Core docs needed for every contractor application.
Bank Statements
3 consecutive months of business bank statementsMost recent 3 months from your primary business checking account. All pages. Must show the account where GC and owner payments deposit.
Gap month explanation letter (if any month under $10K)Write a 1–3 sentence explanation: "February shows low deposits because the Smith project closed in January. The Henderson contract started March 15. Current pipeline: $380,000 in signed work." Attach this to your application.
Business Identity
Voided business checkFor ACH setup. Write "VOID" in large letters across the face of a printed check.
Valid government-issued photo IDDriver's license or passport. All owners with 20%+ interest must provide ID.
Business licenseState or local business license showing legal registration.
Contractor license (state-issued)General contractor, specialty contractor, or trade license. Required for construction industry applications.
Helpful to Have Ready
Active project contracts or Letters of IntentNot required, but significantly helps if your current 3-month window shows lower deposits. Signed contracts prove future revenue that's not yet in your statements.
Most recent tax return (business)May be requested for advances over $100,000.
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Bank Statement Health Check
Contractor-specific. Project-based deposits look different from retail — know what underwriters see.
Contractor Note: Project-based deposits don't need to be daily. Underwriters evaluate monthly totals, not daily frequency. 4 large draw deposits per month averaging $60K total = same result as 60 daily deposits averaging $60K total.
Calculate 3-month average monthly depositsSum the total deposits in each of the 3 months and divide by 3. This is your primary qualification number. Use the contractor calculator.
Identify gap months (months under $10K in deposits)Any month with under $10K in deposits will significantly reduce your offer. Plan your explanation letter. If possible, delay your application until a stronger month enters your 3-month window.
Count NSFs across all 3 monthsTarget: 0. Acceptable: 1–2/month. Problem: 3+/month. Even 1 NSF in a gap month is worse than 3 NSFs in a strong deposit month.
Identify existing MCA daily paymentsLook for regular daily ACH debits. More than 2 active MCA positions is a significant red flag. Consider consolidating before applying for new funding.
Verify all project payments land in this accountGC checks, owner direct payments, materials reimbursements, change order payments — all must be in this business account. Personal account deposits don't count.
Check average daily balanceTarget: $3,000+. Low ADB with high deposits means money comes in and leaves immediately — may suggest thin margins or fast outflows. Underwriters notice this.
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Gap Month Strategy
What to do if any month in your 3-month window has very low deposits.
Gap months are the single biggest challenge unique to contractors. A zero-deposit month in your window can cause a decline even if your other 2 months are excellent. These items help mitigate it.
Draft a Letter of Explanation (LOE)1–3 sentences maximum: what project closed, when the next project started, and what your current signed pipeline is worth. Attach to your application package.
Attach active project contracts or LOIsSigned contracts for upcoming work prove future revenue that isn't yet in your statements. This changes the underwriter's calculation.
Consider waiting 30 days if a strong month is upcomingIf you expect a large project payment in the next 30 days, waiting for that month to enter your 3-month window may produce a significantly better offer.
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Application Day
Submit before noon. Have your LOE ready. Be available by phone.
Complete the application accuratelyLegal business name, EIN, contractor license number, type of work, time in business, average monthly revenue (use your deposit average), desired funding amount, and intended use.
Attach LOE for any gap monthEven if you think it's unnecessary, attach it. A 2-sentence LOE can be the difference between approval and decline when a month shows under $10K.
Submit before noon for same-day reviewApplications received after noon EST often roll to the next business day.
Be available by phone 10am–4pm on application dayUnderwriters may call to verify project status, client relationships, or bank statement items. Missed call = 24-hour delay.
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After Approval
Contractor-specific considerations for MCA repayment with draw schedules.
Confirm advance amount, factor rate, term, and daily paymentVerify every number before signing. Make sure the daily payment is sustainable even during project gap weeks.
Plan for daily payments during project transition gapsIf you have a gap between projects, the daily ACH continues regardless. Maintain a $3,000–$5,000 minimum buffer in your account during transitions.
Contact your funder proactively before any gap weekIf a draw is delayed or a project transitions, call your funder 2–3 days before the expected shortfall — not after an NSF occurs.
Funds typically deposit within 24–48 hours of contract signing. The ACH setup will begin 1–2 business days after funding. Verify your account has enough to cover the first payment.
Checklist Done? Apply Now.
Application + 3 months of statements. Decision in 24–72 hours.
T.A.G. Business Funding