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Funding · Texas · 2026

Construction funding in Texas — what to expect.

Texas construction contractors — general contractors, sub-trades, and specialty trades — face the classic AR mismatch: pay labor and materials weekly, get paid 60–90 days later. MCAs and invoice factoring fill that gap. We route construction leads to the right product based on AR profile.

Fundnode Editorial6 min read

Typical funding range

$15,000 – $400,000 — that's the band most construction in Texas 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

  • Many MCA funders flag construction as 'cautious' due to project risk; some decline outright
  • Specialty construction funders + invoice factoring are often a better fit
  • 12+ months in business; 24+ months opens better terms
  • AR concentration is a key underwriting factor — heavy single-customer concentration hurts pricing

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 Texas happen in 2–4 hours once docs are complete.

  • Last 3–6 months business bank statements
  • Most recent AR aging report
  • Active contractor licenses
  • Driver's license for the majority owner

The math

A typical construction deal in Texas 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

Is invoice factoring better than an MCA for construction?
Often, yes — particularly for GCs and subs with steady AR. Factoring rates are typically 1–3% of invoice value (annualized 15–40% APR) vs MCA factor rates that work out to 50%+ APR. Factoring also doesn't have daily ACH risk.
Why do MCA funders avoid construction?
Project risk. Construction revenue is lumpy and AR-heavy. A funder with daily ACH needs daily deposits — a contractor billing one client every 30 days is a hard fit for that structure.
Can a Texas roofing contractor get an MCA?
Roofing is one of the more MCA-friendly construction sub-trades because revenue is often paid faster (homeowner pays at completion) and deposit count is higher. Most funders will look. Expect a factor rate at the higher end of normal (1.35–1.45).