Construction Business Loans and Financing for Contractors
Working capital for the wait after a pay application, with equipment financing and term loans beside it.
Soft credit pull only, no obligation
- Same-day decisions
- from some providers
- Subject to provider approval and document turnaround.
- 700+
- industries served
- Reviews
- Work finished
- Pay application in
- Cash lands
Weeks later
Bridged by working capital financing for construction companies and contractors
Rates, factor rates, fees and terms are set by the funding provider that makes your offer and are disclosed in that provider's agreement. Figures on this page are illustrative ranges from providers in our network, not offers.
The structure that fits first
- Lead productWorking capital
Payroll, materials and mobilization between draws
Providers size it from your bank deposits, not a completed project, so it bridges the wait while a pay application clears.
how contractors use working capital - Equipment financing
For excavators, machines, trucks and attachments
The asset secures the deal and keeps the cash you already have in the business for payroll and materials.
construction equipment financing - Business term loan
Where the amount and the end date are known
A yard, a shop fit-out, a fixed project budget: a set repayment schedule, the more predictable structure.
term loans for contractors
Decisions from some providers the same day, depending on the provider.Subject to provider approval and document turnaround.
The numbers before you apply
Typical amount
$10K–$10M
Across the products in our network
Equipment amounts
Up to $5M
Up to $500K on the application alone; up to $5M with full documentation
Speed
As fast as 6 hours
Same-day decisions from some providers; funding as fast as 6 hours, subject to provider approval and document turnaround
Amounts considered by providers in our network, depending on the funding provider. Not an offer. Cost is stated on each product page.
What do construction businesses use financing for?
Five needs account for most construction applications, and they are all about timing.
- Most common
Payroll between pay applications
The crew is paid weekly; the GC pays on its own cycle, well after the work it covers.
More: Payroll between pay applications
This is the single most common reason a contractor applies, and it is the clearest case for working capital.
Materials and supplier deposits
Lumber, steel, concrete and mechanical packages, often paid before the first draw.
More: Materials and supplier deposits
A supplier who wants a deposit on a long-lead item does not wait for the owner's architect to approve a pay application.
Mobilization on a new award
Crew, fuel, a trailer, insurance certificates and a bond, before the job earns a dollar.
More: Mobilization on a new award
Winning the work is the point at which cash is tightest.
Machines and attachments
An excavator, a skid steer, a boom lift, a service truck, a breaker, a trailer.
More: Machines and attachments
Financed against the asset: a machine that works for a decade should not be paid for out of operating cash, or out of one quarter of receipts.
Retainage and slow GC payment
A share of each pay application is held until close-out: earned, not yet collected.
More: Retainage and slow GC payment
It is the reason invoice factoring shows up in construction at all.
What do providers look for in a construction file?
- Preferred by some
- Higher risk to others
- Restricted by a few
That spread is the whole argument for one application to a network rather than six applications to six providers.
Four things decide a construction file
Deposit consistency
Revenue in every month of statements counts for more than one strong month followed by a weak one.
More: Deposit consistency
Seasonality is expected in this trade (a quiet winter in a northern market is read as a pattern, not as a decline) but the pattern has to be visible in the statements, which is why complete months matter more here than in a retail file.
Draw schedules and receipts
Lumpy deposits that match pay applications read differently from lumpy deposits with no explanation.
More: Draw schedules and receipts
Say on the application how you are paid: monthly pay applications, progress billing, time and materials, or on completion.
Retainage
Money held back to close-out sits on your books as earned and in the general contractor's account as cash.
More: Retainage
Providers know this, and some will not count retainage toward the revenue they size from. If a large share of your receivable is retainage, say so and expect factoring to come up.
License and insurance
An active contractor license in the business's name, and certificates that match the work, are table stakes.
More: License and insurance
Some providers verify the license number before funding. A license in a previous entity's name, or one that lapsed, stalls a file faster than a weak month does.
One application, two structures
A site-work contractor wins a municipal job. The award needs a machine it does not own and two months of payroll before the first pay application clears.
