Construction business loans that keep your projects moving
Payroll, materials and mobilization go out long before a draw clears — and retainage holds the rest for months. Financing bridges that gap.
No hard credit pull to see your options
Not sure which financing fits?
Speed varies by product. Working capital and lines of credit can fund within a day; SBA loans take 30–90 days.
No hard credit pulls
See what you qualify for without touching your credit score.
Keep the job moving
A fast decision when payroll, materials, or equipment can’t wait.
Guidance beyond the application
An advisor compares lenders and explains tradeoffs before you choose.
Why construction cash flow is different
You fund the job before you're paid for it — and the payment, when it finally comes, is smaller than the work you did.
- You front the cost, and you set the size of the gap. Payroll, materials, and mobilization go out before there's a percentage complete to bill against — and how wide that gap runs is set by the schedule of values you wrote at bid, not just by how fast the GC pays.
- Retainage doesn't taper as the job winds down. It comes off every draw at the same rate, so late in a job you're still financing withheld profit on work you finished months earlier — and paperwork can hold the release well past the day the crew leaves.
- Pay-when-paid and pay-if-paid aren't the same clause. One only delays your payment until the GC collects from the owner. The other can shift the risk of nonpayment onto you entirely, depending on how it's written and which state's law governs the contract.
- Overhead doesn't pause when a job does. Bonding capacity, equipment notes, insurance, and the crew you need for the next bid all run on a calendar, not a job schedule — a slow bid cycle or a stretch of bad weather just widens the gap for as long as it lasts.
None of that is a problem to fix — it's the industry's payment architecture, the same on every job no matter how well it's run. A profitable contractor can still be short on cash at exactly the moment growth is possible, because the money is real but not yet in the account.
Architecture like that produces the same handful of pressure points on almost every contractor's books. Four of them show up most often — and each one has a different right answer.
Four binds that put contractors in a cash squeeze
The timeline above creates the same handful of pressure points across every trade. Each one has a different right answer — matching them correctly is most of the job.
Payroll runs weekly. Draws don't.
Crews and subs get paid on a set cycle regardless of where the pay application sits. On prevailing-wage work, certified payroll adds a fixed administrative clock you can't stretch.
A working capital loan — a lump sum sized to cover the payroll cycle, repaid on a fixed schedule as draws land.
Mobilization costs hit before the first billing.
Deposits, permits, material orders, and equipment moves all come due before there's a percentage complete to bill against — and the amount differs on every job.
A business line of credit — draw per job, pay interest only on what's used, and free the capacity back up as each project bills.
Your profit is sitting in receivables and retainage.
Approved pay applications and released retainage are money you've already earned. Until they clear, that capital can't fund the next mobilization or bid.
Invoice factoring — advances most of an approved invoice's value now, so you stop financing your customers' payment terms.
Winter, weather, and bid cycles stall revenue — overhead doesn't.
Shutdowns and permitting delays push revenue into bursts while equipment notes, insurance, bonding, and key staff stay on the books year-round.
A working capital loan to bridge a defined slow stretch, or a line of credit held in reserve and tapped only when needed.
One caution before you choose: the wrong instrument is expensive. Short-term working capital used to buy a ten-year machine costs far more than equipment financing; a factoring arrangement solves nothing if the receivable isn't approved yet. The next section maps situations to the option that actually fits — or see what your business qualifies for and let an advisor narrow it down with you.
Which financing is right for your situation?
There's no single best option — only the one that fits what's in front of you. Find the situation that sounds like yours, and see what a Fundur advisor would likely point you toward, and why.
"Payroll is Friday. The draw clears in three weeks."
Working Capital Loan
Covers the everyday operating costs now, repaid on a fixed schedule over a defined term.
Explore working capital loans"Every new job needs materials and mobilization up front."
Business Line of Credit
Reusable capacity you draw against as you need it and repay — interest only on what you use.
Explore lines of credit"The excavator is down and the schedule can't wait."
Equipment Financing
Spreads the cost over the asset's working life, and the equipment itself usually serves as the collateral.
Explore equipment financing"I'm carrying approved invoices and held retainage."
Invoice Factoring
Turns receivables you've already earned into working cash instead of waiting out the payment cycle.
Explore invoice factoring"I'm bidding a job bigger than anything we've run."
Business Term Loan
A defined lump sum for a large, planned commitment, repaid in predictable fixed installments.
Explore term loans"We're buying a yard, a shop, or a second crew's worth of iron."
