Invoice financing
Advance against progress invoices.
Industry guide
Funding for contractors: bridging the gap between the work and the draw
You front materials and pay the crew for weeks before a draw request or a net-30 invoice turns into cash. Retainage holds back more. This page is about funding your contracting business, not the consumer financing you might offer homeowners.
Where the gap comes from
- Mobilization: permits, deposits on materials, equipment rental before the first draw.
- Progress billing lag: you bill at milestones; approval and payment take 30–60 days.
- Retainage: a percentage of each payment held back until substantial completion, as set in the contract.
- Seasonality: weather-driven slowdowns for exterior trades.
- Equipment failures: a down truck or lift stops revenue immediately.
What fits what
| Need | Usually fits | Usually doesn’t |
|---|---|---|
| Materials and crew on a signed commercial job | Invoice financing against progress invoices; a line of credit | A daily-pay advance sized to the whole job |
| Replacing a truck, lift, or major tool | Equipment financing | Working capital advance (wrong term for the asset) |
| A one-week payroll gap before a draw lands | Short-term working capital advance if a line is not available | Stacking a second advance |
| Bonding or growth into larger projects | Term loan or SBA 7(a) (education) | Anything with daily payments |
Trade-specific notes
- Roofing: storm-driven surges mean big material buys fast; insurance-paid jobs pay slowly. Invoice financing on insurer-backed receivables can work; confirm the provider accepts them.
- HVAC and plumbing: service revenue is steadier than install revenue. Card-heavy service work can qualify for MCA-style products, but a line of credit usually costs less.
- Electrical: commercial subcontracts with long retainage; factoring is common in the trade.
- Landscaping and lawn care: strongly seasonal; match repayment to the season (seasonal financing).
Watch for
- Daily debits during a rain week.
- UCC liens that conflict with your bank line or bonding company.
- Personal guarantees that outlast the job.
What Fast Mula is and isn't. Fast Mula helps you compare business-funding structures and submit one inquiry. Nothing on this site is an offer, approval, guaranteed rate, or guaranteed timeline. Any funding depends on a provider's own review, and terms vary by state.
Common questions
Can I get funding with only a signed contract and no invoices yet?
Contract financing exists but is specialized. More commonly, a line of credit or a short-term advance covers mobilization, then invoice financing takes over once you bill.
Does contractor financing require collateral?
Invoice financing is secured by the invoices, equipment financing by the equipment. Unsecured lines and advances usually rely on a personal guarantee instead.
How fast can a contractor get funded?
Days for advances and some lines; a week or two for invoice financing setup; weeks for term and SBA loans. What determines speed.
Related
Equipment financing
Trucks, lifts, and tools.
Payroll funding
Covering crew pay before you are paid.
HVAC contractors
Installs, shoulder seasons, distributor limits.
Plumbing contractors
Service trucks and GC draw schedules.
Electrical contractors
Switchgear deposits, retainage, bonding.
Roofing contractors
Storm surges and insurance-paid jobs.
Landscaping & lawn care
The March ramp and the winter gap.
Contractor? See what fits your jobs
Tell us about the work, the billing cycle, and the gap.