Construction MCA
Construction MCA serves contractors, subcontractors, and construction-related businesses — accommodating project-based revenue cycles, equipment needs, and labor capital requirements through specialized underwriting that recognizes industry-specific cash flow patterns.
Why This Matters
Construction MCA serves a high-value industry segment with distinct revenue patterns. Construction businesses face project-based capital cycles: bidding requires capital reserves, mobilization requires upfront cash, project execution requires payroll and materials capital, and payment arrives in milestone-based or completion-based settlements. Standard daily-payment MCA structures often don't fit construction cash flow well — many construction MCA programs use weekly payment structures or even custom payment timing tied to expected project receivables. Equipment-heavy balance sheets enable some construction MCA structures to incorporate equipment collateral for risk mitigation.
Frequently Asked Questions
Frequently Asked Questions
Why is MCA underwriting more complex for construction?
Project-based revenue creates lumpy cash flow that doesn't fit standard daily-payment structures cleanly. Underwriters must analyze contract pipelines (committed projects with expected payment dates), assess customer concentration risk (large GC dependencies), and accommodate equipment-heavy balance sheets that affect working capital interpretation.
What construction businesses qualify for MCA?
Established contractors (3+ years operating), subcontractors with diversified customer base, specialty trades with equipment requirements (HVAC, electrical, plumbing), and construction-related services. New construction startups typically don't qualify due to revenue volatility and limited operating history.