Key Takeaways
- Average loan size: $285K
- Approval rate: 78% for qualified applicants
- Typical funding timeline: 7-14 Days
- Average borrower revenue: $1.2M
- Check your Bankability Score to see personalized options
A construction business loan is a capital product designed for contractors, builders, and construction companies that need to bridge the gap between project costs and client payments. The construction industry operates on long payment cycles—often 60 to 120 days between mobilization and final payment—which creates chronic cash flow pressure that can sink even profitable firms. Bankable specializes in matching construction businesses with lenders who understand progress billing, retainage, and the seasonal nature of the trade.
Industry Challenges
- Cash flow gaps of 60-120 days between project start and final payment
- Seasonal revenue fluctuations that make traditional underwriting difficult
- High equipment costs requiring $100K+ capital outlays before revenue arrives
- Bonding requirements that tie up capital and limit bidding capacity
- Retainage holdbacks (5-10%) that compress already thin margins
- Rising material costs that erode profit on fixed-price contracts
Funding Solutions
- SBA 7(a) Loans: Government-backed with rates as low as Prime + 2.75%. Ideal for established contractors seeking expansion capital or equipment.
- Equipment Financing: Fund excavators, cranes, trucks, and tools with the equipment itself as collateral. Up to 100% financing available.
- Business Lines of Credit: Revolving capital from $50K-$500K to cover payroll, materials, and mobilization costs between draws.
- Invoice Factoring: Convert outstanding invoices and progress billings into immediate cash at 1-3% discount rates.
- Surety Bond Financing: Specialized programs to increase your bonding capacity without tying up working capital.
Capital Products
Related Industries
Trucking Business Loans
Trucking and logistics business loans from $25K to $1.5M. Owner-operator financing, fleet expansion, and working capital...
Explore →Restaurant Business Loans
Restaurant loans from $25K to $750K. Kitchen equipment financing, working capital, and expansion funding for restaurants...
Explore →Medical Practice Loans
Medical practice loans from $50K to $2M. Practice acquisition, equipment financing, and expansion capital for physicians...
Explore →Frequently Asked Questions
Most construction lenders require a minimum 620 personal credit score for term loans. However, revenue-based products like MCAs and invoice factoring can work with scores as low as 550 if your business generates consistent revenue above $200K annually.
Yes. Equipment financing is available for businesses with as little as 6 months of operating history because the equipment serves as collateral. Revenue-based products are also available for newer contractors with strong monthly deposits.
The equipment you're purchasing serves as collateral for the loan. This means lower rates (6-15% APR), higher approval rates, and no additional collateral required. Terms typically run 3-7 years depending on the equipment's useful life.
Most lenders require 3 months of bank statements, a current project backlog or pipeline, your business license and insurance certificates, and personal identification. SBA loans additionally require 2 years of tax returns and a personal financial statement.
Equipment financing and lines of credit can fund in 3-7 business days. SBA loans take 30-60 days. Revenue-based working capital can fund in as little as 24-48 hours for urgent project needs.