Line of Credit for Construction
Draw $15,000 Tuesday for emergency equipment repair. Pay it back when the project payment arrives. Draw $30,000 next month for material pre-purchase. A credit line gives contractors flexible access to capital that matches the variable rhythm of construction.
How much funding do you need?
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How Credit Lines Work for Construction
A business line of credit is pre-approved capital you can access as needs arise. Perfect for construction's variable equipment emergencies, material purchases, and project timing gaps.
Emergency Response
Excavator hydraulics fail. Draw $12,000 immediately. Get repairs done, complete the project, repay from project payment. Pre-approved access solves emergencies.
Material Flexibility
Draw $25,000 for material pre-purchase when prices are favorable. Pay down from project proceeds. Draw again for next project. The line adapts to your needs.
Payroll Bridge
Project payment delayed. Draw to cover payroll, repay when deposit hits. Same-day access eliminates payroll timing stress.
Interest Efficiency
You only pay interest on drawn funds. A $100,000 line with $25,000 outstanding means interest on $25,000. Unused capacity has minimal cost.
Why Contractors Need Revolving Access
Construction faces variable, unpredictable capital needs. Credit lines provide flexibility to respond.
Equipment Emergencies
Excavator down. Truck needs transmission. Critical equipment needs immediate repair capital.
Material Timing
Material prices favorable now. Project does not start for 6 weeks. Need capital to pre-purchase.
Payroll Timing Gaps
Project payment delayed. Crews need payroll. Need capital to bridge the gap.
Repeated Application Cycles
Each capital need means new application, new documentation, new approval wait.
Project Startup Capital
New contract requires materials and mobilization. Need capital before project payment arrives.
Paying for Unused Capital
Taking a term loan for variable needs means paying interest on funds sitting unused.
Establishing Your Construction Credit Line
Get approved once, then access capital whenever projects demand.
Application
Complete application with business information, financials, and credit line request.
15 minutes
Underwriting
We evaluate project history, deposit patterns, and credit profile.
5-10 days
Approval
Receive your credit limit. Once established, access remains available ongoing.
Upon approval
Draw and Repay
Request draws when needed. Repay from project payments. Capacity regenerates.
Ongoing
Flexible Capital for Construction Needs
A business line of credit provides pre-approved access to capital you can tap as construction operations demand. Fund emergencies, cover payroll gaps, purchase materials, all without waiting for new approvals.
Pay Only for What You Use
Interest accrues only on drawn funds. Unused capacity has minimal cost. Perfect for variable construction needs.
Revolving Access
Pay down balance from project payments, capacity regenerates. One approval creates ongoing access.
Emergency Ready
Equipment emergencies need immediate solutions. Pre-approved access delivers same-day capital.
Payroll Bridge
Bridge project payment delays. Never stress crew payroll timing again.
Fast Draws
Once established, draw funds in minutes with same-day deposit. No new applications.
Material Purchases
Draw for material purchases when timing is right. Pre-purchase at favorable prices.
Credit Line Applications for Construction
Real situations where pre-approved credit access makes the difference.
Equipment Emergency
Equipment down. Draw immediately for repair. Get back on the project.
Typical funding: Draw $10K-$35K
Payroll Bridge
Project payment delayed. Draw to cover crew payroll, repay when deposit hits.
Typical funding: Draw $10K-$40K
Material Pre-Purchase
Lock in material prices. Draw to purchase, repay from project proceeds.
Typical funding: Draw $15K-$50K
Project Startup
New contract requires mobilization capital. Draw for startup costs.
Typical funding: Draw $20K-$75K
Subcontractor Payment
Sub needs payment before GC pays you. Bridge the timing gap.
Typical funding: Draw $15K-$50K
Seasonal Bridge
Winter overhead while waiting for spring project starts.
Typical funding: Draw $20K-$60K
Credit Line vs. Other Options
Understanding when a credit line makes more sense than alternatives.
| Feature | Line of Credit | Term Loan | MCA |
|---|---|---|---|
| Payment Structure | Interest on balance | Fixed monthly | % of deposits |
| Revolving/Reusable | ✓ | ✗ | ✗ |
| Speed of Access | Same day draws | New application | New application |
| Pay for Unused? | No | Yes | No |
| Emergency Ready | Yes | No | No |
| Best For | Variable/ongoing needs | One-time planned | Quick fixed need |
| Material Flexibility | Excellent | Poor | N/A |
Credit Line Requirements
Qualification for construction business lines of credit.
Business History
Established construction business with consistent operations.
2+ years preferred
Business Revenue
Demonstrated project revenue showing operational capacity.
$300,000+ annual
Owner Credit
Owner credit score is important for credit line approval.
640+ preferred
Deposit Patterns
Consistent deposit patterns showing operational stability.
Regular deposits
Bank Account History
Business bank account showing project deposit history.
6+ months history
Current Obligations
Current on existing obligations without recent defaults.
Clean payment history
Credit lines typically require stronger qualifications than one-time loans. The ongoing access justifies more thorough evaluation.
Real Results
Cornerstone Concrete
Concrete Contractor, Arizona
The Challenge
Cornerstone's variable needs included equipment repairs, material pre-purchases, and payroll bridging. Each need previously required new financing application.
The Solution
We established a $100,000 business line of credit. Cornerstone draws as needs arise, repays from project payments, and maintains access for the next need.
The Result
Over 24 months, Cornerstone has drawn and repaid over $250,000 through the same line. They handle emergencies immediately, pre-purchase materials strategically, and never stress payroll timing.
“Between equipment issues, material timing, and payroll gaps, I used to apply for financing constantly. Now I draw when needed and pay back when project payments arrive.”
Construction Credit Line Data
How contractors use lines of credit.
Why Contractors Choose Credit Lines
Strategic advantages of revolving credit for construction.
Emergency Response
Equipment failures need immediate solutions. Same-day draws deliver.
Payroll Security
Bridge project payment delays. Never stress crew payroll timing.
Material Strategy
Pre-purchase materials when prices are favorable.
Cost Efficiency
Only pay for capital actually used. No interest on idle funds.
Project Flexibility
Capital available for any project need that arises.
One Application
Approve once, access for years. No repeated cycles.