Best Construction Business Loans
Construction companies and specific trade contractors are always in need of capital due to the nature of their business and the construction industry. Getting money to help run the business is essential when balancing multiple jobs. Many times you have to purchase supply and meet payroll before funds come in from clients. Even for a successful business, traditional bank loans have always been challenging to get from banks due to the high risk nature in the construction contracting business. AdvancePoint Capital can provide construction business loans to construction companies like yours, so you focus on running your business and make it grow. Experience our service that you won’t see at banks.
The 6 Best Business Loan Options for Construction Contractors:
There are many options that a construction business owner can use to their benefit when bank loans aren’t an option. For small business owners, finding the best construction business loan that works for your business may take some guidance. That’s why we put together the six best loan options for construction contractors. Each of these construction financing options offers unique benefits and qualities that may work for your company. Take a look:
Short-Term Business Loans
Short-term business loans are a financing option for a construction business owner looking fo a financing option that provides a fixed amount of money, with a fixed cost that is paid back over a term from 6 to 18 months. Short term small business construction loans are easier to acquire as the standards are easier for approval than traditional long-term loans and are an excellent option for working capital. These small business loans are typically unsecured loans for construction companies.
Highlights of Short-Term Loans:
Allows for substandard business credit with good and bad credit accepted
Low monthly or annual revenue requirements
Easy Process, Same day to next day business funding available
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Short-Term Business Loans
Business Line of Credit
Equipment Financing
Equipment loans can come in the form of an equipment loan or equipment lease which both are used to purchase specific equipment as collateral as you would when buying a truck or automobile. Equipment financing is usually structured as a lease to purchase or fixed-term loan with low down payments. Construction business loans can also be used to buy equipment can serve as an alternative to equipment financing as well.
Highlights of Equipment Financing:
Minimal paperwork require
Instant funding
Equipment financing can be used to purchase construction equipment new or used
Terms from 12 months to 5 years
Affordable monthly payment
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Equipment Financing
SBA Loans
SBA sets guidelines for SBA loans that the small business administration guarantees to approved SBA lenders. SBA is not the lender. SBA loans provides long-term, fixed-interest rate financing at desirable interest rates and terms. These small business loans are highly desirable by construction businesses, but the process is lengthy, with many paperwork requirements and high credit standards. This product is mainly for established businesses.
Highlights of an SBA loan:
Low-Interest Rates
Repayment terms from 12 months to 25 years
Affordable monthly payment
Can use the money for various needs
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SBA Loans
Invoice Factoring or Financing
Invoice financing, also known as invoice factoring, allows the construction businesses to leverage outstanding invoices and receive advances off those invoices a day ahead of the “net” terms of 30, 60, or 90 days the invoices typically take to get paid. Invoice financing is a great way to get cash fast off work that has been completed but not paid for yet. The product is geared towards business to business only, so unless you have other companies you invoice, this product won’t be available if your customers are consumers.
Highlights of Invoice Financing:
Lightning-fast access to capital
Credit requirements based on your customer, not your credit. Personal credit score not needed.
No limitations on the use of funds
No payments, no long term debt obligations
Not based on what’s in your business bank account
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Invoice Financing
Business Credit Cards
A business credit card is a small plastic card issued to a business by a financial institution, allowing the holder to use the card to instantly purchase or pay for items on demand instantly offline and online. The card operates as a revolving credit line with a credit limit and charges principal and interest on the account’s balance monthly. This card is a prevalent choice for construction businesses since repayment terms are flexible, and has lower monthly payments than other business loans.
Highlights of Business Credit Cards:
Principal & Interest based on prime rates
No prepayment penalties
No limitations on the use of funds
Low monthly minimum payment, no set amount
Benefits of Construction Business Loans for the Construction Industry
Business’s Cash Flow/Working Capital Loans
One of the great challenges for construction businesses is cash flow. Most projects a construction company takes on have completion dates and/or time frames that can fluctuate due to delay’s , causing cash flow unpredictability and unexpected expenses. Business loans solve that problem by filling immediate issues like customer payment delays, supply and equipment purchases, payroll, and general operating expenses. If you own a construction business, you know how important loans for construction companies can be to operational costs, progress, and growth. Contract loans and construction financing options give construction businesses the freedom to take on new opportunities through smart funding from qualified lenders like AdvancePoint Capital.
