Texas construction market context
Texas SB 1280 effective 2026 requires provider/broker registration and standardized disclosure (APR-equivalent on every offer). Construction-focused funders had to comply by Q1 2026; most did. The opaque-pricing C-paper construction shops reduced their TX presence — net positive for contractors. Construction has the trickiest cash cycle of any industry MCA funders cover: revenue comes in lumpy progress payments, AR sits 30-90 days, labor and materials need paying weekly. Daily ACH from MCA fits this pattern poorly. Most contractors we route to MCA get a better outcome with factoring against creditworthy general contractors or owners. Project sizes we see most often: $50K-$200K residential GCs (factoring rarely fits, MCA sometimes), $200K-$1M mid-size commercial GCs (factoring usually fits, MCA backup), $1M+ specialty trades (mostly SBA + factoring).
Top funders for Texas contractors
Fora Financial
Wide industry acceptance — actually funds Texas construction (which many generalists decline). $1.5M cap fits mid-size GCs. SB 1280 compliant.
Kalamata Capital
Mid-market ($50K-$500K) specialist with stronger acceptance for construction than generalists. ISO-heavy but accessible direct.
Credibly
SB 1280 compliant; selective on construction but underwrites established files with consistent AR. Multi-product flexibility (MCA + LOC + term).
Forward Financing
B-paper specialist; reconciliation policy that responds to project-payment delays.
Texas cities and construction markets
- Dallas / Fort Worth — Residential and commercial volume is the highest in the state. Mid-size GCs ($200K-$1M revenue) common. Many qualify for SBA Express; MCA fits narrow short-term gaps.
- Houston / Energy Corridor — Energy services subcontractors (drilling, completions, pipeline work). Major oil & gas operator counterparties make AR creditworthy — factoring at 1-1.5% standard.
- Austin — Residential GCs serving the tech boom; high-end remodels and custom builds. AR cycles long (homeowner financing delays), making bridge financing common.
- San Antonio — Mix of military housing, residential, and growing infrastructure work. Smaller funder pool than DFW/Houston; more broker-placed deals.
The funding math, in Texas terms
A Dallas residential GC doing $400K/month in invoiced revenue needs $75K to bridge labor + materials before a major progress payment on a $1.2M custom home project arrives in 35 days. - Invoice factoring against the homeowner's lender invoice: at 2% factoring, $75K of invoiced AR becomes $73.5K of cash immediately. Risk: requires the AR to be invoiced and accepted. - $75K MCA at 1.30 factor over 9 months: $97.5K payback, ~$360/day ACH. Brutal during the 35-day wait when no incoming revenue covers it. - SBA Express loan: $75K at prime + 4.5%, interest-only payments during construction. Cheapest by far but 5-10 day underwriting. - Hybrid: factor next-progress-payment AR + draw on a pre-opened Bluevine LOC. Best fit: SBA Express if you can wait 7-10 days, factoring if AR is invoiced, MCA only if everything else fails.
Other industries we fund in Texas
Not construction? Here's funding qualification context for the other Texas verticals we route most often:
- Trucking funding in Texas — $20,000 – $500,000
- Restaurants funding in Texas — $15,000 – $300,000
- Retail funding in Texas — $10,000 – $250,000
- Professional Services funding in Texas — $15,000 – $400,000
- E-commerce funding in Texas — $10,000 – $500,000
- Healthcare funding in Texas — $25,000 – $500,000
- Manufacturing funding in Texas — $25,000 – $1,000,000
- Auto Repair funding in Texas — $10,000 – $200,000
- HVAC Contractors funding in Texas — $15,000 – $300,000
- Salons and Spas funding in Texas — $10,000 – $200,000
- Daycare and Childcare Centers funding in Texas — $10,000 – $250,000
- Gas Stations and C-Stores funding in Texas — $15,000 – $400,000
- Landscaping funding in Texas — $10,000 – $200,000
- Cleaning Services funding in Texas — $10,000 – $200,000
- Staffing Agencies funding in Texas — $25,000 – $500,000
- Dental Practices funding in Texas — $20,000 – $500,000
- Food Trucks and Mobile Vendors funding in Texas — $10,000 – $150,000
- Bars and Breweries funding in Texas — $15,000 – $300,000
- Gyms and Fitness Studios funding in Texas — $10,000 – $250,000
- Accounting and CPA Firms funding in Texas — $15,000 – $200,000
Related reading for Texas contractors
- Construction funding in Texas — qualification + paperwork
- Best MCA funders for construction 2026
- MCA vs LOC vs term loan
- All MCA funders ranked for 2026
Frequently asked questions
Frequently asked questions
- Does SB 1280 affect my Texas construction MCA offer?
- Yes. Funders licensed to operate in TX in 2026 must register and provide standardized disclosure including APR-equivalent. This makes comparison shopping easier — ask every funder for the APR-equivalent and compare directly. Construction MCAs typically run 50-90% APR; if you're being quoted higher, alternatives exist.
- Why do MCA funders flag construction as 'cautious'?
- Two reasons: revenue is lumpy (long AR cycles, project-based billing) which makes daily ACH brutal during slow weeks, and construction default rates have historically been higher than restaurants or retail. Funders price for this risk — your factor rate as a contractor is typically 0.05-0.10 higher than the same merchant profile in a smoother-revenue industry.
- Should Texas energy services contractors factor or MCA?
- Factor. Energy services AR (against oil & gas operators) is highly creditworthy. Factoring at 1-1.5% per invoice typically beats MCA materially. Specialty energy factors price tighter than generalist invoice factors.
- Can a Texas owner-operator residential contractor with $50K/mo qualify?
- Marginally for MCA. $50K/mo revenue is below most funder minimums; you may qualify at higher factor rates (1.40+). Better fit: SBA Microloan up to $50K (cheaper) or business credit card cash advance for short-term bridges.