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Business owners love that Lendio helps them get funding without the headaches.
Construction business loans, fast.
Apply for financing today to build your business, upgrade your equipment, or fund your next project.
Applying is free and won't impact your credit*
Proven construction lending expertise.
Get the answers and the funding you need with support all along the way.
$1.4 billion
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75+ lenders
providing broad coverage for small business lending.
*Qualification criteria, rates, and other funding terms will vary depending on the type and location of your business, and upon other factors. This is not a guarantee of funding, and it should not be relied upon as an accurate assessment of the availability or terms of the represented funding products.
How much can I qualify for?
Not sure what you need or what funding options are best for you? Use our simple calculator to get a rough idea of your options with no commitment, and apply when you’re ready.
Lendio knows the construction business.
Being in construction means having a lot of things to manage.With Lendio, you can explore different financing structures to findthe one that fits your company’s next big move. Use funds to:
Bridge capital between projects
Purchase supplies and materials
Refinance existing debt
Pay your crew
Invest in marketing
What type of commercial real estate funding is best for your business?
These are the most popular types of funding that other xxxx-based businesses qualify for through Lendio.
Business Term Loan
Borrow a lump-sum with a set repayment schedule, and get funding quickly with online options.
Business Line of Credit
Access available funds whenever you need them, and only pay interest on what you draw.
Accounts Receivable Financing
Convert unpaid invoices into immediate cash flow by selling your accounts receivable to a third party.
What types of business loans are available to construction businesses?
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
Find answers to some commonly asked questions in the construction industry.
What are the requirements to get a construction business loan?
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.
What is the minimum down payment on a new construction loan?
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.
Can contractors get a business loan?
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.
What is the best loan for contractors?
The best loan for contractors really depends on your circumstances and financial goals. If you need to improve your cash flow, especially if you consistently wait for clients to pay invoices, an asset- or revenue-based financing loan may be best for you. Another great option for contractors is equipment financing, especially if you plan on purchasing your own heavy machinery in the near future. In this instance, you can use the equipment itself as collateral.
What are the benefits of an online lending marketplace?
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.
What is an SBA loan?
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.
What are the different types of SBA loans?
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.
Ready for funding?
See what you can qualify for on the Lendio Marketplace.