Call us instead of filling out forms. We'll tell you in about ten minutes whether funding can realistically land in time, or whether you should be working a different angle with your GC or your bank.
Call (949) 749-7100Key takeaways
- Working capital is the fastest route, often 1–3 business days after approval.
- Invoice factoring is usually cheaper if the money is already owed to you on an invoice.
- Same-day funding is rare. Plan for two to three days, not two hours.
- Only borrow against payroll you can repay from work already sold. Covering payroll with debt twice in a row is a warning sign.
Your realistic options
| Option | Speed | Best when |
|---|---|---|
| Working capital advance | 1–3 days | You need cash now and your deposits are steady |
| Invoice factoring | 1–5 days | A GC or insurer already owes you on a completed invoice |
| Business line of credit | Same day, if already open | You set it up before you needed it |
| Customer deposit or draw | Hours to days | Free, and always worth asking first |
Before you pay for funding, call the GC and ask for an early or partial draw. It costs nothing and sometimes solves the whole problem. If that fails, factoring against a real invoice usually beats an advance on cost.
What it costs, honestly
A working capital advance to cover $40,000 of payroll at a 1.25 factor rate means $50,000 back, typically over a few months. That $10,000 is the price of making payroll on time.
Whether that's worth it depends on what missing payroll would cost you. Losing a crew mid-job, failing to finish on schedule, or triggering wage-and-hour penalties can cost far more than $10,000. But if the job those workers are on won't clear enough to cover the cost, funding just moves the problem to next month.
Our rule: fund payroll against work you've already sold, not work you hope to win. Use our calculator to check the job can carry it. If it can't, we'll tell you and help you think through the alternatives.
How to move fast
Most delays are documents, not underwriting. Have these ready before you start:
- Four months of business bank statements as PDFs from your bank's app or website. Not screenshots.
- A photo of your driver's license.
- Your EIN and entity details exactly as they appear on your filing.
- The invoice or contract if you're factoring.
- A phone you'll answer. Underwriting questions come up, and an unanswered call costs a day.
Apply in the morning, not at 5pm. Funding usually moves by ACH, so a Friday afternoon approval often means Monday money.
If you can't make payroll at all
Be careful here. Wage laws are strict, and in many states late wages carry penalties on top of the wages themselves. Rules vary by state, so check with your state labor agency or an employment attorney if you're going to be short.
Practical steps contractors take: pay hourly crew first, talk to employees before payday rather than after, ask suppliers for terms to free up cash, and if funding is coming but a day late, tell people exactly when the money lands. Silence does more damage than the delay.
Stop the cycle
- Bid the cash gap in. If a GC pays net-60 and you pay weekly, that carrying cost belongs in your price.
- Negotiate deposits and draws. A 30% mobilization payment prevents most payroll crunches.
- Invoice the day work is complete, not at month end. Every day you wait is a day added to net-30.
- Set up a line of credit while things are good. Cheaper than an advance, and it exists before the emergency.
- Watch your retention. Money held back on several jobs adds up to a payroll or two.
Need to cover payroll this week?
Apply in about 5 minutes with 4 bank statements, or call and we'll tell you straight whether funding can land in time. Free to apply, no obligation.
Payroll funding FAQ
Can I get payroll funding the same day?
Occasionally, if you apply early, your documents are clean, and everything lines up. Plan on one to three business days. Anyone promising same-day funding before seeing your statements is guessing.
Is factoring better than an advance for payroll?
Usually, when you have a completed invoice from a creditworthy customer. It generally costs less because it's tied to money already owed. The trade-off is that your customer may be notified.
Do I need good credit?
Not necessarily. Working capital leans on your deposits, and factoring leans on your customer's credit. See funding with bad credit.
What if I already have an advance?
It's possible but riskier. Existing payments reduce what your deposits can support, and stacking advances to cover payroll is one of the fastest ways contractors get into trouble. Tell us what's outstanding and we'll be straight with you.
✓ Reviewed by the Funding Expansion contractor funding team · Last updated September 2026
Sources
- U.S. Department of Labor, Wage and Hour Division: federal wage payment rules
- California Labor Commissioner's Office: state wage payment requirements and penalties
- U.S. Small Business Administration: loan and line of credit programs
- California Contractors State License Board: licensing and payment rules for contractors
General information only, not legal, tax, or financial advice. Wage and payroll laws vary by state; consult your state labor agency or an employment attorney about your obligations. Examples are illustrative; actual rates, terms, and costs vary by funder and qualification. Funding Expansion is a commercial funding broker, not a lender.