Equipment financing
$150,000
A used excavator and a breaker attachment
Paid for over years, against the asset
Working capital
$60,000
Payroll, fuel and materials until two pay applications clear
Funded short, out of the revenue the job produces
Illustrative example, not an offer. Amounts, costs and schedules are set by the funding provider that makes your offer and are disclosed in that provider's agreement. Financed equipment may qualify for a depreciation deduction. Consult a tax advisor.
General contractors, trades and heavy civil
Working capital + line of creditGeneral contractors
Largest files, longest gaps: you carry the subs. Working capital and a credit line lead; factoring if retainage dominates.
Equipment-ledHeavy civil and site work
Excavation and site work run on machines: the usual question is which to finance and which to rent for one job.
Materials-ledConcrete and masonry
Steel and framing too: supplier deposits come before the first draw, and mobilization money matters most here.
Places wellSpecialty trades
HVAC, plumbing, electrical and roofing: preferred by several providers. Their page: home services and specialty trades.
What does a construction business need to apply?
Some providers consider applications at these minimums. Meeting a minimum does not guarantee an offer. The application is a soft credit pull only.
12 mo
time in business
$15K
monthly revenue
525
credit considered from
3 mo
bank statements
5 min
application
Bring, on top of the statements
- A government ID
- More statements in some states: four in CA, NY, FL and GA with some providers
- Your contractor licence number
- A current certificate of insurance
- A short note on how you are paid and what the money is for
Providers ask what the funds are for, and a specific answer (a machine, a named job's payroll, a supplier deposit) reads better than "working capital".
Capital Gurus does not make the credit decision and does not fund the transaction. The provider that makes your offer does both, and its agreement governs it.
Frequently asked questions
In short
Most construction businesses need money for timing, not for profit: the work is finished, the pay application is in, the cash lands weeks later. Working capital financing is the lead product for contractors through Capital Gurus' network, with equipment financing and term loans beside it. Providers in our network consider $10K–$10M, depending on the funding provider.
Can a construction company get financing between draws?
Yes, and it is the most common reason contractors apply. Providers in our network size working capital from your bank deposits rather than from a finished project, so the gap between the pay application and the payment is something they underwrite every day. A line of credit does the same job for a gap that repeats every cycle.
What do providers look at on a contractor's file?
Deposit consistency first: revenue in every month of statements, not one strong month after a weak one. Then negative balance days, complete statements with no missing pages, financing already in repayment, your credit profile and your licence. Seasonality is expected in this trade and is read as a pattern, not as a problem, when the statements show it clearly.
Can I finance construction equipment with weak credit?
Sometimes. Equipment is the one structure where the asset itself carries part of the decision, so a weaker credit profile is less decisive than it is on a term loan. Some providers consider credit from 525 with 12 months in business and $15,000 in monthly revenue. Expect a shorter schedule, a smaller first amount, and a deposit.
Do providers fund residential new-build and remodelling?
Some do and some do not. A few providers in our network restrict new-home construction and residential remodelling outright, and others price the work as higher risk, so this part of the trade is harder to place than commercial or public work. It is still worth applying: one application reaches the providers whose guidelines accept it.
Can an LLC get a business loan?
Yes. Limited liability companies are the most common applicants in Capital Gurus' network, including single-member LLCs. Providers underwrite the business's revenue and time in business alongside the owner's personal credit, and most products require a personal guarantee from the majority owner. The LLC's registration date usually counts toward the 12-month minimum, and funds are deposited into the LLC's business bank account.
Is an SBA loan an option for construction?
It can be, usually for real estate, acquisition or the longest schedules. Capital Gurus is not an SBA lender; SBA loans are made by SBA-participating lenders. Expect several weeks to a few months, full financial statements and tax returns, and a decision made by the lender under SBA rules. If the need is this month's payroll, it is the wrong queue to join.
Still have a question?
talk to a funding advisorDecisions from some providers the same day, depending on the provider.
Subject to provider approval and document turnaround.
about 5 minutes, soft credit pull only · Talk to a funding advisor