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Roofing contractors rely on financing when they need to spend money before they collect it from a customer.
Financing can help you cover the day-to-day expenses and the long-term costs that come with running your roofing business. Use it to buy roofing materials up front or to cover payroll for a crew that's already been working for days.
Below, I cover financing available for roofing contractors, compared on speed and cost, and what lenders consider when reviewing your application.
| Financing option | Funding speed | Typical amount | Interest rate or cost | Common use |
|---|---|---|---|---|
| Short-term business loan | As fast as same day | $10,000 to $5 million | APRs starting at 6% | Larger one-time buys and expansion |
| Business line of credit | As fast as same day | Up to $5 million | APRs starting at 6% | Seasonal gaps and repeat material buys |
| Equipment financing | One to five days | Up to 100% of equipment value | APRs starting at 6% | Trucks, trailers, and lifts |
| Home equity line of credit (HELOC) | As fast as one week | Up to $750,000, based on available home equity | APRs as low as prime | Longer-term borrowing secured by your home |
| Invoice factoring | One to two weeks | Up to 100% of invoice value | 0.5% to 5% per invoice per month | Commercial jobs paying on 30 to 90-day terms |
| Merchant cash advance | As fast as same day | Up to $5 million | Factor rate 1.08 to 1.45 | Quick cash drawn against future sales |
| SBA loans | Two weeks at the fastest, 30 to 90 days typical | Up to $5 million | APRs starting at 6.75% | Long-term working capital and acquisitions |
Types of Financing for Roofing Companies
If you're financing business growth or keeping pace during a slow season, roofing business loans let you cover your business needs without straining cash flow.
Here's the financing for roofing companies available through Clarify Capital.
Short-Term Business Loans
A short-term business loan is a lump sum of money you repay on a fixed schedule. It's commonly used for a large, one-time purchase like a bulk inventory order or buying out a partner.
Term loans run from $10,000 to $5 million with APRs starting at 6% through Clarify Capital's lender network. Terms run from six to 36 months with approval as quick as same day.
Business Lines of Credit
A business line of credit is a revolving credit line you draw on as needed and then repay and draw again. You only pay interest on what you use. You can pull money to cover roofing materials, pay it back, and then take out more money for another working capital cost. Lines go up to $5 million with revolving terms of six to 36 months.
Equipment Financing
Use equipment financing to cover the cost of a new truck or a tear-off setup. The equipment serves as collateral, which secures the loan.
Equipment loans let you finance up to 100% of the equipment value with terms ranging from 12 to 72 months. APRs start at 6%, and funding can land as fast as one to five days.
SBA Loans
SBA loans are partially guaranteed by the U.S. Small Business Administration (SBA), which lets lenders offer more competitive interest rates and repayment terms. The 7(a) program covers most of what roofing contractors need, from working capital costs to equipment financing. The 504 program comes into play if your deal includes a fixed asset like real estate or long-life equipment.
Borrow up to $5 million with APRs starting at 6.75%. Approval for these loans takes more time than other forms of financing. It can come as fast as two weeks, but typically takes 30 to 90 days.
Invoice Factoring
Invoice factoring advances cash against your receivables instead of adding debt to your roofing business. Advance up to 100% of the invoice value with fees from 0.5% to 5% per invoice per month. Approval depends more on your customer's credit score than on yours.
Invoice factoring doesn't apply to residential work paid on completion.
Merchant Cash Advances
A merchant cash advance lets a lender purchase a share of your future sales. Advance up to $5 million at a factor rate of 1.08 to 1.45. Lenders typically collect a daily, weekly, or monthly percentage of sales. MCAs make sense if you need money quickly, but they cost more than other financing options.
Minimum Qualifications
$10,000 in monthly revenue
Your business must earn at least $10K per month in a business bank account.
500+ credit score
You can get approved with any credit score. But the better your credit rating, the better interest rates lenders offer. Your FICO score should be above 500.
