Construction
Construction Business Loans
Construction businesses get funding for payroll between draws, materials ahead of a job, and equipment. Because revenue arrives in lumps tied to project milestones, most banks read the cash flow as unstable — revenue-based funders do not, and typically fund in one to three business days.
What it pays for.
- Payroll between progress draws
- Materials for a job that has not been paid yet
- Excavators, skid steers and trucks
- Bonding and mobilisation costs
- Retainage held back after completion
It is usually the same reason a lender says yes.
Construction revenue arrives in lumps tied to milestones, so a bank reading twelve months of deposits sees instability. A revenue-based lender reads the same statements and sees a business that collects reliably, just not evenly.
Funding options for construction.
Merchant Cash Advance
A merchant cash advance gives a business a lump sum today in exchange for a fixed percentage of future sales. Approval is based on revenue rather than credit score, so businesses turned down by banks often still qualify. Funding typically lands in one to three business days.
Working Capital Loans
A working capital loan covers day-to-day operating costs — payroll, rent, inventory, payables — rather than a long-term investment. Terms usually run three to eighteen months, decisions come in hours rather than weeks, and most funders weigh recent revenue more heavily than credit history.
Equipment Financing
Equipment financing pays for machinery, vehicles or tools, with the equipment itself serving as the collateral. Because the loan is secured by the asset, approval odds are higher and rates are usually lower than unsecured funding — and many businesses qualify with limited credit history.
Business Line of Credit
A business line of credit is a revolving limit you draw against as needed, paying interest only on the amount drawn. It suits uneven cash flow and unexpected costs better than a lump-sum loan, and the limit replenishes as you repay.
Construction: questions owners ask.
- Can I get a construction loan with bad credit?
- Often yes. Revenue-based lenders underwrite construction on deposit history rather than credit score, and approvals in the 500s are common. Equipment financing improves the odds further because the machine itself secures the loan.
- How do contractors fund payroll between draws?
- Working capital or a merchant cash advance covers the gap. Repayment flexes with deposits, so a slow month between draws costs a smaller payment rather than a fixed one you cannot make.
- Can I finance used construction equipment?
- Usually. Most lenders finance used machines from a dealer or a private seller, though they may require an appraisal and will cap the term against the machine's remaining useful life.