Live market data
Pulled from official U.S. government APIs. Click a card to view the source.
TL;DR
Construction contractors need lines of credit (for materials and labor before progress draws), equipment financing (for trucks, excavators, tools), and working capital (for payroll between draws). Most contractors qualify with $35K+ monthly deposits and 6+ months in business. AR-heavy GCs often add invoice factoring on completed milestones.
Why contractors need a stack, not a single loan
Construction cash flow is brutal: pay materials, pay subs, pay payroll — then wait 30–90 days for the progress draw. Then do it again on the next phase. A single loan rarely covers all of that. The right stack is line of credit + equipment financing + occasional MCA for emergency cash.
The construction financing stack
- •Line of credit — primary working capital tool. Draw before draws come in, repay after.
- •Equipment financing — for trucks, trailers, excavators, lifts, tools. Up to 100% LTV.
- •Invoice factoring — for completed milestones with slow-pay GCs or municipal clients.
- •Term loan — for buildouts (yard, shop, office) or business expansion.
Pros and cons of a contractor line of credit
- •Pros: only pay interest on what you draw, revolving, fits draw-pay-draw cycle.
- •Cons: requires 600+ FICO and 12+ months in business for best pricing.
Common mistakes contractors make
- •Using MCA for material orders that should sit on a 30-day vendor account
- •Skipping equipment financing on a $200K excavator and missing Section 179
- •Funding payroll on an MCA when factoring the completed milestone is half the cost
- •Underestimating retention holdbacks (often 5–10% of contract value)
Run the numbers
Business Term Loan Calculator
Standard amortization: fixed APR, fixed weekly payment. Same formula banks and SBA lenders use.
Methodology
Standard amortization formula: P × r / (1 − (1 + r)−n), where r is the monthly rate (APR / 12) and n is the term in months. APR is the annual percentage rate as defined in the federal Truth in Lending Act (12 CFR § 1026.22). Actual lender quotes may include origination fees that increase APR.
Related questions
Yes — participating funding providers underwrite trailing 12-month averages, not just slow months. Northern contractors with strong May–October revenue still qualify in winter.
Related guides
Best Business Loans for Trucking Companies in 1970
Equipment financing, factoring, and working capital — the financing stack that keeps trucking companies cash-flow positive between fuel, payroll, and 30–60 day customer payments.
Best Business Loans for Restaurants in 1970
From MCAs to SBA 7(a), the financing options that fit restaurant cash flow — with realistic costs, approval thresholds, and pros/cons by product.
Documents Needed for a Business Loan (1970 Complete List)
The exact paperwork lenders ask for — and what you can skip — by product type.
Sources & references
- Current Employment Statistics (CES)— U.S. Bureau of Labor Statistics
- County Business Patterns— U.S. Census Bureau
- SBA 7(a) and 504 Loan Program data— U.S. Small Business Administration
- Bank Prime Loan Rate (DPRIME)— FRED · Federal Reserve Bank of St. Louis