Roofing Merchant Cash Advance & Business Funding
Merchant cash advance for roofing contractors.
Roofing contractors can get a merchant cash advance to buy materials and cover crews between jobs. Funders read deposits over several months, because a roofer's payments come in large, uneven checks, including insurance claim checks. Winter is the slow stretch in national data, and payroll is lowest in the first quarter.
How do funders read roofing contractors?
Funders look at signed contracts, the gap between spending and getting paid, and how much comes from insurance work. They often drop the single largest deposit when they average. See also construction.
How does money come in for roofing contractors?
Homeowners pay by check or ACH, sometimes through a financing company. Storm and insurance jobs are paid by claim checks, which can be made out to the homeowner and the mortgage company too and take time to clear. Commercial jobs may hold back retainage until the end.
Which months are slowest for roofing contractors?
This table shows how many people private roofing contractors (NAICS 23816) businesses employed each month, as an index where the year's average is 100. It comes from the Bureau of Labor Statistics Quarterly Census of Employment and Wages, the most recent full year available. Staffing is a stand-in for how busy a business is. Deposits can move more or less than headcount, so read it as the shape of the year, not your numbers.
| Month | Staffing index (average = 100) | |
|---|---|---|
| January | 95 | |
| February | 95 | lowest |
| March | 98 | |
| April | 101 | |
| May | 102 | |
| June | 104 | |
| July | 104 | highest |
| August | 103 | |
| September | 102 | |
| October | 101 | |
| November | 99 | |
| December | 96 |
The low point is February at 94.6 and the high point is July at 103.7, a swing of 9.1 points. The first-quarter payroll index is the lowest of any trade here.
| Quarter | Total payroll index (average = 100) |
|---|---|
| Quarter 1 | 87 |
| Quarter 2 | 100 |
| Quarter 3 | 104 |
| Quarter 4 | 110 |
Payroll by quarter can rise at year end for reasons like bonuses and overtime, not only more work.
What do roofing contractors use merchant cash advances for?
- Materials for a large job before the first payment.
- Crew payroll between draws.
- A truck, trailer or lift.
- Storm-season surge staffing.
- Insurance and licensing.
What does an advance payment look like in a slow month?
Say a business like yours deposits $150,000 in an average month, and a funder sets a fixed payment of $15,000 a month, 10% of that average. If deposits follow the staffing curve above, here's what the same payment takes in the slowest and busiest months:
| Deposits | Fixed payment | Share of deposits | |
|---|---|---|---|
| Average month | $150,000 | $15,000 | 10.0% |
| February, the slowest | $141,900 | $15,000 | 10.6% |
| July, the busiest | $155,600 | $15,000 | 9.6% |
The payment doesn't change, but in February it takes 10.6% of deposits instead of 10%. Ask the funder to size the payment on the slow months, or ask how reconciliation works before the slow season starts.
Which funding options fit roofing contractors?
Each page runs one option against this industry's slow months.
Same-day merchant cash advance for roofing contractors
Money the same business day for an urgent cost, with the fixed daily debit measured against February.
Second position MCA for roofing contractors
What a second advance adds on top of the first, and what both payments take from deposits in February.
MCA consolidation for roofing contractors
One payment in place of two, with the share of deposits before and after in February.
Revenue-based financing for roofing contractors
A remittance that moves with revenue, so February sends less, and the months to reach the repayment cap.
Business line of credit for roofing contractors
A draw sized for February, repaid in thirds, with the interest on the balance worked out.
Run a business like this?
Tell us your slow months up front and we'll look for funders that size for them. Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.