Contractor materials
On a commercial job the supplier wants paid long before the general contractor or owner pays you. Here is how to map the gap, stress-test it, and decide if funding fits.
✓ Checking what you qualify for does not affect your credit score.
Updated October 13, 2026 · Merchant Fund Express
Commercial subcontractors and contractors (electrical, mechanical, concrete, roofing, flooring) who buy materials up front on a signed commercial contract and get paid on draws. This is not for residential remodeling: we do not promise funding for residential remodel work.
Construction also carries its own rules on our revenue-based tier: $500,000+ in monthly revenue, 5 years in business, 10+ deposits a month and a commercial business location. Smaller contractors can still read against our first tier (3+ years, 650+ FICO, $25,000 a month). The full sheet is on funding requirements.
A commercial electrical sub signs a $380,000 tenant fit-out. The contract pays a 10% mobilization deposit, then monthly progress draws net 30 after approval, with 10% retainage held to closeout. Switchgear and fixtures are ordered in week one.
| Date | Event | In | Out |
|---|---|---|---|
| Mar 2 | Contract signed; deposit invoiced | ||
| Mar 9 | Deposit received | +$38,000 | |
| Mar 10 | Supplier: gear and fixtures (50% down) | −$64,000 | |
| Mar 6 to Apr 3 | Payroll, 4 weeks | −$58,000 | |
| Apr 10 | Supplier balance on delivery | −$64,000 | |
| Apr 30 | Draw 1 approved ($96,000 less 10% retainage) | ||
| May 30 | Draw 1 paid (net 30) | +$86,400 |
By April 10 this job has put $186,000 out and taken $38,000 in. The gap of about $148,000 closes on May 30 when the first draw pays, and only partly. Retainage of $9,600 waits until closeout.
All figures in worked examples are illustrations of the arithmetic, not offers or quotes. Real terms depend on your file and the funder.
Run the same schedule with three things going wrong, one at a time:
| What goes wrong | Effect | What it means for a payment |
|---|---|---|
| Draw approval slips 2 weeks | Gap lasts to mid-June | Payment must be carried 2 more weeks from other jobs |
| Owner disputes 15% of Draw 1 | Draw pays about $73,400 | About $13,000 less to repay with |
| Gear price rises 8% before order | Supplier total $138,200 | Gap grows by about $10,000 |
If the funding payment only works when every draw lands on time, the request is too large or the schedule is too fast. Ask for less, or pick a product whose payment is lighter while the job is in the gap.
Then check what you qualify for; checking does not affect your credit score. More on construction products is on the construction funding page.
Yes, for commercial work that fits the published construction rules. The funder reads your bank deposits across all jobs, plus the contract and supplier invoice for this one.
We do not promise funding for residential remodel work. Commercial contractors are reviewed against the construction rules on our requirements page.
Retainage holds back part of every draw, often 5% to 10%, until closeout. Leave it out of the money you plan to repay with, because it arrives months later.
No. Factoring needs an approved invoice. Before the first draw, a line of credit or working capital is the fit.
Plan for it. Run the schedule with the first draw two weeks late. If the payment cannot be carried from other jobs for those two weeks, reduce the amount.
Same-day decision. Applying takes a few minutes and will not affect your credit score.
