Construction business loans

Running a construction company means meeting deadlines, keeping equipment operational, tracking progress, and bidding for the next project. You don’t have time to research which financial providers have the best rates or to wait for lengthy approvals from large banks. That’s where we come in.

Our partners specialize in getting construction companies the business loans they need, from equipment financing to business bridge loans, so you can land your next project, repair equipment, pay workers during weather disruptions, and buy materials without having a delay.

A construction business loan, also known as commercial construction financing, is a type of short-term business loan designed to help construction companies finance projects and fill cash flow gaps. Unlike a traditional corporate construction loan, which a company takes to build a new location or replace their roof or an HVAC system, construction business loans are for the construction company to purchase materials and supplies, pay their workers, and fund projects.

In addition to funding the project, the financing can be used to repair machinery that breaks down and to cover financial obligations when clients are late paying or during unexpected disruptions.

Your business has unique challenges, so your projects may require a customized financing solution. Being familiar with the types of loans construction business owners use helps you know the right one to apply for.

Short-term business loan

If your business needs cash to cover an unexpected incident, like materials getting damaged, or to cover the cost of operations, like renting a piece of machinery, a short-term business loan can keep your business up and running. Short-term business loans are temporary financing solutions with repayment terms lasting one year or less.

Working capital loan

This type of financing is designed to cover everyday expenses, like payroll, gas, utilities, and hiring a technician, rather than long-term assets or planning. Working capital loans provide much-needed capital for your business to keep cash flow strong, while making sure all your short-term and immediate expenses are covered.

Heavy equipment financing loan

Equipment financing provides a solution for businesses that need to cover the cost of an equipment upgrade, replacement, or repair. Heavy construction equipment financing can be used for most types of equipment including bulldozers, backhoes, trenchers, hoists, or pipe cutters. Virtually any type of new or pre-owned equipment qualifies, so you can secure the crucial equipment that you need to complete any project.

These three loan types are the most common, but a construction business loan can be customized to meet your business needs. Click here to get started and we’ll match you with the best financing solutions based on your profile.

Commercial construction loans are designed for you to be able to finance your operations, whether it’s an unforeseen emergency, purchasing supplies for a new project, or upgrading equipment as your company grows and your needs change.
Commercial construction financing has multiple purposes.

• Provides capital to purchase construction equipment: If your heavy equipment breaks down, construction loans cover the cost of renting temporary replacements and fixing the machinery to keep your business running with minimal outage time.  
• Ensures inventory supplies are stocked and readily available: Commercial construction financing lets you stock up on concrete, steel beams, and other building materials when cashflow is tight, or until the full payment is made after project completion. 
• Helps hiring skilled tradespeople: The funding can be used to grow your workforce by hiring skilled personnel in your team or temporary specialists for specific project needs.  
• Preserves cash flow: By funding emergency business expenses through commercial construction loans, your company can safeguard its working capital for covering the critical day-to-day operations. It’s perfect for filling a gap while you’re waiting for accounts receivable but need to replace damaged supplies mid-project and make payroll. 
• Helps market your business: From establishing a brand image to winning new construction projects, businesses can gain a lot from marketing campaigns. Construction company financing can be used to cover marketing, advertising, and promotions year-round, or as you ramp up for the busy season. 
• Supports business expansions: With access to additional capital, your company can be prepared to scale when sudden spikes in construction demand occur. The loan amount can also be used to acquire other small construction companies, increase staff, and purchase more equipment, easing the financial strain on growth. 

There’s no shortage of benefits when it comes to getting a construction company loan, and these are only a few of the reasons why business owners like you rely on this type of financing to maintain their operations, grow, and stay successful.

The requirements to qualify for commercial construction financing vary by lender/provider. Traditional lenders, credit unions, government agencies, and alternative online lenders are all going to have certain minimum requirements that applicants need to meet to get funded. These may include a minimum amount of time in business (i.e., six months to a year), a minimum amount in annual sales, and an established credit score (from poor to excellent).

Regardless of the amount of time you’ve been in business, your annual revenue, and your FICO score, SmallBusinessLoans has solutions for you through our extensive network of trusted partners. Click here to see your matches now.