Roofing funding playbook by revenue stage: Under $20K/month — use supplier terms and avoid financing if possible. $20K–$50K/month — MCA access opens; use for material bridge and payroll gaps only. $50K–$100K/month — business line of credit becomes accessible; use LOC for working capital and reserve MCA for emergency speed situations.
Storm deposits inflate what you qualify for. The danger: daily payments don't stop when storm season ends. This guide gives you the off-season sustainability formula and the advance sizing rules that protect roofing contractors.
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500 FICO minimum. Bank declines OK. Revenue matters more than credit score. Most decisions in 24 hours.
500 FICO minimum · $4K–$6K+/month revenue · Funded in 1–3 days
What is the right funding strategy for a roofing company?
Roofing funding playbook by revenue stage: Under $20K/month — use supplier terms and avoid financing if possible. $20K–$50K/month — MCA access opens; use for material bridge and payroll gaps only. $50K–$100K/month — business line of credit becomes accessible; use LOC for working capital and reserve MCA for emergency speed situations. Over $100K/month — SBA 7(a) and conventional equipment financing become viable; build a portfolio of low-cost tools for different capital needs.
How do roofing companies avoid the MCA debt spiral?
The MCA debt spiral: take advance, daily payments strain cash flow, miss a payroll, take a second position, double daily payments, cash flow collapses. Avoiding it: (1) never take an advance where the daily payment exceeds 15% of your average daily deposits; (2) do not stack positions without a clear revenue event that supports the combined daily payments; (3) use MCA for specific, capital-productive needs — not to cover ongoing operating losses; (4) maintain a cash reserve equal to 30 days of fixed costs at all times.
What should a roofing company negotiate before signing an MCA?
Key MCA negotiation points: (1) prepayment discount — if you expect to pay back early, request an explicit early payoff rate; (2) payment modification terms — understand the process for requesting a reduced daily payment if revenue drops; (3) renewal terms — ask what renewal rate and size you would qualify for after successfully completing this advance; (4) position exclusivity — confirm the funder is not restricting you from certain types of future financing; (5) confession of judgment — if this clause is present, understand its implications fully before signing.
