Business Loans for Construction Contractors

• Fast & simple application process for construction contractors.
• Lines of credit and loans available for construction companies.

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Construction Business Loan Options

Construction companies and specific trade contractors have a constant need of capital by the nature of the construction industry. Getting money to help support cash flow for the business is essential when balancing multiple jobs. Many times you have to purchase supplies and make payroll before funds come in from clients. Even for a successful business, business loans have always been challenging to get from banks and/or credit unions due to the high-risk nature of the construction contracting business. AdvancePoint Capital can provide business loans to construction companies like yours, with attractive interest rates, and unique financing options, so you focus on running your business and making it grow. Experience our service that you won’t see at banks when looking for a construction loan.

What is a Construction Business Loan?

A construction contractor can secure a variety of products for funding the business from short term business loans to support supply, payroll or working capital to invoice factoring to get an advance on issued invoices to accelerate cash flow. Maybe your looking to expand the business and need long term financing such as an SBA loan. There are many options that may be available to construction companies depending on the need, the product and qualifications of the business.

How do Construction Business Loans Work?

Each business financing product has unique features, rates, terms, conditions and qualifications. Short term financing like short term loans or business cash advance range from 3 to 18 months to repay and are based on revenue. Long term business loans like SBA loans are typically 5 to 10 years to repay and up to 25 years with real estate, based on profit and loss and financials. A business line of credit allows you to draw funds on-demand unlike a term loan and invoice factoring for example, purchases invoices at time of issuance with no term.

So, as you can see, there is a variety of products and features to consider when figuring out which best suits the use and needs, let a loan the costs involved of acquiring construction business loans.

Construction Business Loan Options

Small Business Loans

Small Business Loans for Construction Company

A loan for the construction business provides a fixed rate, fixed term, and a fixed payment that is predictable and affordable. A small business loan is a term loan with attractive interest rates and repayment terms. Minimum annual revenue applies for a term loan.

  • Streamline fast, simple application process
  • Interest rates starting at 9%, Factor rates starting at 1.15%
  • Fixed terms with larger amounts

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Business Line of Credit

Construction Business Line of Credit

A credit line is a revolving line of credit up to a set credit limit that you can draw funds at will without having to contact the lender. Great product to supplement the business's cash flow and gain access to working capital on the fly. This is not a construction business loan but a flexible credit line. Pay interest only on the outstanding balance.

  • Interest rates starting at 1% per month
  • Flexible payments
  • draw up and draw down on line without the need to apply again

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Equipment Financing

Equipment Financing for Construction Business

There is a lot of costly equipment needed in the construction business. Having to ability to own and purchase equipment can save a lot of money in rental fees. Equipment loans and leases are excellent vehicles to buy new equipment and save money with a loan. Equipment financing is repaid in regular installments, typically monthly, with the term length depending on how long the lender anticipates the equipment will last.

  • Equipment financing with lease or loan
  • Repayment terms from 2 to 7 years
  • Equipment is used for collateral for approval

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SBA Loan

SBA Loans for Construction Company

The SBA administers and sets guidelines for the SBA loan program. This loan program allows a construction company to expand its business with a longer-term loan which provides for a higher loan amount at attractive loan terms with affordable interest rates and payments. A loan down payment and fixed assets may be needed for collateral. The Small Business Administration guarantees the lender recovery of a certain percentage of the loan to the approved lender to cover the default, which encourages lenders to lend. Your personal credit score must be good for SBA approval. SBA offers monthly payments available with a personal guarantee.

  • SBA 7(a) loan terms from 5 to 10 years, 25 years with real estate
  • Loan amounts up to $5,000,000
  • Considerable requirements for application

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Invoice Financing

Invoice Factoring or Financing

Construction companies invoice many clients. Invoice factoring allows construction business owners the opportunity to get an advance off of the invoice before the terms are paid, speeding up the time it takes to get paid.

  • Ability to get funded on the issuance of an invoice
  • Factor rates that starts at 1% based on face value of invoice
  • Quick application process, credit not required from invoice issuer

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Merchant Cash Advance

Merchant Cash Advance (MCA) for Contractors

When small business owners can't get approved for traditional construction business loans they turn to Merchant Cash Advance for their working capital needs. Allows for a lower personal credit score. This is not a construction loan, but an advance on future receivables.

  • Revenue based financing, not profit & loss
  • Flexible payments based on future sales
  • Same day application to funding

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AdvancePoint Capital makes the loan application process a simple, straightforward experience.