Marketing and Advertising
Many contractors need advertising to maintain or grow their customer base. Business loans allow companies to design and optimize their websites on the internet for greater exposure. Other internet methods to acquire customers include pay-per-click advertising, SEO, and buying leads.
Traditional methods like radio, newspaper, and signage may also work. A construction company can take these small business loans as an opportunity to meet or exceed marketing challenges. While many loans are crafted to serve construction company operational costs, funding can also be used for promotional purposes. With the proper attention to ROI, loans for construction companies for purposes of marketing, can take advantage of new audiences and customer bases.
Hire Employees or Manage a Growing Team
Hiring a great team is the lifeblood of a construction business. Recruiting can cost a lot of money because the workflow is not as steady as other businesses. Salaries and signing bonuses can burden a business without construction business financing to ensure cash flow issues are dealt with accordingly.
Construction business loans are a great way to grow and utilize funding for onboarding and expansion. Contractor loans offer a ton of flexibility in an industry where the workforce isn’t stagnant.
Make Payroll
Payroll can grow into something that must be managed and maintained with zero tolerance for cash flow shortages. Unexpected issues related to construction company receivables can put a business in a position they can’t afford to be in, which is missing a payroll.
Working capital and other operational costs are a necessity for a successful construction business. The right funding option to help with working capital needs is a real game-changer. The vast and diverse range of construction business loans gives business owners the freedom to make sound financing decisions and eliminate payroll as a problem.
Large Expansion
Construction business owners may be fortunate enough to see your growth outsizing your current facility and you need to expand your facility, that’s where a commercial construction loan may come into play.
Types of Construction Companies We Serve:
We offer construction financing to a wide range of small businesses within the industry. We have a wide range of options to help. We provide construction business loans, line of credit and other construction business financing solutions that you can take advantage of today for a wide range of needs.
- General Contractors
- Plumbing Contractors
- Electrical Contractors
- Home Improvement/Remodelers
- Landscaping Contractors
- HVAC Contractors
- Residential House Builder
- Commercial Building Contractors
- Construction Manager
- Sub-Contractors
- Demolition Contractors
- Property Maintenance Contractors
Get started today. We offer a wide range of loans and lines of credit options that you can take advantage of for your construction business — regardless of your credit score or history.
Finding the right funding solution can be difficult, but here at AdvancePoint Capital, we make it easy to get the funds you need.
Why AdvancePoint Capital?
We’ve helped countless construction companies find the loan option that works best for their business. Our simple diverse range of construction loans and funding opportunities gives our customers the freedom and flexibility to find a loan solution that works for them. Our simple application process and instant cash-on-hand experience are just around the corner.
With AdvancePoint Capital, you’ll benefit from construction industry professionals, experience, specialists, and a trusted name in the funding industry. We make it easy to get loan offers with a fast approval process.
Experience in the Construction Industry – We have been funding construction businesses for years.
Trust – Excellent reviews and feedback
Loan Specialists – Experienced funding experts who know the construction industry.
No cost, no commitment quotes
Products – A variety of financing products for the new business or existing business. We don’t just offer what we have; we deliver what’s available in the marketplace.
Service – Excellent customer service and responsive
Construction loans can be intimidating, but they don’t have to be. At AdvancePoint Capital, we can find a funding solution that works with your construction company instead of against it. Go to our website form, fill and apply and find out what your loan terms would be!
The fast, convenient, and straightforward way to get the money you need for your small business – now!
How much funding do you need? Get your quote today by filling out our simple form.
Frequently Asked Questions
Is a construction loan challenging to obtain?
This may depend on which type of loan you’re looking for for your construction business. Luckily, there is a wide variety of options for you to choose from, each with different qualifications so that you can discover a solution that works for you.
Can I qualify for a construction loan if I have bad credit?
Yes, there are funding options that you can take advantage of even if you have a poor credit history. Small business loans, shorter-term options, and invoice financing are great options for those struggling with creditworthiness.
Can I get a startup construction loan?
It is possible to obtain a startup loan for a construction company, but qualifying for these options may be more limited and difficult. The SBA has some incredible funding opportunities for startups. However, eligibility for SBA funding is not easy.
What’s the best business construction loan? What are construction loan rates?
That’s a loaded question! That depends on a wide range of factors, including how long you’ve been a company, what you need the funds for, credit history, and current financial circumstances. The best way to determine which loan is best for your company is to look at all of your options or consult with a lending professional regarding your unique circumstances.
