Contractor Financing Guide: How to Choose, Size and Compare Funding

Short answer: Start with the problem, not the product. Work out the size of the gap, match it to a line of credit, working capital, bridge financing or a cash advance, and compare offers by total repayment. Contractor Capital Advance funds $25,000 to $5,000,000 based on business deposits, FICO 500+ considered, with funding in as little as 24 hours for qualified businesses.

Reviewed by the Contractor Capital Advance team · Updated October 2026

Match the financing to the problem

The same money behaves differently depending on how it is repaid and when it is available.

Your situation	What usually fits	Why
Payroll and materials due before a draw is paid	Bridge financing or payroll between draws	Covers a known, temporary gap until the payment lands.
Cash needs that come and go through the year	Business line of credit	Draw when you need it, repay, and draw again.
A defined stretch: a new crew, a big mobilization, a slow season	Working capital	One amount sized to the stretch you are covering.
You want repayment that follows your sales	Contractor cash advance	Cash against future deposits, repaid as a share of receipts.

How much should you ask for?

Size the gap, not the ceiling.

Payroll until paid. Weeks of crew payroll before the money you are owed comes in.
Materials and mobilization. What suppliers want up front to start the job.
Insurance, bonding and permits due before work begins.
Equipment repair you cannot put off.
A small cushion for a late payment or a change order.

Add the five lines, and that is your number. Borrowing the maximum you qualify for raises what you repay without solving a bigger problem.

What a lender reads

Contractor financing is mostly read from the business account.

Business deposits. Steady receipts over recent months matter more than one large month.
Existing obligations. Current advances or loans and the payments they take.
Time in business. How long the account has been active.
Credit. FICO 500 and above is considered; approval leans on deposits.
Documents. About three months of business bank statements and basic business information.
The soft pull. The application starts with a soft credit check, so it does not affect your score.

Compare offers by total cost

The headline number is rarely the number that matters.

Ask for	Why it matters
Total repayment in dollars	The only figure that compares two different structures fairly.
Payment amount and frequency	Daily, weekly and monthly payments hit cash flow differently. See daily vs weekly payments.
Term	A longer term lowers each payment but can raise total cost.
Fees	Ask what is deducted before funding and what is added later.
Other obligations	Think through the combined payments before you add one. See one advance vs stacking.

Not sure which structure fits? Read cash advance vs line of credit.

Mistakes contractors make

Most are about timing and size.

Asking for the maximum instead of the size of the gap.
Choosing on the payment alone and ignoring total repayment.
Waiting until payroll is due to start looking.
Adding a second obligation without checking the combined payments.
Using short-term cash for a long-term purchase.
Applying with incomplete bank statements and losing days.

Find financing in your state

Each state has its own page, and larger metros have their own.

Or browse by trade on our financing for contractors page.

Frequently asked questions

What is the best financing for a contractor?

There is no single best product. Match it to the problem: a line of credit for recurring gaps, working capital for a specific stretch, bridge financing while a draw or large invoice is unpaid, and a cash advance when you want cash against future deposits and repayment that follows sales.

How much financing should a contractor ask for?

Add up what the gap actually costs: payroll until you are paid, materials and mobilization, insurance or bonding due now, and a small cushion. Ask for that figure, not the biggest number you might qualify for. Contractor Capital Advance funds $25,000 to $5,000,000 based on business deposits.

What do lenders look at for contractors?

Mostly business bank deposits over recent months, existing advances or loans and their payments, time in business, and the stability of your receipts. We consider owners with a FICO score of 500 or above, and approval is weighted toward deposits.

What do I need to apply?

About three months of business bank statements and basic business information. Tax returns are not required to start. The application starts with a soft credit pull, so applying does not affect your score.

How fast can funding arrive?

Decisions move fast, and funding can arrive in as little as 24 hours for qualified businesses. Timing depends on how complete your statements are and on the product you choose.

How do I compare two contractor financing offers?

Ask for the total repayment in dollars, the payment amount and how often it is taken, the term, and any fees. A smaller payment spread over a longer term can cost more in total, and a daily or weekly payment affects cash flow differently than a monthly one.

Can I get financing while a progress payment is still outstanding?

Yes. Many contractors use working capital or bridge financing to cover payroll, materials and mobilization until a draw or a large invoice is paid.

Is applying a commitment?

No. You can review what you qualify for and decline.

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$25K to $5M, FICO 500+ considered, a soft credit pull that will not affect your score.

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Contractor Financing Guide