Construction
business loans

Faster, easier small business financing with one simple application—no bank needed.

Applying is free and won’t impact your credit.

Reviews from construction small business owners.

Mitchell Wynne

OCTOBER 13, 2021


Great company and customer service

This was the best experience I have ever had dealing with working capital financing. Anthony Melhado Senior Funding Manager was great to work with. If he said it you could believe it because he was very truthful and down to earth to deal with. I have been in the Construction industry for over 30 years and have deal with a lot of financing. Lendio and Anthony were great. Thanks again Anthony Melhado for your business and help on financing.

Daniel T

SEPTEMBER 26, 2019


I’m forever grateful for…

I’m forever grateful to Jeff for delivering the line of credit that my business needed. We are a small construction firm and this LOC now makes it possible for us to go after more work without having to worry about how to fund the projects. This is an amazing time for our company and a game changer. We can expand our operations. Jeff was very professional, knowledgeable, and understanding of our needs. He delivered the line of credit in a quick turnaround.

James Black

APRIL 20, 2021


As a construction worker…

As a construction worker and small-time contractor, I know the hardship of the Covid pandemic. The stress can be through the roof. Lendio basically did all the work and it was a stressful process made very easy and pleasurable by their agent. I seriously couldn’t have asked for a better group of professionals to guide me through this process. Thank you so much.

Lendio knows construction small businesses.

Whether you’re looking to purchase a new piece of equipment or order raw materials in bulk to combat rising inflation, Lendio connects you with an array of lenders that can help. Access different financing structures to find the one that fits your company’s next big move.

We know how to build big. No matter how large or small your construction financing needs are, Lendio has the network to make it happen.

The construction industry may be facing challenges like inflation, labor shortages, and supply chain issues. But finding a quality construction business loan doesn’t have to be on your list of problems.

Why Lendio?

Quick & easy

Apply in just 15 minutes and get funded in as little as 24 hours

Your partner in business financing

Get personalized support throughout the funding process. Your funding manager will be with you every step of the way to answer your questions and advocate for you.

Offers tailored to your business

Compare loan offers from multiple lenders. With over 75+ lenders in our network, your funding manager will work with you to ensure you get the best rates and terms for your business.

How our loan matching process works.

STEP
1

Fill out our simple application.

Answer just a few questions about your business to see which lending products you qualify for. We’ve partnered with over 75 lenders, allowing us to find the best option or your business.

STEP
2

We’ll connect you with a funding specialist.

One of our funding specialists will reach out to you to get to know your business better. Since every business is unique, we want to make sure we find the loan type that’s perfect for your needs.

STEP
3

Compare loan offers.

Compare different offers curated for your business. Select the capital amount and rate that will help take your business to the next level.

STEP
4

Get funded.

We work with lenders that can fund you fast. Once you’re approved, you’ll be able to access your capital in as little as 24 hours.

How do construction business loans work?

A construction business loan gives working capital to construction companies, whether the focus is on residential, commercial, or mixed-use projects. While there are no loan products specific to the construction industry, you can instead search for loan structures that make sense for your business model.

Construction business owner

Where to get a construction loan.

There are multiple options to pick from when finding a lender. You can get a loan for your construction business from private lenders, banks, credit unions, and from the SBA.

Ways to use a construction business loan.

Acquire land

You’ll need to purchase a piece of land before building on it. Whether you’re building a house, a mall, or a hotel, you can use a construction business loan to acquire land for your building projects.

Purchase construction materials

Whether you’re in the residential or commercial construction industry, purchasing materials is crucial to making your project successful. A construction business loan can provide the capital you need to purchase necessary materials.

Compensate for labor

As a construction business owner, one of your biggest expenses will be the cost of labor. You can use a construction business loan to provide the fair compensation that your employees deserve.

Pay for subcontractors

At some point, you will likely need to hire subcontractors to complete specialized tasks in your building projects. A construction business loan can provide you with the capital you need to pay subcontracting fees.

Types of business loans for construction.

