Industry financing

Construction Business Loans

Financing solutions for construction companies, contractors, and general contractors. Construction business loans support equipment, vehicles, materials, payroll, and working capital needs. Common uses include heavy equipment (excavators, bulldozers), trucks and trailers, materials and supplies, crew payroll, and project financing. Available loan types: equipment financing (6–30% APR) for machinery, term loans ($25k–$500k), lines of credit ($25k–$250k), and SBA loans (6–13% APR). Alternative lenders offer approval within 24–72 hours. Prerequisites include 6+ months in business, $10k+/month revenue, and 600+ credit score.

Common Financing Needs

  • Equipment & Vehicles: Heavy equipment (excavators, bulldozers), trucks and trailers, tools and machinery, fleet expansion
  • Materials & Supplies: Lumber and building materials, concrete and aggregates, electrical and plumbing supplies, project-specific materials
  • Payroll & Labor: Crew payroll, subcontractor payments, seasonal hiring, benefits and insurance
  • Project Financing: Project startup costs, working capital during projects, bridge financing, bonding and insurance

Best Loan Types for Construction Businesses

1. Equipment Financing — Best for heavy equipment, trucks, trailers, and machinery. Rates: 6–30% APR, Terms: 2–7 years, Amounts: $25k–$500k+. Equipment serves as collateral. Fast approval (24–72 hours).

2. Business Line of Credit — Best for materials, payroll, and ongoing project expenses. Rates: 8–25% APR, Limits: $25k–$250k. Draw as needed; pay interest only on what you use.

3. Term Loans — Best for large purchases, fleet expansion, and one-time needs. Rates: 8–25% APR, Terms: 1–5 years, Amounts: $25k–$500k. Fixed monthly payments.

4. SBA Loans — Best for large expansion, real estate, and established businesses. Rates: 6–13% APR (lowest), Terms: 5–25 years, Amounts: Up to $5M. Requires 2+ years in business.

Industry-Specific Challenges

Project-Based Revenue: Construction revenue relies on projects with payment delays. Lines of credit bridge gaps between project milestones and final payment.

High Equipment Costs: Heavy equipment requires significant capital. Equipment financing distributes costs over time while generating revenue.

Seasonal Fluctuations: Weather impacts construction schedules. Lenders may assess annual revenue or peak-season performance.

Qualification Requirements

  • Time in Business: 6+ months (12+ months preferred, 2+ years for SBA)
  • Monthly Revenue: $10,000+ (higher for larger loans)
  • Credit Score: 600+ (higher scores get better rates)
  • Licenses: Contractor license and bonding may be required

Frequently asked questions

Can I finance project materials?
Yes, lines of credit work well for materials and supplies. Draw funds for each project and pay interest only on amounts used. Term loans are also available for larger material purchases.
What's the best loan for heavy equipment?
Equipment financing is optimal. Equipment becomes collateral, rates are competitive (6–30% APR), and approval is fast (24–72 hours). Terms typically span 2–7 years.
Can I get financing for payroll?
Yes, lines of credit support payroll needs. Draw funds to pay crews and subcontractors, then repay as projects generate income. Flexible access manages cash flow effectively.

Ready to get funded?

Apply once and get a clear funding offer in 24–72 hours — no hard credit pull to pre-qualify.

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