Industries

Working Capital and Merchant Cash Advance for Construction Contractors

Contractors pay for labor and materials weeks or months before draws and progress payments arrive. Apex Funding Services compares bridge funding and merchant cash advance offers from multiple funders with one application, so you can mobilize on a job, make payroll and keep crews working while you wait to get paid. We are a broker, not a lender.

Featured option: working capital through a merchant cash advance

A merchant cash advance provides a lump sum in exchange for a share of future receipts. For contractors it is sized on bank deposits and usually repaid by fixed ACH. It funds fast and works when credit or financials would not support a bank loan, but it is expensive, so it is best for short gaps where you can see the payment coming.

Why owners choose it:

  • Speed: decisions often within 24 to 48 hours, with funding soon after approval

  • Sized on revenue: offers are based mainly on your deposits, not just your credit score

  • Repayment matched to how you get paid: split funding or lockbox for card-heavy businesses, so payments rise and fall with sales, or a fixed ACH payment for businesses paid by check, ACH or invoice

  • Limited paperwork: usually bank statements and a short application, with no real estate collateral. Most funders do ask for a personal guarantee of performance

Common uses:

  • Mobilization costs on a new contract

  • Payroll and materials ahead of a draw

  • Equipment repairs to keep a job on schedule

  • Bonding-related cash requirements

How repayment works: split funding, lockbox or ACH

  • Credit card split funding: your card processor automatically sends an agreed percentage of each day's card batch (the holdback) to the funder before the rest settles to you. Payments rise and fall with sales.

  • Lockbox funding: card receipts are deposited into a controlled account, the funder's share is taken out and the balance is passed to you. Used when your current processor cannot split payments.

  • ACH: a fixed daily or weekly debit from your business bank account.

Fit for construction: ACH. Split funding and lockbox depend on daily card sales, which most contractors do not have, so advances for contractors are typically repaid by fixed daily or weekly ACH. Make sure the payment fits your draw schedule before you sign.

Bridge funding

Bridge funding is short-term capital that covers the gap until money you are expecting arrives, such as a customer payment, a loan closing or your busy season. It is typically structured as a short-term advance or loan and repaid when the expected cash comes in. Common bridge situations:

  • Covering costs between progress payments or draws

  • Waiting on retainage release at the end of a job

  • Bridging until a general contractor or public agency pays on net 30 to net 90

  • Bridging until an equipment loan or bank line closes

All your options at a glance

We are not tied to one product. Here is how the main options compare for construction contractors:

  • Merchant cash advance (working capital): fastest and easiest to qualify for, and usually the most expensive. Best for short-term needs with a clear payback.

  • Revenue-based financing: similar to an advance, repaid as a percentage of revenue, sometimes at a lower cost for stronger businesses.

  • Short-term working capital loan: a fixed amount with fixed daily or weekly payments over 6 to 24 months.

  • Invoice factoring and AR lines: a strong fit for commercial and government work and usually cheaper than an advance. Retainage and pay-when-paid clauses can limit what a factor will buy.

  • Revolving line of credit: draw at the start of a job and repay when the draw clears.

  • Asset-based lending: for established contractors with significant receivables and owned equipment.

  • Equipment financing: for excavators, skid steers, trucks and trailers.

Traditional alternatives

If your business has the history and credit for it, traditional financing is usually the cheapest money available:

  • SBA 7(a) loans: up to $5 million for working capital, equipment, expansion or buying a business, with terms up to 10 years for working capital and equipment

  • SBA 504 loans: long-term, fixed-rate financing for real estate and major equipment

  • Bank term loans: a lump sum repaid monthly over several years

  • Bank lines of credit: draw and repay as needed, paying interest only on what you use

  • Bank equipment loans: the equipment itself secures the loan

These cost less, but they take longer, often 30 to 90 days, and usually require two or more years in business, good personal credit, tax returns, financial statements and sometimes collateral. If you qualify, we will tell you, and we can refer you to SBA and bank lenders. A common approach is to use a merchant cash advance or bridge funding now and refinance into bank or SBA financing once it closes.

For construction contractors: Banks will look at your work-in-progress schedule, bonding capacity and financial statements. A bank line of credit sized to your backlog is the lowest-cost way to fund the gap between draws.

Credit card processing

Most construction revenue arrives by check or ACH, but accepting cards from commercial customers can speed up payment. We can set up B2B card acceptance with Level 2 and Level 3 data, which can lower processing costs on corporate and purchasing cards, plus online invoice payments.

Processing is provided through our processing partners. Send a recent processing statement and we will show you your effective rate and fees, with no obligation to switch.

Before you sign

Speed costs money. A merchant cash advance is a purchase of future receivables, not a loan, and it usually costs more than bank financing. Before you accept any offer, we walk you through:

  • The amount you receive and the total payback

  • The factor rate, holdback percentage or daily and weekly payment

  • How reconciliation works if your sales drop

  • Fees deducted at funding

  • How a new advance fits with any advance you already have. Stacking too many positions is the fastest way into a cash flow crisis, and we will tell you if it is a bad idea

Approval, amounts, rates and terms are set by the funder. Submitting a request does not guarantee approval.

What funders look at

  • Bank deposits and revenue trends

  • Who you bill and how reliably they pay

  • Accounts receivable aging and work in progress

  • Licensing, bonding, existing debt and tax liens

Documents to have ready

  • Last 3 to 6 months of business bank statements

  • Signed contracts and open invoices

  • Accounts receivable aging report

  • Owner ID and a voided business check

Ready to see what you qualify for? Start your application or call (516) 474-3776. One application, multiple funders, no obligation to accept.