Key takeaways
- Most of our funding partners look for 6+ months in business and $10,000+ in monthly deposits.
- For short-term funding, your last 4 months of business bank statements matter more than almost anything else.
- Negative balance days, NSF fees, and too many existing advances are the most common reasons files get declined.
The quick qualification check
Before you apply anywhere, compare your business against these typical requirements. Every funder is different, but this is the general landscape.
| Requirement | Most of our funding partners | Banks and SBA lenders |
|---|---|---|
| Time in business | 6+ months | Often 2+ years |
| Monthly deposits | $10,000+ | Varies; profitability matters |
| Credit | All profiles considered | Strong credit usually required |
| Documents | 4 months of bank statements and a photo ID | Tax returns, financial statements, often a business plan |
| Contractor license | Active license for your trade | Active license for your trade |
| Typical timeline | Days | Weeks to months |
What funders review
1. Monthly deposits
This is the biggest factor for short-term funding. Funders look at your average deposits over several months, and consistency matters. One huge month doesn't make up for three thin ones. Transfers between your own accounts and proceeds from other funding usually don't count as revenue.
2. Time in business
Measured from when the business started, or from when current ownership took over. Most of our partners start at 6 months.
3. Daily balances and negative days
Funders want to see that your account can carry a new payment. Frequent days below zero are one of the clearest warning signs on a file.
4. NSF and overdraft activity
A few returned payments are survivable. A steady pattern tells a funder the business can't absorb another debit.
5. Existing funding
Current advances, loans, and equipment payments show up as recurring debits. The more positions you already carry, the less room there is for a new one.
6. Your contractor license
Contractor-focused funders usually verify that your license is active and matches your trade. In California, anyone can look up a license's status, classification, and bond on the Contractors State License Board (CSLB) website. An expired or suspended license can stop a deal cold.
7. Credit
For many short-term products, credit affects your price more than your approval. For bank loans, SBA loans, and equipment financing, it matters a lot more.
Documents you'll need
- Your last 4 months of complete business bank statements, downloaded as PDFs with every page
- The front of your driver's license or state ID
- Your business legal name, EIN, entity type, and start date
- Business and home addresses
- Ownership percentage for each owner
For larger requests, bank loans, or lines of credit, you may also need tax returns, a year-to-date profit and loss statement, a balance sheet, an accounts receivable aging report, and a list of current debts.
How funders read bank statements
Underwriters are looking for a story that makes sense. Here's what they notice:
- Revenue trend. Steady or growing beats a sudden drop.
- Seasonality. A roofer with a slow winter is normal. Be ready to explain it.
- Clean separation. Business income belongs in a business account, not mixed with personal spending.
- Recurring payments. Existing advances, loans, and leases are easy to spot.
- Large one-time deposits. Have a quick explanation ready, like a big insurance payout or a completed commercial job.
Tip: Download official PDF statements from your bank's website or app. Screenshots and photos of paper statements usually get rejected and slow your file down.
Common reasons for declines, and what to do
| Reason | What it means | What to do |
|---|---|---|
| Too new | Under 6 months in business | Keep deposits steady and reapply at 6 months |
| Low deposits | Under about $10,000 a month | Run all job income through one business account |
| Negative days | The account dips below zero often | Keep a cushion and time payables around deposits |
| NSF fees | Payments are bouncing | Go 60 to 90 days without a returned payment before applying |
| Too many positions | Several active advances or loans | Pay down balances before adding more |
| License issue | Expired, suspended, or wrong classification | Resolve it with the CSLB before applying |
A 30-day plan to get fundable
Week 1
Move all job income into one business checking account. Look up your license on the CSLB website and confirm it's active.
Week 2
Download your last four statements as PDFs. Note any big one-time deposits or dips and why they happened.
Week 3
Clean up negative days and returned payments. Pause nonessential auto-debits until the account holds a cushion.
Week 4
Know your numbers: average monthly deposits, current payments, and exactly how much you need and why. Then apply.
Once you know you qualify, the next question is which product fits. Our business funding guide compares every option, and the working capital guide shows how to check whether a job can afford the cost.
Think you're ready? Find out in 2 minutes.
Free, no obligation, and the initial review uses a soft credit inquiry. If you're not in range yet, we'll tell you straight.
Frequently asked questions
Can I qualify for contractor funding with bad credit?
Often, yes, for short-term products. Many funding partners weigh deposits more than credit, though lower scores usually mean higher costs. Banks and SBA lenders typically require stronger credit.
Can a new contractor qualify?
Most of our funding partners want at least 6 months in business. If you're newer, focus on building a clean deposit history in a business account and reapply once you reach 6 months.
Do I need an active contractor license?
For contractor-focused funding, yes. Funders usually verify that your license is active and matches your trade. Outside California, you'll need whatever license your state requires.
Can a sole proprietor qualify?
Yes, if you have a business bank account with steady deposits and meet the time-in-business requirement.
Will checking my options affect my credit?
Our initial review uses a soft inquiry, which doesn't affect your score. Some funding partners may run additional credit checks during underwriting.
This guide is general information, not legal, tax, or financial advice. Requirements vary by funder and change over time. Funding Expansion is a commercial funding broker, not a lender. Funding is provided by third-party funding partners and is subject to qualification.