Business funding for flooring contractors
Flooring contractors often pay suppliers for tile, hardwood or carpet before a job starts, then wait on a builder's draw schedule or a commercial property's payment terms to get paid back. A single large order that does not match up with when the customer pays can tie up cash for an entire crew's next job.
- One application, several lenders
- No credit pull to see your options
- No fee to you, ever
Common funding needs
- Ordering tile, hardwood, LVP or carpet ahead of an install
- Covering crew payroll while a builder draw is outstanding
- Financing floor prep equipment, sanders and installation tools
- Bridging the gap on a new-construction or multi-unit contract
- Stocking commonly used materials to shorten lead times
- Taking on a larger commercial flooring contract
What usually fits
Products that usually fit
- Invoice factoring for builder and commercial contracts billed on terms.
- Line of credit for material orders and payroll between jobs.
- Equipment financing for sanders, prep equipment and trucks.
- Working capital for a fast, lump-sum need tied to a specific order.
Compare term loans, lines of credit, cash advances and equipment financing side by side →
Illustrative example
A worked example
A flooring contractor has $40,000 billed to a builder on 45-day terms after finishing a multi-unit install. Factoring at an illustrative 88% advance releases about $35,200 within days; at an illustrative 2.5% fee for the period, that is $1,000, with the rest paid when the builder settles.
The same gap covered by a line of credit at an illustrative 10–20% a year costs roughly $500–$1,000 for the 45 days.
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 builder/commercial contracts and retail residential jobs
- Payment history from the builders or property managers you bill
- Materials supplier terms and current account balances
- Monthly deposits and crew payroll timing
- Equipment age and any existing loans
- Owner credit and time in business
Honestly
Who this is not for
- A crew doing only small retail jobs paid on completion: factoring needs a billed invoice to advance against
- Ordering a large material lot before the job is actually confirmed
- Borrowing against a builder invoice already disputed over installation quality
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
Flooring funding questions
Can you factor a builder draw tied to a flooring install?
Often, yes, once the work is complete and the draw or invoice is approved. Terms vary by builder, so tell us the specifics.
Do you finance the material order itself, not just the invoice after?
Some working capital and line of credit products can cover an upfront material order; factoring works on the invoice after the job is billed. Tell us which side of the job you need to cover.
Can I finance a floor sander or other prep equipment?
Yes, through equipment financing, new or used depending on the lender.
What if a builder disputes part of an invoice?
Most factoring is recourse, meaning you may need to resolve or buy back a disputed invoice. Ask about non-recourse options if disputes are common for you.
Guides
Guides for flooring
Related
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Construction (all trades) · General contractors · Roofing · HVAC · Plumbing · Electrical
Where we work: all US states · all Canadian provinces
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