California CCFPL — What It Means for Your Contractor Business
Any company offering you a merchant cash advance in California must provide a standardized CCFPL disclosure form before you sign. This includes: total dollar repayment amount, estimated APR equivalent, finance charge, holdback percentage, and term. T.A.G. provides this disclosure on all CA offers. If a funder skips this step, that is a red flag — request the disclosure before signing any contract.
Use Cases
When California Contractors Use MCA
Draw Cycle Bridge
GC issues draws on the 1st and 15th. Payroll runs on the 10th and 25th. MCA bridges the gap without delaying payroll.
Common advance: $30K–$80K
Prevailing Wage Payroll
California public works projects have long billing cycles. MCA funds prevailing wage payroll while waiting for public agency payment.
Common advance: $40K–$150K
Materials Pre-Purchase
California material costs are among the highest in the nation. MCA funds material purchases at contract start before the first draw is issued.
Common advance: $25K–$100K
New Contract Mobilization
A new contract win requires mobilization — equipment rental, crew assembly, permits, bonds. MCA funds mobilization before the first draw.
Common advance: $20K–$120K
Equipment Repair / Replacement
A broken excavator or crane in California can halt a project and trigger delay penalties. MCA funds emergency repair or replacement in 24–48 hours.
Common advance: $15K–$80K
Subcontractor Payment
California prompt payment laws create liability for GCs who delay sub payments. MCA funds sub payments on time to avoid lien exposure.
Common advance: $20K–$200K
California Markets
Contractor Funding by California Region
Los Angeles County
Largest construction market in the US. Commercial, residential, and infrastructure work. Highest average contract sizes and deposit volumes.
Typical: $40K–$500K
Bay Area (SF / SJ / Oakland)
Highest per-project revenue nationally. Tech-campus, data center, and mixed-use development drive high-value contracts. Strong deposit averages.
Typical: $30K–$400K
San Diego
Military construction, biotech campuses, residential, and defense infrastructure. NAVFAC work creates consistent public contract revenue.
Typical: $20K–$200K
Sacramento / Central Valley
State government projects, agricultural infrastructure, and residential growth corridors. Lower per-project values but high volume.
Typical: $15K–$150K
Inland Empire (Riverside / SB)
One of the fastest-growing construction markets in California. Logistics, warehouse, and residential development drive demand.
Typical: $20K–$200K
Orange County
High-end residential, commercial tenant improvement, and healthcare construction. Strong per-project average check sizes.
Typical: $20K–$250K
Rate Benchmarks — 2026
California Contractor MCA Rate Benchmarks
| Monthly Deposits | Typical Advance | Factor Rate | Holdback | Est. Term |
|---|---|---|---|---|
| $15,000/mo | $20,000–$22,500 | 1.28–1.45 | 12–15% | 8–14 months |
| $40,000/mo | $50,000–$65,000 | 1.22–1.38 | 10–14% | 10–16 months |
| $80,000/mo | $90,000–$130,000 | 1.19–1.35 | 9–13% | 10–18 months |
| $150,000/mo | $160,000–$230,000 | 1.17–1.30 | 8–12% | 12–20 months |
| $300,000+/mo | $300,000–$500,000 | 1.15–1.25 | 7–10% | 14–24 months |
Rates vary by FICO, industry, deposit consistency, and funder. California CCFPL disclosure provides exact figures before signing.
Qualification
California Contractor MCA Requirements
Minimum Monthly Deposits
$15,000/month
Minimum FICO Score
500 (soft pull only)
Time in Business
4+ months operating
Documents Required
6 consecutive months bank statements + application
Advance Range
$20,000–$500,000
CA CCFPL Disclosure
Provided on every CA offer before signing
FAQ
California Contractor Funding — FAQ
Does California require MCA disclosure for contractors?
Yes. California's SB 1235 CCFPL (effective January 1, 2022) requires providers of commercial financing under $500,000 to disclose total funded amount, total repayment amount, finance charge, APR equivalent, term, and prepayment policy. T.A.G. provides CCFPL-compliant disclosure on every CA offer before signing. If you receive a California MCA offer without this disclosure, request it in writing.
Can a California contractor get MCA between draw cycles?
Yes. Draw cycle gaps are the most common reason California contractors use MCA. When a GC issues draws on the 1st and 15th but payroll runs on the 10th and 25th, MCA bridges the gap. A California contractor averaging $60,000/month in deposits may qualify for $45,000–$90,000 within 24 hours.
What California contractor license types qualify for MCA?
All CSLB-licensed contractor types qualify — General Building (B), General Engineering (A), and all specialty licenses (C-10 Electrical, C-20 HVAC, C-36 Plumbing, C-39 Roofing, C-33 Painting, and all others). MCA approval is based on bank deposit volume, not license category.
Can a California contractor use MCA for prevailing wage payroll?
Yes. Many California public works contractors use MCA to bridge payroll between prevailing wage billing cycles. California public works projects often have longer billing cycles than private work — MCA can fund prevailing wage payroll while waiting for the public agency billing cycle.
Does California AB5 affect contractor MCA eligibility?
No. AB5 affects contractor worker classification — it does not affect MCA eligibility. MCA approval is based on the business's bank deposit volume, not how workers are classified.
Can a California contractor use MCA for materials on a new commercial project?
Yes. Materials pre-purchase is one of the most common uses for contractor MCA. In California's high-demand construction market, material costs are among the highest in the nation. MCA can fund material purchases at contract start before the first draw is issued.
How fast can a California contractor get funded?
Most California contractor applications receive a decision within 2–4 hours of submitting bank statements. Funding is deposited within 24–48 hours of contract signing. Los Angeles contractors submitting complete files before noon Pacific time are eligible for same-day wire funding.
Related Pages
Get Funding for Your California Contractor Business
500 FICO OK · No hard pull · CCFPL California disclosure provided
All CSLB license types · LA, Bay Area, San Diego, Sacramento & statewide