Why is invoice factoring better than MCA for NY construction?

Construction AR (especially commercial) is high-quality collateral. Factoring at 1–3% per invoice is dramatically cheaper than MCA at 1.30+ factor over 12 months. Daily ACH from MCA is also a poor match for monthly project billing.

Are NYC commercial GCs treated differently than residential?

Commercial work usually has stronger, more predictable AR — unlocks better factoring terms. Residential GCs face more volatility and often pay higher factor rates if they go the MCA route.

How does NY's prompt-payment law affect funding decisions?

Public-project AR is statutorily required to pay on a faster cycle. Funders factor or advance against NYC and state public-project AR at tighter pricing because the collection risk is lower.

Construction Funding in New York 2026: $15,000

New York construction — NYC commercial trades, Long Island residential GCs, upstate specialty trades, and statewide sub-trades — runs on lumpy cash cycles and tight AR. NY's commercial financing disclosure law applies. Most GCs do better with invoice factoring than MCA.

Typical funding range

$15,000 – $400,000 — that's the band most construction in New York fall into. Deals smaller than $10K are uncommon (the math rarely works for the funder). Deals over $250K typically require stronger profiles or collateral.

What funders look for

Most MCA funders treat construction as 'cautious' due to project risk
Invoice factoring usually beats MCA pricing for GCs and sub-trades with steady AR
NYDFS disclosure law applies to sales-based financing
12+ months operating typical floor; NYC operators often have higher revenue averages

What to bring to the application

The faster you can ship these to a funder, the faster you close. Most underwriting decisions for construction in New York happen in 2–4 hours once docs are complete.

Last 3–6 months business bank statements
Recent AR aging report
Active NY contractor license
Driver's license for the majority owner

The math

A typical construction deal in New York lands at a factor rate between 1.25 and 1.42. On a $50,000 advance at 1.32, you'd repay $66,000 over 9–12 months — about $260–$305/day in ACH. Our factor rate calculator lets you plug in your own numbers.

Frequently asked questions

Why is invoice factoring better than MCA for NY construction?: Construction AR (especially commercial) is high-quality collateral. Factoring at 1–3% per invoice is dramatically cheaper than MCA at 1.30+ factor over 12 months. Daily ACH from MCA is also a poor match for monthly project billing.
Are NYC commercial GCs treated differently than residential?: Commercial work usually has stronger, more predictable AR — unlocks better factoring terms. Residential GCs face more volatility and often pay higher factor rates if they go the MCA route.
How does NY's prompt-payment law affect funding decisions?: Public-project AR is statutorily required to pay on a faster cycle. Funders factor or advance against NYC and state public-project AR at tighter pricing because the collection risk is lower.

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