Construction contractors spend heavily before they ever see a draw. Materials, equipment rentals, permits and crew wages hit the books weeks before the general contractor or property owner releases funds, and retainage can hold back a slice of every invoice until the job closes. General contractors, framers, roofers, electricians, concrete crews and remodelers use a merchant cash advance to bid on bigger jobs and keep crews working between draws.
Need merchant cash advance funding of $25K to $5M for your construction business?
How Construction Companies Use a Merchant Cash Advance
Buying lumber, steel, concrete and roofing materials before prices move
Covering payroll while waiting on progress draws or retainage
Renting or purchasing excavators, lifts and skid steers for a new job
Paying for bonding, licensing and insurance requirements on larger contracts
Mobilizing crews for a project in a new county or state
Handling cost overruns and change orders without stalling the site
Cash Flow in the Construction Business
Construction cash flow is lumpy. A contractor can have a strong backlog and still struggle to make payroll because the draw schedule does not line up with the bills. A merchant cash advance gives you capital based on your future revenue, so you can keep the job moving. Funders review your bank deposits to see the size and rhythm of your draws, and a busy season with several active jobs usually tells a strong story. Weather delays and winter slowdowns are normal in the trade, and funders who specialize in construction understand them.
How a Merchant Cash Advance Works
A merchant cash advance is a purchase of a portion of your future receivables. A funder provides a lump sum, typically between $25,000 and $5,000,000, and collects an agreed share of your revenue over time, either as a percentage of card sales or as a fixed daily or weekly remittance. Because the funder is buying future revenue, reviews focus on how your business performs, not only on your credit history. Every offer, including the total amount to be remitted, comes from the funder and is spelled out in the agreement before you sign.
A Typical Scenario
Think of a commercial concrete sub that wins a parking garage pour worth several times its usual job. Ready-mix suppliers want to be paid on delivery, the pump truck rental is due weekly, and the first draw is six weeks out with ten percent retainage held back. Working capital lets the crew mobilize on schedule and protects the relationship with the general contractor.
What Funders Look At
Funders generally look at bank statements, time in business, contractor licensing, and the mix of residential and commercial work. Some ask about your backlog or signed contracts. Subcontractors with a steady relationship with one or two general contractors can qualify, as long as deposits are regular.
Our Process in 3 Steps
Apply online. Complete our short Funding Application and attach recent business bank statements.
Compare offers. We present your construction business to funders in our network and walk you through the offers that come back.
Get funded. Once you accept an offer and the funder approves, funding can arrive in as little as 24–48 hours, depending on the funder.
Why Forward Funders
Forward Funders LLC is a broker, not a direct funder. We shop your file to multiple funders so you can compare options side by side instead of applying one at a time. Our team is based in Staten Island, New York, and works with construction owners across the country. Call (718) 619-9867 or visit our Apply page to get started.
Frequently Asked Questions
Can subcontractors apply?
Yes. Subcontractors with consistent deposits are reviewed regularly. Concentration with one general contractor is common and does not automatically rule you out.
Will retainage affect my application?
Retainage can make cash tight, which is often why contractors apply. Funders focus on actual deposits, so steady draws help.
Can I use the funds to bid larger jobs?
Yes. Many contractors use working capital to cover mobilization, materials and bonding on bigger projects.
Do I need equipment as collateral?
A merchant cash advance is based on future receivables, not equipment. Each funder sets its own terms and requirements.
What about winter slowdowns?
Funders that work with construction expect seasonal dips. Showing your yearly pattern helps them understand your business.
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Forward Funders LLC is a broker, not a funder. Merchant cash advances are purchases of future receivables; approval is not guaranteed and terms come from the funder.
Forward Funders LLC · 6231 Amboy Rd., Staten Island, NY · (718) 619-9867