Construction & Contractors business loans
Construction businesses access lines of credit for materials, equipment financing for heavy machinery, and working capital to cover payroll between draws — with progress-payment-friendly underwriting.
Industry overview
Construction is one of the most capital-intensive industries in North America. Material costs swing weekly, payroll is due before draws clear, and equipment runs $50k to $500k+ per unit. The Bureau of Labor Statistics tracks more than 750,000 US construction firms employing 8 million people.
A revolving line of credit is the workhorse: draw on Monday for that week's lumber and labor, repay when the GC funds your draw, repeat. Combined with equipment financing for skid steers, excavators, lifts, and trucks, contractors can scale crews without ever waiting on a bank.
Construction-specific underwriting accommodates progress-billing AR, retainage holdbacks, and seasonal slowdowns — things conventional banks struggle to model.
Common funding needs
- Material cost spikes
- Payroll between progress draws
- Heavy equipment purchases
- Bonding capacity
GCs and trades fund equipment, materials, and payroll with lines of credit and equipment financing tailored to construction draw schedules.
Pros
- Lines of credit flex with draw schedules — pay interest only on what you use
- Equipment financing preserves cash for bid bonds and bonding capacity
- Invoice/progress-billing factoring smooths retainage holdback gaps
- Section 179 / bonus depreciation on financed equipment
Cons
- Bonded jobs may restrict subordination — confirm UCC compatibility before funding
- Seasonal slowdowns can compress monthly deposits and affect renewal pricing
- Stacking equipment debt without matching revenue creates fixed-cost drag
Common mistakes to avoid
Underestimating retainage drag
Standard 5–10% retainage on commercial work means you're effectively financing the GC for 60–90 days after substantial completion. Plan working capital accordingly.
Buying equipment on a credit card
Cards charge 22–29% APR. Equipment financing at 9–14% APR with 5–7 year terms preserves margin and improves business credit.
Mixing personal and business funds
Lenders underwrite from business bank statements. Co-mingled accounts dilute deposits and reduce approved loan size.
Real-world scenarios
$75k LOC for materials and payroll
A residential remodeler used a revolving LOC to bridge between draws on a kitchen-and-bath project, drawing $25k three times and repaying as draws cleared.
$220k excavator at 100% financing
A site-prep contractor financed a CAT 320 with $0 down on a 60-month term, qualifying via 24 months of bank deposits.
Illustrative scenarios based on common deal structures. Actual terms vary by underwriting.
Lead-gen pre-check
See if your construction & contractors business qualifies
Free pre-qualification. No credit pull. No signup required.
Free pre-check
Eligibility checker
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Underwriting disclaimer: The eligibility checker is a self-reported pre-qualification tool. It does not constitute an offer of credit or a guarantee of approval. Every funded file goes through full underwriting — including bank statement analysis, business verification, and a credit inquiry whose type (soft or hard) is disclosed before you sign. Final terms, rates, and amounts depend on underwriting and the specific lender or program.
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Funding products
Business Line of Credit
Revolving capital you can draw on demand
- Amount
- $10,000 – $1,000,000
- Speed
- Approved in 1–3 days
Equipment Financing
Up to 100% financing for the gear you need
- Amount
- $10,000 – $5,000,000
- Speed
- Funded in 3–7 days
Working Capital Loans
Cover payroll, inventory, and day-to-day expenses
- Amount
- $5,000 – $1,000,000
- Speed
- Funded in 24 hours
Invoice Factoring
Turn unpaid invoices into immediate cash
- Amount
- $10,000 – $10,000,000
- Speed
- Funded same day
Top states for construction & contractors
- Construction & Contractors in Texas3-month statements · TX
- Construction & Contractors in Florida3-month statements · FL
- Construction & Contractors in California4-month statements · CA
- Construction & Contractors in Arizona3-month statements · AZ
- Construction & Contractors in North Carolina3-month statements · NC
All states & provinces — construction & contractors
Industry-specific construction & contractors financing pages for every state and province we fund.
FAQs — Construction & Contractors
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Get funded in as little as 24 hours
$5,000 to $25,000,000. Free pre-qualification. No upfront fees. Same-day decisions for clean files.