Best Business Loans for Construction Contractors

Construction companies and specific trade contractors are always in need of capital due to the nature of their business and industry. Getting capital to help run the business is essential for cash flow to balance multiple jobs that are being worked on. Many times you have to purchase supply and meet payroll before funds come in from clients. Traditional banks have always made it difficult to get funding for the business.

AdvancePoint Capital can provide that working capital to construction companies like yours for cash flow, so you focus on running your business and make it grow.

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The 6 Best Business Loan Options for Construction Contractors:

 

Short Term Business Loans for Construction Companies

A short-term business loan is a financing option that provides a fixed amount of money, with a fixed cost that is paid back over a term from 6 to 18 months. This product is easier to acquire as the standards are easier for approval than traditional business loans.

Highlights of Short-Term Loans:

  • Allows for substandard business credit with good and bad credit accepted
  • Low monthly or annual revenue requirements
  • Easy Process, Same day to next day business funding available

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Business Line of Credit for Construction Companies

A business line of credit has the flexibility that a short term loan does not. It operates more like a credit card in that it operates as a revolving line of credit and allows you to draw money out as needed, and you only pay principal and interest on your outstanding balance.

Highlights of Business Line of Credit:

  • Flexibly of drawing money out when you need it
  • Only required to pay interest on the outstanding principal balance
  • Lower costs and fees than that of short-term loans

Equipment Loans for Construction Companies

Equipment financing is used to purchase specific equipment that is put up as collateral as you would when purchasing a truck or automobile. Equipment financing is usually structured as a lease to purchase or fixed-term loans.

Highlights of Equipment Financing:

  • Minimal paperwork require
  • Instant funding
  • Repayment terms from 1 to 5 years
  • Affordable monthly payments

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SBA (Small Business Administration) Loans for Construction Companies

An SBA loan, short for Small Business Administration loan, is a loan guaranteed by the Small Business Administration. SBA is not the lender. This program provides long-term, fixed-interest rate financing at very attractive interest rates and terms. This product is highly desirable, but the process is lengthy, with a lot of paperwork requirements and high credit standards.

Highlights of Equipment Financing:

  • Low-Interest Rates
  • Repayment terms from 1 to 25 years
  • Affordable monthly payments
  • Can use the money for various needs of a business

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Invoice Factoring / Financing for Construction Companies

Invoice financing, also known as invoice factoring, allows the construction company to leverage outstanding invoices and receive advances off those invoices in a day ahead of the “net” terms of 30, 60, or 90 days the invoices normally take to get paid. This is a great way to get cash flow fast off of work that has been completed but not paid for yet. The product is geared towards business to business only, so unless you have other businesses you invoice, this product won’t be available if your customers are consumers.

Highlights of Invoice Financing:

  • Lightning-fast access to capital
  • Credit requirements based on your customer, not your business
  • No limitations on use of funds
  • No payments, no long term debt obligations

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Business Credit Cards

A business credit card is a small plastic card that is issued to a business owner by a financial institution allowing the holder to use the card to purchase or pay for items on demand instantly offline and online. The card operates as a revolving credit line that has a credit limit and charges principal and interest on the balance of the account on a monthly basis. This is a prevalent choice as the card is flexible in repayment with lower monthly payments than business loans.

Highlights of Business Credit Cards:

  • Principal & Interest
  • No prepayment penalties
  • No limitations on use of funds
  • Low monthly minimum payments

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Benefits of Constructruction Business Loans

Cash Flow

One of the great challenges of construction businesses is cash flow. Most projects the construction companies and specific trade contractors take on have completion dates and time frames that can fluctuate with delays in and out of their control, causing cash flow unpredictability. Business Loans solve that problem by filling short term issues like customer payment delays, supply and equipment purchases, payroll, and general operating expenses.

Owning Your Own Equipment

Equipment financing allows construction contractors to own their equipment saving money long term on renting equipment for jobs there working on, therefore making higher margins of profit on work.

Marketing and Advertising

Many contractors need advertising to maintain or grow their customer base. Business loans allow companies to design and optimize their websites on the internet for greater exposure. Other internet methods to acquire customers include Pay per Click Advertising, SEO, and buying leads. Traditional methods like radio, newspaper, and signage may also help grow the business. 

Hire Employees and Managing a Growing Team

Hiring a great team is the lifeblood of a construction business. Recruiting can cost a business a lot of money because the workflow is not as steady as other businesses. Salaries and signing bonuses can really burden a business without business financing in place to sure up any short term cash flow issues.

Making Payroll

As a business grows, payroll will grow into something that must be managed and maintained with zero tolerance for cash flow shortages. Unexpected issues related to construction company receivables can put a business in a position they can’t afford to be in, which is missing a payroll.
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Types of Construction Companies We Serve:

    • General Contractors
    • Plumbing Contractors
    • Electrical Contractors
    • Home Improvement/Remodelers
    • Landscaping Contractors
    • HVAC Contractors
    • Residential House Builder
    • Commercial Building Contractors
    • Construction Manager
    • Sub-Contractors
    • Demolition Contractors
    • Property Maintenance Contractors

Why AdvancePoint Capital?

  • Experience- with Construction Industry. We have been funding construction businesses for years.
  • Trust-Excellent reviews and feedback from Construction Companies 
  • Loan Specialists –Experiences Business funding specialists who know the construction industry.
  • No cost, no commitment quotes
  • Products – A Variety of Construction Business Loan Products. We don’t just offer what we have; we offer what’s available in the marketplace.

Start to Grow Your Construction Business Now!

The fast, convenient and straightforward way to get the money you need for your business – now! Get Your Quote Today by filling out our simple form.

* All loans made by either WebBank, an FDIC-insured Utah industrial bank, or Bank of the Internet Federal Bank, an FDIC-insured federally chartered thrift located in California. In connection with the loans, the Banks' underwriting conditions and terms apply.