Construction Small Business Loans  

A construction business loan is a short-term financing solution used to finance aspects of the business, cover unexpected expenses, or help foster growth. 

Business owners can receive up to $400,000¹ in funding and have many loan options available to choose from. In addition to several loan types, there’s also a choice in where you get your funding. While traditional lenders such as banks delay progress with extensive qualifications and long approvals,  alternative lenders step in as digital-first financing solutions. SmallBusinessLoans.com partners with alternative lenders who have easier applications, flexible qualifications, and fast processing to ensure businesses can keep up with demand or maintain operations when they need it most. No matter your business’ goals, there’s a financing solution that can help you get there.   

Your business has unique challenges and requires a customized loan type. Here are some typical loan types construction business owners use and know that our lending partners work closely with you to tailor the right loan to your needs. 

Short-term business loan
If your business needs cash to cover an unexpected incident or cover the cost of operations, a short-term loan provides peace of mind and keeps your business up and running. Short-term business loans are temporary financing solutions with most repayment terms lasting one year or less.  

Working capital loan
A working capital loan supports businesses that are lacking sufficient cash flow with the funding they need to continue operating smoothly. It is designed to cover everyday expenses rather than long-term assets or planning. This can be used to provide much-needed capital for your business and help fund the hiring of more employees, purchasing equipment or project materials, or give you the cash on hand to grow your business.  

Equipment financing loan
Equipment financing provides a solution for businesses that need to cover the cost of an equipment upgrade. Construction business owners can purchase or lease equipment such as bulldozers, backhoes, or pipe cutters for their business. A large variety of new or pre-owned equipment qualifies, so you can secure the crucial equipment you need. 

These three loan types are the most common, but a loan can be customized to your business. Match with a lender today to find your perfect solution.  

Getting access to funding provides your business with the most important thing – your peace of mind. But here are examples of what financing can be used for in your business: 

• Purchase equipment 
  Buy or lease equipment critical to your business such as trenchers or loaders
  Use funds to buy project materials or improve technologies with better software for your business 
• Hire employees 
  Manage high turnover rates by having funding available to hire new employees
  Grow your workforce to meet growing project demands 
• Manage cash flow
  Control cash in between projects
  Maintain capital to manage operational expenses during slow periods 
• Expand your business 
  Be prepared for increased demand with access to capital
  Acquire other small businesses to expand your operation 

You can use your construction small business loan for a wide variety of things for your business. Ineligible uses vary by lender, but common ineligible costs are furniture, personal expenses, or closing costs. Your lender will work directly with you to find the best terms suitable to your requirements.

Qualifying for a construction loan is easier with many alternative lenders. The eligibility requirements are simple. Here’s what an example of what you might need:

• At least six months in business
• Minimum $250,000 in annual gross sales
• Fair to excellent credit

Many traditional lenders require a lot of paperwork and documentation for their loan – but our partners keep the paperwork to a minimum. Required materials are often limited to a credit check and bank statements so you can get approved for funding faster.

Now, you know what loan option fits your needs and the necessary qualifications. After getting matched with a lender from SmallBusinessLoans.com, it’s time to gather your application materials and get started. Let’s take a look at the five easy steps it takes to secure funding for your business:

1. The business needs to meet the minimum qualifications for a loan set by the lender.
   Most alternative lenders require a business to be in operation for six months and a minimum $250,000 in gross sales.
2. The business owner then fills out an application and provides the required materials.
   Often, you’ll be asked to provide bank statements, balance sheets, and business and personal credit scores.
3. The lender examines the loan application, credit history of the borrower, and other qualifications.
   At SmallBusinessLoans.com, you’ll be paired with a lender who quickly reviews applications.
4. The lender determines the loan amount, interest rate, and repayment terms.
   If the business accepts the loan terms, the funds are then transferred to the business.
5. The business repays the loan according to the terms of the agreement.

Don’t let access to capital stop your construction  business from growing as much as it can. Fast, reliable funding can take your construction business to the next level or carry your business through uncertainty. SmallBusinessLoans.com can help you get funding quickly and efficiently. We’ve already done the work in sourcing top lenders to partner with, so you have one less thing to research. We’ll match you with a lender who specializes in the construction industry so you can get financing solutions specifically tailored to your needs and secure the necessary funding for your business.