SBA Loan
Longer terms and lower rates spread a major investment across the years it actually earns.
Explore SBA loansWhat business financing costs — and how to compare offers
Pricing varies by lender, product, and your business profile, so any page quoting you a single rate is guessing. What you can control is knowing how offers are priced and insisting they're presented the same way.
Interest rate vs. factor rate
An interest rate is charged on a shrinking balance, so paying down early reduces what you owe. A factor rate is a multiplier fixed at signing — a 1.25 factor on $100,000 means $125,000 repaid whether you take the full term or not. Ask which one you're being quoted before anything else.
What moves your pricing
Time in business, monthly revenue and its consistency, credit profile, the amount requested, and whether the financing is secured. Equipment financing typically prices best because the machine itself is collateral; fast unsecured working capital typically prices highest.
Fees worth asking about
Origination fees (commonly 1%–5%), and the prepayment terms. On interest-based financing, paying early should save money; on factor-rate financing it often won't unless the lender offers an early-payoff discount. Payment frequency matters too — daily or weekly drafts pull cash faster than monthly.
Match the term to the asset
The most expensive mistake isn't a high rate — it's a mismatch. Repaying a ten-year machine over nine months strains cash flow no matter how good the rate looks. Short-term money belongs against short-term gaps you'll repay from an identified draw.
The one habit that protects you: insist on two numbers in writing from every lender — the total dollars you will repay and the APR — and compare offers only on those. Never on the factor rate or the monthly payment alone. It's also how Fundur presents every offer, so the comparison is honest from the start.
Rates, factor rates, and fees vary by lender and business. Your actual terms are disclosed in full before you accept anything.
Tell us about the job. We'll find the fit.
Most owners end up using more than one — a line of credit for one need, equipment financing for another. An advisor compares your real options across multiple lenders and tells you plainly when borrowing isn't the right move. Checking won't affect your credit.
How construction companies put financing to work
Used well, financing isn't a distress signal — it's how contractors take the job they'd otherwise pass on. Three situations that show up constantly, with the math behind them.
Replacing a machine mid-schedule
A skid steer fails two weeks into a site package. Renting a replacement runs roughly $3,200 a month with no equity at the end, and the schedule can't absorb downtime. Equipment financing buys the machine outright over its working life while cash reserves stay available for payroll and the next mobilization.
Taking a contract twice your usual size
A tenant-improvement package is triple the company's typical job. Gear and switchboard deposits are due at order, with a long lead time before the first pay application can even be submitted. A line of credit funds the material buy, then gets repaid as draws are approved — leaving the capacity open for the next project.
Carrying fixed costs through the winter stall
Pours stop for roughly ten weeks, but equipment notes, insurance, bonding, and three key foremen stay on the books. Losing that crew means rehiring and retraining in spring at a premium. A working capital loan covers the stretch and is repaid once the season restarts.
Figures are illustrative examples, not offers. The pattern holds, though: in each case the financing is sized to a specific, identifiable gap with a clear repayment source — which is exactly what a lender is looking for, too.
From application to funded, in three steps
Most of the process happens in minutes, and many construction businesses are funded within a day — without pulling anyone off the job to chase paperwork.
Tell us about the work
Time in business, monthly revenue, your trade, and what the money is for. Checking your options uses a soft credit pull, so your score isn't affected.
About 5 minutesCompare offers with an advisor
See what you qualify for side by side. A dedicated advisor walks through total cost and repayment against your draw schedule — and says so if borrowing isn't the right call.
Same dayGet funded
Accept the offer that works and funds are deposited to your business account — often the same or next business day, so the schedule never slips.
As fast as 24 hrsHave three to six months of business bank statements ready and keep your legal business name consistent across your application, statements, and W-9. Incomplete or mismatched paperwork is the single most common cause of delay. Speed also varies by product: working capital and lines of credit can fund within a day, while SBA loans take 30–90 days and invoice factoring takes a few days to set up before advances begin.
Do you qualify?
Lenders set their own standards, but most weigh the same core signals. Because approval leans on revenue and cash flow rather than perfect credit, many construction businesses qualify on the strength of their deposits and backlog alone.
Typical signals only — exact thresholds vary by lender and borrower. These are the minimums to see what you qualify for; requirements vary by product, and SBA loans and term loans generally ask for more time in business and a stronger credit profile.
What you'll need to apply
- 3–6 months of business bank statements — the primary way revenue is verified.
- Basic business details — legal entity name, EIN, trade, and time in business.
- Government ID and a voided check — typically required at funding, not to apply.
