Built for Contractors · Free File Review

MCA Debt Relief for Construction Companies: Protect the Jobs, Fix the Debits

No industry gets pulled into MCA trouble like construction — you front weeks of payroll and materials, get paid in draws that arrive late and disputed, and the daily debits take no notice of either. If the advances that once bridged a slow draw are now eating the draws themselves, you’re in the most common contractor story there is — and the way out is built around two rules: crews keep working, and your bonding capacity comes out intact.

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You’re in the right place

JT Milton Merchant Advisory restructures whole MCA positions for businesses whose revenue can’t pause — and contractor files carry their own stakes: draw schedules to protect, GC relationships to preserve, and UCC filings that quietly threaten your bonding line. The review is free, the answer is honest, and the plan starts from your backlog and draw timing, not a sales script.

Name the Problem

Draws, retainage, and daily debits: a mismatch by design

Construction revenue arrives in progress payments — after the work, after the inspection, after the GC’s own payment cycle — with retainage held to the end. Costs leave daily. A fixed daily debit welded onto that cash-flow shape means every slow draw becomes a crisis, which is exactly the situation reconciliation clauses exist for — the first thing we check in every contractor agreement. And when one advance has already become three, it’s a position problem: one workout, every funder at the table, sized to what your draw schedule actually supports.

The Hidden Stake

What MCA liens quietly do to your bonding capacity

MCA funders routinely file blanket UCC-1 liens against your receivables and assets — and sureties read lien searches. For a bonded contractor, a blanket lien plus visible daily debits can shrink the bonding line your next public job or GC contract depends on, costing you work that would have paid the debt. That’s why contractor workouts have a second deliverable beyond sustainable payments: getting the position resolved and the UCC filings terminated — see payoff letters, zero-balance letters, and UCC-3 terminations — so the lien search your surety runs next season comes back clean. If a funder has already sent notices to your GC or project owner, move this week: draw freezes mid-payroll are how contractor stories turn bad.

Common Questions

Contractors and MCA debt: FAQ

Why do construction companies end up drowning in MCAs?

Because construction cash flow is draws and retainage: you front payroll, materials, and equipment for weeks, then get paid in progress payments — often slow, often disputed, with retainage held back until the end. A daily fixed debit sits on top of that mismatch ignoring whether this was a draw week or a front-costs week. One slow-paying GC or one weather month opens the gap the first advance fills, and the debits open the next one. It's the most-sued industry profile we see, and it's structural — which means the fix is structural too.

Can MCA debt hurt my bonding capacity?

Yes — and for bonded contractors this is often the biggest hidden cost. MCA funders typically file blanket UCC-1 liens against your assets and receivables, and sureties review liens, liquidity, and obligations when setting your bonding line. A blanket lien plus visible daily debits can shrink or freeze the bonding capacity your next public or GC job depends on. Resolving the MCA position — and getting the UCC filings terminated afterward — is bonding-capacity work, not just debt work. It belongs in the plan from day one.

The funder sent notices to my GC or my customers. What now?

Payment-redirection notices to a general contractor or project owner are a serious escalation — they can freeze your draw right when payroll is due, and they spook the relationships your pipeline depends on. The notices have legal limits (recipients can demand reasonable proof of the assignment, and defective notices are challengeable) — see our customer-notice guide and move the same week, not the same month.

Will restructuring keep my crews working and my jobs on schedule?

That's the design goal: a combined payment structure your actual draw schedule supports — payroll, materials, and insurance first — negotiated across every funder at once, resolved as paid in full wherever possible. Funders take realistic contractor workouts seriously because a working crew generating draws beats a shut-down job generating nothing. The free review starts from your real numbers: contracted backlog, draw timing, retainage, and what's genuinely available for debt service.

I've been sued (or my account froze mid-job). Same process?

Same process plus a deadline: most MCA suits land in New York courts regardless of where you build — generally 20–30 days to respond — and an unanswered suit becomes the default judgment that freezes accounts mid-payroll. Handle the deadline first (our lawsuit guide walks it through), then the whole position. Both start with the same free call.

The jobs don’t pause for a workout — and they don’t have to.

Free contractor file review: backlog and draws in, fixed costs out, every funder at the table, and a payment structure that keeps crews on the job.

Request my free review Call (929) 263-2835