Equipment Upgrades: Use the funds to purchase the latest in safety gear, like smart helmets and enhanced harness systems, to ensure worker safety and compliance with regulations.
  6. On-site Technology Integration: Implement cutting-edge technology on construction sites, such as drones for aerial surveys or AR for visualizing construction plans.
  7. Bid and Contract Acquisition Funds: Use the advance for the upfront costs associated with bidding for larger or more lucrative construction projects.
  8. Energy-Efficient Office and Facility Upgrades: Invest in making your office and storage facilities more energy-efficient with better insulation, solar panels, and energy management systems.
  9. Construction Vehicle Fleet Expansion or Upgrade: Use the funds to expand or upgrade your fleet of construction vehicles, improving your ability to handle larger or more diverse projects.
  10. Community Engagement and CSR Projects: Allocate funds for community engagement or corporate social responsibility projects, building your brand’s reputation and goodwill in the community.
  11. Specialized Construction Service Development: Use the funds to develop niche construction services, such as historic restoration, eco-friendly retrofitting, or smart home installations.
  12. Construction Waste Management Solutions: Invest in innovative waste management and recycling solutions to reduce the environmental impact of construction projects.
  13. Construction Business Operating Costs: Use the advance to cover essential operating costs specific to construction businesses, such as project permit fees, site rental costs, or temporary office setups at construction sites.

Building Contractor Business Advance Example

Let’s say you need a $19,000 construction business cash advance to purchase a mobile aerial work platform for your building contracting business. If you are approved for $19,000 and receive a funding offer with a factor rate of 1.15 and a holdback percentage of 15% of daily credit card sales, your total repayment amount will be $21,850 (Total Repaid Amount).

Advance Amount$19,000
Factor Rate1.15
Avg Monthly Credit Card Sales$10,000
Holdback Percentage15%
Daily Credit Card Sales$333.33 per day (approx.)
Daily Payment Amount$50 per day (approx.)
Repayment Term (in days)Approximately 380 days
Repayment Term (in months)Approximately 12.67 months
Total Repaid$21,850 (Total Repaid Amount)

Construction Contractor Funding Eligibility

To be eligible for funding from MCashAdvance you must meet these 5 criteria:

  1. Your construction contracting business must have been operational for at least 6 months.
  2. Your construction company should be generating a minimum of $100,000 per year in revenue.
  3. As the construction contractor, your personal FICO score needs to be 550 or higher.
  4. Your construction firm must utilize a business checking account.
  5. You, as the construction business owner, must be over 18 years of age and a U.S. citizen.

How to Get a Construction Company Advance from MCashAdvance

To get an advance for your construction business from MCashAdvance, follow these 5 steps:

Step 1: Begin Online Application: Click Apply for an MCA to begin.

Step 2: Fill in Your Details: Provide information about your construction company and some personal details as the owner of the company.

Step 3: Submit Bank Statements: Upload the last three months’ bank statements of your construction company.

Step 4: Await Review Process: One of our underwriters will review your cash advance application to decide on funding.

Step 5: Receive Offer and Funding: Once you get a funding offer, review it. If it suits your business needs, accept it, sign the MCA agreement and the funds will be deposited into your business account

Get a Construction Company Business Advance Now

or learn more about merchant cash advance loans

Construction Company Funding FAQs

Can construction businesses get an SBA loan?

Construction businesses can potentially qualify for SBA loans, with options such as the SBA 7(a) Loan, SBA 504 Loan, and SBA Express Loan being available to provide financial support tailored to their specific business needs.

Can construction businesses get invoice financing loans?

Construction businesses often engage in substantial B2B transactions and may issue invoices for their services, making them potential candidates for invoice financing.

Do banks lend to construction businesses?

Banks typically demand that construction companies have at least two years in operation, a FICO credit score of 680 or higher, three years of cash flow records, and a well-structured business plan outlining fund usage. Meeting these criteria increases the likelihood of banks approving a loan for your construction business. If you can’t meet these standards, alternative lenders like MCashAdvance may offer more accessible eligibility criteria for obtaining financial support for your construction business.

How does construction equipment financing work?

Construction businesses can invest in equipment like heavy machinery and use the heavy machinery as collateral to secure financing. At MCashAdvance, you can obtain heavy machinery using our advances without having to use the equipment as collateral.

Can construction businesses get business lines of credit?

Yes, construction businesses can secure a business line of credit when they meet criteria tailored to the construction industry. Qualifications often encompass having a FICO credit score of 660 or higher, a minimum of one year in the construction business, and maintaining monthly revenue exceeding $5,000 as a construction company.

Why do construction companies often choose MCAs?

MCAs provide quick funding solutions, ideal for construction companies with irregular income or new ventures, bypassing stringent credit and extensive paperwork requirements of traditional loans.

What are the challenges in securing funding for the construction industry?

Securing funding in the construction industry is challenging due to the unpredictable nature of the work and reliance on project-based revenue. This variability makes it difficult for new or inconsistently earning businesses to meet the stringent criteria of traditional lenders.

How do merchant cash advances differ from invoice factoring for construction businesses?

Merchant Cash Advances (MCAs) differ from invoice factoring in that MCAs provide upfront cash based on future credit card sales projections, whereas invoice factoring involves selling outstanding invoices at a discount for immediate funding. This distinction makes MCAs more focused on future revenue, while invoice factoring deals with current receivables.

What are some alternatives to MCAs for your construction company?

Your construction company can explore alternatives like business lines of credit, SBA loans, eligible bank loans, and equipment financing, which typically have lower interest rates and more favorable terms. Additionally, crowdfunding, peer-to-peer lending, or venture capital might be suitable depending on your business’s specific needs and eligibility.

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