- For larger requests: business tax returns or a simple profit-and-loss statement.
What lenders look at in construction
- Signed backlog. Contracts already awarded show where repayment comes from.
- Customer concentration. Depending on one GC for most revenue reads as risk.
- Deposit consistency. Lumpy draw-based revenue is normal here — steady patterns matter more than a smooth line.
- AR aging and retainage. What's owed, by whom, and how long it's been outstanding.
Construction business loan FAQs
How do I qualify for a construction business loan?
Most lenders look for steady monthly revenue (often $10,000+), at least six months in business, and a US business bank account. Recent bank statements matter most; signed backlog and a clean AR aging report strengthen the file, since they show where repayment will come from.
What credit score do I need for construction financing?
Many options start around a 500 credit score. Stronger credit unlocks better pricing and larger amounts, but because approval weighs revenue and cash flow heavily, contractors with fair or rebuilding credit routinely qualify.
How much can I borrow for my construction business?
Amounts typically range from $10,000 up to $5 million depending on revenue, time in business, and the financing type. Equipment financing and larger term loans reach the upper end; working capital is usually sized against monthly deposits.
Can I get financing to cover payroll between draws?
Yes — that's the core use case. A working capital loan or line of credit covers crews, subcontractors, and overhead while a pay application works through approval, then is repaid as draws land.
Can I finance retainage or unpaid progress invoices?
Invoice factoring advances most of an approved invoice's value so you're not waiting 30–90 days. Retainage is harder to factor directly because it isn't payable until closeout, so many contractors bridge it with working capital or a line of credit instead. An advisor can tell you which applies to your receivables.
Does financing help with bonding capacity?
Indirectly. Sureties evaluate working capital and balance-sheet strength when setting your bonding limit, so how you finance matters — adding short-term debt can affect the ratios a surety reviews. Financing premiums or strengthening working capital ahead of a bond review is common; coordinate with your surety and CPA before a large program.
Can I get construction financing with bad credit?
Often, yes. If revenue and cash flow are healthy, many lenders will still approve — typically at a higher rate or smaller amount. Consistent deposits and on-time payments improve your terms over time.
How fast can I get funded?
Many construction businesses get a decision the same day and funding as fast as 24 hours. Speed depends on the lender, the product, and how quickly you provide documents — complete, consistent paperwork is the biggest accelerator.
Do I need collateral for a construction business loan?
Many working capital loans and lines of credit are unsecured, though a personal guarantee or general lien on business assets is common. Equipment financing is typically secured by the equipment itself, which is part of why it prices well.
What's the difference between a term loan and a line of credit for construction?
A term loan is one lump sum on a fixed schedule — good for a large, defined cost. A line of credit is reusable: draw per job, repay, draw again. Contractors with rolling mobilization costs usually favor the line; a single large commitment favors the term loan.
Is equipment financing better than using working capital to buy a machine?
Usually, yes. Short-term working capital repaid over months against an asset that earns for years creates a mismatch that strains cash flow. Equipment financing matches the repayment term to the machine's useful life and is generally cheaper because the equipment secures it.
Can general contractors and subcontractors both qualify?
Yes. The underwriting emphasis differs — subcontractors are further down the payment chain, so lenders pay closer attention to who the GC is and to customer concentration, while GCs are often evaluated on project size and backlog.
Can I use financing for an SBA-eligible expansion?
Yes — SBA loans suit long-term investments like buying a yard or shop, major fleet expansion, or acquisition, with longer terms and lower rates. They take longer to close than short-term options, so plan ahead rather than using them for an urgent gap.
Are interest payments on construction financing tax deductible?
Interest on business financing is often deductible when funds are used for business purposes, but rules vary by structure and situation. Confirm with your CPA — particularly on equipment, where depreciation treatment may also apply.
Financing for related trades
A few things worth knowing
No surprises, no pressure — just what matters when you're deciding whether to move forward.
Check your options without affecting your credit score.
Most applicants know where they stand within hours, not weeks.
We compare offers across our network so you don't have to apply everywhere yourself.
If borrowing isn't the right move, your advisor says so — before you apply, not after.
Tell us about the job. We'll find the financing that fits.
See the construction financing options you qualify for in minutes — a soft credit check to start, and no obligation to accept an offer.
Fundur is a financing marketplace, not a lender. Fundur does not make credit decisions or guarantee approval, rates, terms, or funding times. A dedicated funding advisor can walk you through any option you receive. Final terms depend on lender approval.