Construction Business Loans

Get approved and funded the day you apply. No prepayment penalties and transparent loan terms.

An Overview of Commercial Construction Loans

Construction is a vital part of a thriving economy, and we rely on construction businesses like yours to renovate our homes, improve our plumbing, roofs, or windows, and bring new buildings to our communities. The industry continues to grow, yet that demand is still met with its own challenges. Construction business owners are familiar with challenges like fluctuating demand, weather-related disruptions, and employee turnover – all causing issues with cash flow.
A small business loan provides access to financing, so those challenges don’t disrupt your business. SmallBusinessLoans.com matches business owners with lenders  who know the challenges construction companies face and who have  decades of experience in securing financing for businesses. Here you’ll learn about loan options available to you and what type might work best for your business.

PRODUCT FEATURES

Explore customized solutions for commercial construction financing

Every small construction business has unique needs. That’s why we strive to offer custom financing solutions that perfectly fit your company’s business requirements.

Fast funding for construction businesses

Get your cash in 24 hours.

Construction loans with flexible terms

Make hassle-free payments.

Personalized financing solutions

Find solutions fit to your needs.

Suitable for all construction needs

Use for almost any business purpose.

Types of construction business loans

Business line of credit
A business line of credit is a form of credit that lets a business borrow what it needs (up to the approved credit limit) and leave what it doesn’t. The business then repays through weekly or monthly payments that are manageable for the business.
Business term loan
With a term loan, you borrow a lump sum of money and repay it with interest in installments over a specified period of time. You can find these issued as short-term loans of a few months to a couple of years, or with longer terms of a few to several years.
Equipment financing
Equipment financing is a general term that applies to either equipment loans or equipment leasing. With either type, the business funding is specifically used for the purchase of new equipment.
Business credit card
Business credit cards are a common way to pay for the everyday expenses that may come up for a general contractor or construction business. They function just like personal credit cards in that you pay interest on any outstanding balance you may have each month.

Benefits of Construction Loans

No personal guarantee needed

Unsecured construction loan lenders on Clarify have no collateral requirements. We specialize in the financial needs of small businesses nationwide.

On-demand approvals

Get funded within 24 hours of applying for a loan. Whether you have good or bad credit, we can help you secure funding quickly.

Buy your own equipment

Many construction companies end up using subcontractors due to a lack of equipment. With an equipment loan from Clarify, you can purchase equipment to make more money in the long run.

Grow your team

The only way to truly grow your enterprise is by hiring more staff. When opportunities outpace your workload, it's time to expand your team. Use a working capital loan to hire crew members until the new jobs start paying.

Flexible financing

Access to capital in times of need is key to the survival of contractors and construction businesses. Our loan products allow you to borrow quickly on demand with flexible payment terms.

Are we a match? Check our minimum requirements.**

6 months
in business
500
personal FICO® score
$100K
business annual revenue
Business
checking account

FAQs

What is the best loan for construction contractors?

The best loan for general contractors and construction companies depends on your business’s specific needs and financial situation. Here are some ways that the more popular business funding types are used by people in the construction and contracting industries:
Line of credit: A business line of credit is a popular funding option for businesses in the construction industry. Because much of a contractor’s demand is based on the need to cover upfront expenses, lines of credit are especially compatible with this type of financing. Once a construction business has been paid for the project that created the initial need to borrow, it can repay the borrowed credit in full and replenish its available credit.

Term loan: A business term loan is what most small business owners think of when they think of a common small business loan. This funding type can be good for businesses that have larger upfront expenses that may take several months or years to repay.

Equipment financing: For a construction company, this may be a particularly convenient option for the heavy duty machinery used on major construction projects. But many business owners don’t realize equipment loans can also pertain to office equipment such as desks, chairs and computers too.

Business credit card: Business credit cards are handy for covering regular business-related expenses. They can also serve the important purpose of separating the finances of the business from the business owner’s personal credit history.

How do I get a loan to start a construction company?

While some types of businesses benefit from investors and venture capital, construction business companies and general contractors can generally get started with more accessible funding options. These commonly include SBA loans, equipment financing and business term loans. Factors such as the small business owner’s creditworthiness will help determine which types of business funding the borrower is eligible for. It will also determine the interest rates and term lengths the contractor may receive.

Can I get a contractor loan with bad credit?

Getting approved for any type of loan or credit can be difficult when you have a low personal credit score. The minimum FICO® score requirement will vary from lender to lender. OnDeck does not lend to customers with bad credit, but it does offer term loans and lines of credit to borrowers with less-than-perfect credit. If you have less-than-perfect personal credit, read our blog post Improving a Good Credit Score to Make It Great. For tips on improving your business credit score, read our blog post 5 Ways to Improve Your Business Credit Profile.

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