Minimum six months in business
Your company should be operational for a minimum of six months. This shows business lenders that your company is sustainable and won't go out of business.
Have a business bank account
Your Clarify advisor will need three or four months of your most recent bank statements to verify income. This is just to see you're actually making $10K+ month in revenue.
Using a HELOC To Finance Your Roofing Business
One other financing option I'll mention is a home equity line of credit (HELOC).
The biggest difference between a HELOC and the other roof financing options on this list is that lenders underwrite HELOCs based on your personal creditworthiness, rather than the businesses. This means if you can't pay back the loan, you're putting your home at risk.
HELOCs are revolving credit lines that you can draw on, repay, and draw again. Lines run up to $750,000 through Clarify Capital's lender network.
What It Costs To Run and Grow a Roofing Company
Roofing companies earn anywhere from $70,000 to $5 million a year, and most business owners take home somewhere between $70,000 and $250,000.
But roofing contractors often have to spend up front before they see those kinds of returns. Let's break down what it actually costs to operate a roofing business.
Truck and trailer
$18,000 to $53,000
Insurance
$8,000 to $23,000 per year
License and bonding
$2,000 to $10,000
Advertising and marketing
$5,000 to $15,000
Equipment and vehicles
$50,000 to $100,000
Phone, computer, and other business tech
$500 to $2,000 per month
What Lenders Consider
Lenders weigh each of these pieces differently, but expect to provide details on all of the below.
Time in business
Whether you're an established roofing contractor or a newer shop
Revenue
Expect to provide some detail on both your monthly and annual revenue
Personal credit score
Even if you're borrowing for the business, lenders consider your personal creditworthiness
Collateral
Real estate, equipment, or receivables that secure the loan
Cash flow
Lenders like to see regular deposits in your business bank account
Credit history
Any existing debt or liens against the business
Tips for a Stronger Contractor Financing Application
A strong application comes down to a few key areas. Here's what I tell my customers.
Check your personal credit report
Pay down existing balances and make sure there aren't errors on your credit report
Organize your financials
Expect to provide tax returns and bank statements
Show consistent job volume
Lenders look for a filled schedule and signed contracts
Detail the business plan
Explain exactly how you plan to use the financing to support your business
Get licensed, bonded, and insured
Keep your credentials current so you can continue to get commercial work
Separate personal and business finances
Separating your business and personal finances typically makes underwriting smoother
Roofing Contractor Financing With Clarify Capital
Financing can help you cover the cost of doing business without affecting your cash flow, whether you need a line of credit to get you through storm season or equipment financing for a new truck.
When you're ready to see what you qualify for, apply today with Clarify Capital. Our network of 75+ vetted, reputable lenders reviews your application to find the best financing option for your needs. Checking your options won't affect your credit score.
FAQs on Roofing Contractor Financing
These are the top questions I hear from roofing contractors.
What Is the Monthly Payment on a $50,000 Business Loan?
It depends on the interest rate and the repayment term. At a 6% APR over 24 months, you'd pay $2,216 a month. Stretch that to 36 months, and you pay $1,521.
What Is the 25% Rule for Roofing?
The 25% rule is a building code provision that states once you remove and replace more than 25% of a roof within any 12-month period, the whole covering has to be replaced to meet current code.
How Do You Qualify for a $200,000 Business Loan?
Lenders look for at least two years in business, annual revenue that covers a new payment, and strong personal and business credit scores. Depending on the type of financing, you may also have to provide collateral.
Is My Information Secure When I Apply?
Clarify follows SOC 2 security principles. Applications go through an encrypted online form, and the initial review runs as a soft credit inquiry.
Bryan Gerson
Co-founder, Clarify
Bryan has personally arranged over $900 million in funding for businesses across trucking, restaurants, retail, construction, and healthcare. Since graduating from the University of Arizona in 2011, Bryan has spent his entire career in alternative finance, helping business owners secure capital when traditional banks turn them away. He specializes in bad credit funding, no doc lending, invoice factoring, and working capital solutions. More about the Clarify team →
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