Business Funding for Construction
The excavator broke down mid-project. Materials costs jumped 15% since you bid the job. The GC holds your pay for 60 days after completion. Construction operates on thin margins where cash flow timing and equipment reliability determine whether you profit or struggle.
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Understanding Construction Finance
Construction businesses face unique financing challenges driven by equipment intensity, project-based revenue, extended payment cycles, and significant working capital requirements between project stages.
Equipment Investment Reality
A mini excavator runs $30,000-$90,000. A skid steer costs $25,000-$75,000. Dump trucks run $50,000-$150,000. Equipment represents major capital investment for contractors.
Payment Cycle Challenge
GCs typically pay subs 30-60 days after work completion. Materials and labor are paid upfront. This structural gap creates constant working capital pressure.
Seasonal Patterns
Many markets have seasonal construction cycles. Northern climates see significant winter slowdowns while southern markets may slow in extreme summer heat.
Margin Sensitivity
Construction margins typically run 5-10% for most trades. Material cost increases, delays, and change orders can quickly erode profitability.
Why Construction Financing is Different
Project-based revenue, equipment intensity, and payment cycles create unique financing needs.
Equipment Breakdown
Excavator down means crew standing idle. You need immediate repair or replacement to keep the project moving.
Payment Timing Gap
Materials and labor paid now. GC pays 60 days after completion. The cash flow gap is structural.
Material Cost Increases
Lumber, steel, and concrete prices fluctuate. Costs may rise significantly between bid and project start.
Project Startup Capital
New project requires upfront materials, equipment, and mobilization before any payment arrives.
Seasonal Cash Flow
Winter slowdowns or seasonal patterns create periods with reduced revenue but continued overhead.
Bank Construction Hesitancy
Banks see construction failure statistics and project-based income variability. They often decline contractors.
Financing Built for Construction
Capital solutions structured around how construction actually operates. We understand project cycles, equipment needs, payment timing, and the reality that contractors cannot wait for bank timelines.
Equipment Financing
Excavators, skid steers, trucks, and construction equipment. Terms matched to equipment useful life.
Working Capital
Bridge the gap between project costs and payment. Fund materials, labor, and overhead.
Invoice Financing
Turn completed project invoices into immediate cash. Stop waiting 60 days for GC payment.
Speed When Needed
Equipment emergencies and project opportunities do not wait. Get capital decisions in hours to days.
Seasonal Awareness
We understand construction seasonality and evaluate businesses accordingly.
All Trades
GCs, electrical, plumbing, HVAC, concrete, framing, roofing, and all construction trades.
How Contractors Use Funding
Real scenarios where construction financing enables operations and growth.
Equipment Purchase
Excavators, skid steers, trucks, and heavy equipment. Finance over useful life.
Typical funding: $25K-$250K
Equipment Repair
Major equipment down. Need immediate repair capital to keep project moving.
Typical funding: $10K-$50K
Project Startup
Materials, equipment mobilization, and initial labor for new contract.
Typical funding: $30K-$150K
Materials Inventory
Stock materials when prices are favorable or for upcoming projects.
Typical funding: $20K-$100K
Payroll Bridge
Cover crew payroll while waiting for project payment.
Typical funding: $15K-$75K
Bonding Support
Working capital to improve financials for larger bond requirements.
Typical funding: $50K-$200K
Construction Financing Options
Understanding the range of capital solutions for contractors.
| Feature | Alternative Lender | Bank Loan | Equipment Dealer |
|---|---|---|---|
| Approval Speed | 1-7 days | 30-60 days | Same day possible |
| Construction Understanding | High | Low | Equipment only |
| Working Capital | Available | Limited | No |
| Equipment Financing | Available | Available | Equipment only |
| Credit Flexibility | Moderate | Strict | Varies |
| Invoice Financing | Yes | Sometimes | No |
| Cost | Moderate | Lowest | Varies |
| Emergency Speed | 24-72 hours | Weeks | Days |
Construction Qualification Basics
General guidelines for construction financing. Every situation is evaluated individually.
Operating History
Established construction business with consistent operations.
1-2 years for most products
Business Revenue
Demonstrable revenue from completed projects.
$200,000+ annual revenue
Business Bank Account
Business checking showing deposits and operations.
4+ months statements
Legal Structure
Properly structured business entity in good standing.
LLC, Corp, etc.
Licensing
Appropriate contractor licensing for your trade and location.
Licensed operation
Owner Credit
Owner credit reviewed for most products. Strong revenue can offset challenges.
Varies by product
Construction businesses are evaluated with understanding of project-based revenue and seasonal patterns.
Real Results
Precision Excavation
Site Work Contractor, Colorado
The Challenge
Precision's main excavator needed $28,000 in repairs mid-project. The GC was holding $85,000 in completed work but payment was 45 days away. Bank declined emergency financing.
The Solution
We evaluated their pending receivables and approved $35,000 within 48 hours. Revenue-based structure meant payments tracked with their project receipts.
The Result
Excavator repaired within 4 days. Project completed on schedule. Payment arrived on time and financing repaid from project proceeds.
“The excavator went down Tuesday. Friday it was running again. Without fast financing, I would have lost the project and the GC relationship.”
Construction Industry Snapshot
Key metrics shaping construction financing decisions.
Why Contractors Choose Us
What sets construction-focused financing apart.
Project Understanding
We understand project-based revenue, payment cycles, and construction cash flow.
Equipment Expertise
Heavy equipment, trucks, and construction assets valued appropriately.
Emergency Response
Equipment failures need immediate solutions. We provide the speed you need.
Seasonal Awareness
We understand construction seasonality and evaluate accordingly.
Invoice Advance
Turn completed project receivables into immediate working capital.
Growth Support
Larger projects, additional equipment, or expanded capacity.
Explore Your Options
Different financing products for different needs. Find the right solution for your business goals.
Equipment Financing
Finance excavators, skid steers, trucks, and construction equipment. Terms matched to equipment useful life.
Working Capital Loans
Bridge the gap between project costs and payment. Fund materials, labor, and overhead.
Invoice Financing
Turn completed project invoices into immediate cash. Stop waiting 60 days for GC payment.
Merchant Cash Advance
Quick capital based on business revenue. Perfect for contractors with urgent needs.
Business Line of Credit
Pre-approved capital you can draw as project needs arise.
SBA Construction Loans
Government-backed financing with the best rates for major equipment or expansion.