Specializing In Construction Business Loans for Contractors & Builders
Find the best business loans for construction companies and contractors.
No personal guarantee & no collateral required.*
Get funded within a few business days.
Simple & Easy
Past credit issues MAY not be a problem.
Within 24 hours of application.
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Paul F. Harrison
Bernadette & Blake
Intro to Small Business Loans for Construction Companies
Construction projects don’t always go as planned for small business owners. Additional expenses can arise, like the need to purchase equipment or supplies. A host of circumstances – from new investors to county codes to inclement weather – can delay the project’s start date. As if this didn’t put enough pressure on cash flow, contractors in the construction industry often do not get paid until they reach certain project stages.
US Capital has access to business loans for construction companies and contractors to obtain the business credit they may need to complete projects on time while covering operational expenses in the interim.
In this guide, we’ll answer the following questions and more:
- What Are Construction Business Loans?
- How Do Business Loans For Construction Companies Work?
- What Are The Advantages of Business Loans For Construction Companies?
- What Are The Disadvantages of Business Loans For Construction Companies?
- How Do You Apply For Construction Business Loans?
- What If I’m Declined For a Construction Business Loan?
- Why Do Construction Companies & Contractors Need Financing?
- How Do Contractors Finance Construction Projects?
- How Long Can You Finance Construction Equipment?
- Can I Get a Construction Business Loan With Bad Credit?
We have access to various business loan options for the construction industry that have proven to work for our clients. Take advantage today.
What are Construction Business Loans?
Construction business loans are small business loans geared towards the cash flow cycles and construction contractors’ periodic expenses. In addition to covering shorter-term needs and larger purchases, these small business loans can bridge revenue gaps until compensation comes in.
Small business loans for a construction company can take the form of:
- SBA Loans
- Equipment Financing
- Business Line of Credit
- Working Capital Loans
- Merchant Cash Advance
- Revenue-Based Business Loan
- Accounts Receivable Factoring
How Do Business Loans for Construction Companies Work?
Each of the products listed above can suit a different type of expense or cash flow issue. For example, let’s say a business owner needs a little extra money to purchase more supplies, new equipment or cover payroll until the next phase of the project is complete. Logical solutions to these construction company dilemmas include a short-term working capital loan or business lines of credit.
The decision typically depends on how long it will take you to repay the loan amount, as well as the likelihood of needing a construction loan again soon. Sudden expenses and cash flow shortages are prevalent with construction businesses. Thus, a business construction line of credit would prevent you from having to apply for more funding every time you’re unable to cover a short-term expense.
Maybe you’ve just completed a project, and you’re looking to ramp up for your next one. However, compensation isn’t scheduled to come in for a few weeks. In this case, it might help to consider accounts receivable factoring. The small business loan provider purchases the account for a discount price and then assumes the responsibility of collecting from your customer. Once the payment is collected, you receive the remainder from the initial sale, minus fees.
It’s important to note that construction loans can be designed to solve multiple problems. You might need to hire more workers, pay vendors upfront, or obtain special permits for the same project. We can tailor your loan amount and terms to accommodate each expense of your contracting business, even if they occur at different intervals.
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