Asset or revenue-based financing

With asset-based financing, also known as invoice factoring—instead of waiting for clients to pay invoices—a funder purchases an invoice from the borrower at a discounted rate, which the business will then pay back to the funder as the business collects on the invoice. In contrast, revenue-based financing provides you a lump sum based on expected future revenue.

TERM LENGTH

1-15 months
MAX LOAN AMOUNT

$1 million (revenue-based financing); $50 million (factoring)

Debt financing

With debt financing, a fixed lump sum is disbursed up front to the borrower. Then the borrower repays the principal, plus interest, in regular, fixed payments over a certain period of time, which makes it easier to budget for. Online term loans come with fast approvals and funding time. An SBA loan could get you access to a lower interest rate because it is backed by the federal government.

TERM LENGTH

6 months-25 years
MAX LOAN AMOUNT

$5 million

Line of credit

A line of credit can be a helpful resource to have in place as a safety net while maintaining positive cash flow. It’s similar to a credit card in that you can borrow money only as you need it, instead of paying interest on a one-time lump sum right off the bat. A line of credit is ideal for emergency expenses and inconsistent cash flow issues.

TERM LENGTH

6-24 months
MAX LOAN AMOUNT

Up to $250,000

Equipment financing

Most construction companies require some type of physical equipment, making equipment financing a popular choice in the industry. If you lease, the financing uses the equipment as collateral, so you can avoid putting up other assets as collateral.

TERM LENGTH

1-5 years
MAX LOAN AMOUNT

$5 million

FAQs

A construction business loan gives working capital to construction companies, whether the focus is on residential, commercial, or mixed-use projects. While there are no loan products specific to the construction industry, you can instead search for loan structures that make sense for your business model. Lendio helps you access multiple offers to find the best fit.

  

Each lender has its own criteria for financing approval. However, at Lendio, we have a few basic, minimum eligibility requirements in order to apply for a construction loan for business. First, the owner or primary applicant must have a personal credit score of at least 600. The company must also be in business for at least six months with a monthly revenue of $8,000.

 

Business construction loans can be used for almost anything, including:

  • Operating expenses, like payroll, rent, utilities, and insurance
  • Hard costs, like building materials, permanent fixtures, appliances, and landscaping

Check the details of your loan to see if real estate purchases, like land, are allowed before you move forward with a transaction.

Because there is usually no existing property to secure a construction loan, lenders take on a higher risk. To compensate for this risk, lenders will typically have businesses make a down payment of up to 20%. Depending on the type of loan, some borrowers may qualify for zero percent down.

Yes, there are construction business loan options for contractors. Contractors can apply for a variety of business loans to help their company, whether you need to even out cash flow, invest in new equipment, or expand your operations. You can learn more about business loans for contractors here.

When you need funding fast, a lending marketplace is a great option. The application is simple and quick, you have a marketplace of many lenders to compare and choose from and the support of a funding manager throughout the funding process.

An SBA loan is backed by the U.S. Small Business Administration, which encourages lenders to loan funds to businesses by offering an extra layer of financial security. For applicants, it means you may be able to access affordable financing even if you don’t qualify with a traditional bank. Rates are tied to the current prime rate and loan repayment terms are long. Plus, you may be able to qualify for larger loan amounts than an online lender or bank would normally offer.

Here are the three main types of SBA loans for construction companies to consider:

  • SBA 7(a) loan – Borrow up to $5 million for working capital, purchasing assets, or refinancing existing debt. You can also use the funds to acquire a competing construction company or buy out one of your current partners.  
  • SBA 504 loan Great for construction companies, a 504 loan can be used for assets like machinery, land, and buildings. 
  • SBA microloan – Just starting to grow your construction business? A microloan lets you borrow up to $50,000 to help you scale.

8 out of 10 Lendio employees* or their families own a small business.

*based on 136 Lendio employees who responded to an internal poll

Quickly Compare Loan Offers from Multiple Lenders

Applying is free and won’t impact your credit

Talk to a rep at (855) 853-6346
Mon-Fri 7:30am-5pm MST