An electrical contractor with $10,000+/month in average deposits and a 500+ FICO can access $15,000 to $500,000 via merchant cash advance. The approval process takes 2–4 hours, funds deposit in 24–48 hours, and repayment is a daily percentage of bank deposits — no fixed monthly payment, no collateral pledged.
Qualification Requirements for Electricians
MCA approval for electrical contractors is based on bank statement performance, not credit score alone. The underwriting model is designed for contractors — irregular deposit patterns (big commercial milestone payments mixed with steady residential service revenue) are normal and accounted for.
Funding Amounts by Revenue Tier
| Monthly Deposit Average | Typical MCA Range | Factor Rate | Holdback % Range |
|---|---|---|---|
| $10,000–$20,000 | $10,000–$28,000 | 1.20–1.38 | 12–18% |
| $20,000–$50,000 | $20,000–$70,000 | 1.18–1.32 | 10–16% |
| $50,000–$100,000 | $50,000–$145,000 | 1.15–1.28 | 10–15% |
| $100,000–$200,000 | $100,000–$280,000 | 1.14–1.24 | 8–14% |
| $200,000+ | $200,000–$500,000 | 1.12–1.22 | 8–12% |
Commercial Job Float: The #1 Use Case for Electrical MCAs
The most common reason electrical contractors come to us is to solve the commercial job float problem. Here's how it works:
The Commercial Electrical Float Problem
An electrical contractor wins a $180,000 commercial buildout. The contract calls for payment in three milestones: 30% at rough-in, 30% at trim, 40% at final inspection. The problem: materials must be purchased before work starts, subcontractors and journeymen need to be paid weekly, and the GC often delays milestone payments by 30–45 days past the agreed date.
The contractor is fronting $40,000–$60,000 in materials and labor before the first check arrives. Without working capital, taking this job means turning down other residential service work.
The MCA solution: A $50,000 advance bridges the material and labor costs. The contractor takes the commercial job AND keeps the service van running residential calls. The advance repays over 4–6 months from the combined revenue stream.
Other Uses for Electrical Working Capital
How Repayment Works for Electrical Contractors
MCA repayment is a fixed percentage of daily bank deposits — not a fixed monthly payment. This structure is well-suited to electrical contractors because:
- Commercial milestone payments create deposit spikes that pay down the advance faster
- Slow months (waiting on GC payments) mean lower daily deductions automatically
- No risk of being delinquent during a receivable gap — the holdback simply deducts less when deposits are lower
Typical holdback rates for electrical contractors: 10–18% of daily deposits. On a day with $5,000 in deposits, a 12% holdback means $600 applied to repayment.
How to Apply
- Gather the last 6 consecutive months of business bank statements (PDFs from your bank portal, not screenshots)
- Complete the short application: business name, EIN, time in business, estimated monthly revenue
- Receive approval decision and offer within 2–4 hours
- E-sign the agreement and receive ACH deposit within 24–48 hours
Fund Your Electrical Business Today
No collateral. No hard pull during initial review. 500 FICO minimum. Decision in hours.
Check My Rate — 10 MinutesFrequently Asked Questions
- Can a sole proprietor electrician get an MCA?
- Yes. Sole proprietors qualify using their personal checking account if business transactions flow through it, or a dedicated business checking account. The EIN is preferred but a sole prop can apply with SSN. See our sole proprietor MCA guide for details.
- Does having union payroll affect MCA eligibility?
- No. Union scale payroll is simply a cost line in your operations. Underwriters look at deposit volume and consistency — not your cost structure. Higher revenue contractors with union labor typically have higher deposit volumes, which supports larger advance amounts.
- My deposits are lumpy because commercial jobs pay in milestones. Does that hurt my approval?
- Not significantly. MCA underwriters understand construction and electrical billing cycles. They look at the 3-month total and the average — not whether deposits are perfectly consistent day-to-day. Milestone payment patterns are common in contractor applications.
- What's the difference between MCA and equipment financing for an electrician?
- Equipment financing (compare MCA vs equipment financing) is tied to specific assets and uses those assets as collateral. MCA is unsecured, can be used for anything, and repays from deposits. For a service van or a specific tool purchase, equipment financing may be cheaper. For working capital, payroll, or general liquidity, MCA is faster and more flexible.