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.
For construction
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
- Won't affect your credit
- Free, no obligation
- Up to $500K
Why the bank said no
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.
Why do banks turn down construction businesses for loans? →Funding options
Funding options for construction.
The right product depends on what the money is for. One application here goes to the lenders in our network that fund construction businesses in your state; they decide, typically within 24 hours, and funds can land in as little as 72 hours.
| What you need it for | What usually fits | Why |
|---|---|---|
| Payroll between progress draws | Working capital loan | Underwritten on deposits, with weekly repayment that suits money arriving with draws. |
| Materials for a job that has not been paid yet | Working capital loan | Repaid out of the job it pays for, inside a short term. |
| Excavators, skid steers and trucks | Equipment financing | The machine secures its own financing, so it prices close to a bank. |
| Bonding and mobilisation costs | Working capital loan, for mobilisation only | It counts against bonding capacity, so the bond itself is a bank conversation; use it only after the bond is written. |
| Retainage held back after completion | Business line of credit | A gap that recurs on every job; draw it and repay when the retainage lands. |
How does each kind of funding work for construction?
Checked by Alex Makowski.
Two things decide how each product behaves in a trade: how the money comes in, and whether the need comes back. An advance repaid as a share of card sales falls in a slow week; one repaid by a fixed daily or weekly debit against deposits does not. Equipment secures its own financing, so it costs less than unsecured money. A line costs interest only on what is drawn, for the days it is drawn, and is the hardest of the four to open, usually needing a year or two of trading and clean statements. A working capital loan has fixed repayment, so size it to your slowest month.
Merchant Cash Advance for construction
Most construction revenue arrives by check or ACH from a general contractor or an owner, not at a card terminal, so an advance here is almost always repaid by a fixed daily or weekly debit against your deposits rather than a share of card sales. That debit does not wait for a late draw. Read the reconciliation clause before you sign, and keep an advance for a short gap, never a whole project.
Working Capital Loans for construction
The usual fit for payroll and materials between progress draws. Ask for weekly repayment, which lines up with how general contractors and owners pay far better than a daily debit. Size it to the gap between this draw and the next, not to the contract value: a funder underwrites your deposits, and a pay application nobody has approved yet is not a deposit.
Equipment Financing for construction
Excavators, skid steers, dump trucks and trailers are what equipment lenders know best, because they hold value and resell. Used machines from a dealer or a private seller finance routinely, sometimes after an appraisal. A machine bought for one job should keep working after it; if it would sit in the yard, renting it for the job may come out cheaper.
Business Line of Credit for construction
Retainage is the case for a line. A share of every contract is held back until completion and released weeks or months later, on every job. Draw against that gap and pay it down when the retainage is released. Open the line before a big job rather than in the middle of one, while the deposits from the last job still show.
What your deposits support
Before you apply
What to have ready before you apply.
- Six months of business bank statements, as PDFs from the bank rather than screenshots.
- Your current contract schedule — what is signed, what is in progress, what is invoiced but unpaid. It is the single strongest thing a contractor can put in front of an underwriter.
- Any outstanding advances. Stacking is visible in your statements and is the fastest route to a decline.
FAQ
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.
Construction funding by state
Guides
Guides on this
Why do banks turn down construction businesses for loans?
Because construction revenue arrives in lumps tied to progress draws, and a bank's model reads uneven deposits as instability. Revenue-based funders read the same statements and see a business that collects reliably but not evenly. Approval usually rests on deposit history rather than collateral, and funding lands in one to three business days.
Your work van is dead and the bank wants a month. What replaces it this week?
A replacement van is financed as equipment: the vehicle secures the loan, so approval rests on the van and your deposits rather than two years of tax returns, and funding takes two to five business days. A rental to keep jobs moving, and a major repair if you keep the old van, are working capital — funded in one to three days on your deposit history.
You are waiting on a $60,000 draw and payroll is next week. What bridges it?
A short-term working capital loan or a cash advance, funded in one to three business days against your deposit history rather than against the draw itself. Contractors are the most common user of this product for exactly this reason. Size it to the payroll and the materials, not the draw, and ask for weekly payments that stop being painful the day the draw clears.
One application, every lender we work with
Find out what you qualify for before you need it.
Eleven questions, about two minutes. You see offers side by side and take one, or none.
- Won't affect your credit
- Free, no obligation
- Decisions usually inside 24 hours
- Up to $500K