Pro's and Cons of Business funding for my Construction Company

A construction contractor needs to be careful when securing financing for the business. You need to balance the benefits verses the costs and look at the pro's and con's before you pull the trigger.


  • Make purchases when the business does not have capital on hand
  • Pay expected or unexpected expense
  • Maintaining capital reserves in the business bank account
  • Builds business credit


  • Debt is added to the businesses balance sheet
  • Debt payments can impact monthly cash flow
  • Impact potential of delinquency or default on business credit
  • Temptation of overleveraging business

Alternatives to Construction Business Loans

  • Credit Cards- Personal credit cards are often used by contractors to support daily expenses and purchases.
  • Personal Loans- Online personal lenders offer personal loans at competitive rates and terms.
  • Self-Funding- Owners at time prefer to lend money to there business at better terms than what they could find in business lending.
  • Investor Crowd funding- Sometimes the demand for capital is great and requires raising capital to achieve the necessary capital.

Types of Construction Companies We Serve

We offer construction financing to a wide range of small businesses within the industry. We provide construction business loans, lines of credit, and other construction business financing solutions that you can take advantage of today for a wide range of needs. Various types of construction companies that we serve include:

  • 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

Common uses and Benefits of Construction Business Funding

The construction business funding you acquire can be used for various business purposes including buying new equipment for your construction site or hiring manpower to make your life easier. The money can be used for purposes like:

  • Construction Equipment- Contractors have a lot of equipment needs with high cost items often requiring financing.
  • Working Capital Loans- Cash flow is a constant issue for construction contractors as they are balancing unreliable accounts receivable against mounting expense like payroll and supply.
  • Hire Workers/Retain Jobs- Recruitment of skilled labor can be challenging without the capital to hire.
  • Supply/Materials- Construction jobs require the necessary capital to purchase often times before you get paid for the job.
  • Increase business assets- Having capital reserves to take advantage of unexpected business opportunities can be a constant concern.
  • Commercial Construction Loan- Staged funding construction to permanent financing is a product used for renovations and rehabilitations.
  • General Business Purposes- There are a variety of purchases and expenses that come up in day to day operations of a construction business that would benefit with having a credit facility to support cash flow.

Get started today. We offer a wide range of construction loans and lines of credit options that you can take advantage of for your construction business — regardless of your credit score or history.

Finding the right funding solution can be difficult, but here at AdvancePoint Capital, we make it easy to get the funds you need.

Why AdvancePoint Capital?

Why AdvancePoint Capital?

Advancepoint has been finding business funding solutions for construction companies for years. Our lender network has a range of construction loans and other funding alternatives that can best suit the needs that work best. We offer a simple application process with a 1-page application and limited documentation needed to get offers and terms that are fully disclosed.

Your construction company will benefit from our professional experience within the industry and knowing what product will best solve your need whether it's working capital, equipment purchase, a need to buy supplies, or to make payroll. We make it easy to get loan offers with a fast approval process.

  • Experience in the Construction Industry– Over 10 years serving the needs of construction companies.
  • Trust – Top Google reviews, an A+ rating with the Better Business Bureau, and plenty of positive referrals.
  • Loan Specialists – Educated and knowledgeable business funding specialists who have experience in financing in the construction industry.
  • FREE Quotes- Quotes are provided before commitment at no cost
  • Products – Advancepoint's lender network has a variety of financing products for new businesses or existing businesses. We offer the best products in the industry.
  • Customer Service – We are responsive and always available during business hours.

Construction loans can be intimidating, but they don’t have to be. At AdvancePoint Capital, we can find a funding solution that works with your construction company instead of against it. Go to our website form, fill it out and apply and find out what your loan terms would be!

How to apply for a business loan for my Construction Business

Applying for business funding is dictated by the product you are applying for as business loans are different than, business line of credit and SBA loans. The following is the most common steps in the application process.

  1. Discover your need- The need often dictates the product you will apply for. Make sure you cover all current needs for capital.
  2. Find a Lender- Choose a lender that offers the best products and terms that match the need. Check reputation of lender and look at reviews.
  3. Product considerations- When you interview with the business loan originator consider what products and terms are available based on the contractors qualifications.
  4. Application- Fill out application and provide necessary documents to achieve a pre-approval.
  5. Offer(s)- Receive offers in writing with disclosures and/or term sheet which covers products, rates, costs and terms.
  6. Acceptance- Shop and compare offer(s) before you accept. Always consider all factors for your need and make sure you can afford the terms.
  7. Funding-When you select an offer, you will need to provide closing documentation, verifications and sign an agreement. Once underwriting clears closing conditions you typically fund by wire or ACH

Frequently Asked Questions