Business funding for electrical contractors
Electrical contractors buy wire, panels and gear up front, wait on progress billing for larger commercial and new-construction jobs, and still need to run smaller service calls day to day. Material price swings make timing worse: a job priced months ago can cost more to supply than it did when you bid it.
- One application, several lenders
- No credit pull to see your options
- No fee to you, ever
Common funding needs
- Buying panels, wire and gear ahead of a scheduled job
- Covering payroll while a commercial progress bill is outstanding
- Financing bucket trucks, bending equipment or testing gear
- Bridging a material price increase mid-job
- Taking on a larger commercial or industrial contract
- Stocking service vehicles for day-to-day residential calls
What usually fits
Products that usually fit
- Invoice factoring for commercial and industrial billing on net-30 to net-60 terms.
- Line of credit for materials and payroll, reused project to project.
- Equipment financing for bucket trucks, benders and testing equipment.
- Term loan for a planned move into larger commercial or industrial work.
Compare term loans, lines of credit, cash advances and equipment financing side by side →
Illustrative example
A worked example
An electrical contractor has $55,000 billed to a general contractor on 30-day terms. Factoring at an illustrative 90% advance releases about $49,500 within days; at an illustrative 1.8% fee for the period, the fee is $990, with the balance paid once the GC settles.
A material draw of $22,000 on a line of credit at an illustrative 10–20% a year, repaid over 2 months waiting on a progress bill, costs roughly $367–$733.
Illustrative example only, not an offer or a quote. Rates, fees and terms are set by each lender and depend on your business. Fees are not included unless stated.
Underwriting
What lenders look at
- Split between commercial/industrial billing and residential service calls
- Payment history from general contractors and property managers you bill
- Journeyman and master electrician licensing current
- Fleet age and existing vehicle or equipment loans
- Monthly deposits and how project timing affects them
- Owner credit and time running the company
Honestly
Who this is not for
- A contractor with no commercial invoices to factor, only residential service calls paid on the spot
- A price-sensitive fixed-bid job where borrowing costs would erase the margin
- Financing equipment sized for jobs you have not yet won
If borrowing does not make sense, we will say so.
Are you a match?
Lender network minimums
Close but not quite there? Apply anyway and we will tell you honestly what is possible.
*Best available terms from lenders in our network. Every lender sets its own criteria; approval, amount and funding time are decided by the lender and not guaranteed.
| Time in business | 1 year+ |
|---|---|
| Monthly bank deposits | $20,000+ |
| Credit score | 500+ |
| Bank account | Business |
| Fee to you | $0 |
| Credit pull to start | None |
FAQ
Electrical funding questions
Can you factor progress billing on a commercial job, or only a final invoice?
Some factoring companies will advance on approved progress billing, not just a completed final invoice. It depends on how the GC or owner has signed off.
Does factoring work if we're a sub to a general contractor?
Yes, as long as the GC pays reliably. The factoring company looks at the GC's payment history, not just yours.
Can I finance a bucket truck or a conduit bender?
Yes, through equipment financing, and some lenders will do used equipment as well as new.
What if a material price spike happens mid-job?
A line of credit drawn to cover the gap is usually cheaper than a cash advance, but it needs to be set up before the crunch hits. Ask us early.
Guides
Guides for electrical
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Where we work: all US states · all Canadian provinces
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