CFACommercial Funding Advisory

Facility Services

Business Funding for Remodeling Companies

Remodeling companies carry the financial burden of every project from deposit to final payment. Materials, subcontractors, permits, and labor all need to be paid during the project, but final payment does not arrive until the punch list is complete and the client signs off. Kitchen and bathroom remodels average $25,000 to $75,000, and whole-home renovations can exceed $200,000. Financing the gap on multiple concurrent projects strains even well-run companies.

Common Uses

What Remodeling Companies Use Funding For

  • Fund material purchases for active remodeling projects including cabinets, countertops, and fixtures
  • Pay subcontractors for plumbing, electrical, and HVAC work on renovation projects
  • Cover permit fees, architectural plans, and project management overhead
  • Invest in showroom space to help clients visualize finishes and drive new project sales

Funding Options

Best Funding Types for Remodeling Companies

Business Line of Credit

The most flexible option for remodeling companies managing multiple projects. Draw funds as each project's material and labor costs come due, then repay from progress payments and final billings.

Invoice Factoring

Factor outstanding invoices from commercial remodeling clients who pay on net-30 terms. Residential clients typically pay at completion, but commercial and property management clients can take weeks or months.

Equipment Financing

Finance demolition equipment, dust containment systems, and work trailers. Remodeling requires specialized tools that differ from new construction, and equipment financing spreads those costs over time.

What Lenders Look For

Qualification Notes for Remodeling Companies

A general contractor or remodeling contractor license and liability insurance are required by every lender
Lenders review your average project size, number of concurrent projects, and completion timelines
Companies that carry home improvement contractor bonds and offer written warranties demonstrate professionalism that lenders reward

Ready to Explore Funding for Your Remodeling Companie Business?

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