Construction Business Loans

Construction company loans rely on heavy equipment, such as loaders, excavators, bulldozers, etc., to conduct daily operations. However, you’ll need a substantial amount of money to purchase large equipment, and this could possibly put a dent on your cash flow.

You can use equipment financing to purchase or rent basic office equipment (phones, tablets, printers, furniture, etc.) to more expensive construction company loans equipment and/or vehicles.

Here are some of the ways you can use equipment financing:

• Purchase equipment
• Refinance existing equipment
• Update outdated equipment
• Lease new equipment
• Replace construction software
• Upgrade customer management systems
• Consolidate existing debt
• Purchase new equipment
• Business acquisition
• Partner buyout
• Debt refinance
• Upgrade equipment
• Purchase commercial real estate
• Refinance existing real estate mortgage
• Leasehold improvement
• Business expansion

SBA loans are widely used by construction firms, thanks to the lower interest rates, longer repayment terms, and higher loan amounts. The Small Business Administration created SBA loans to help small businesses, including the construction sector, secure bank-rate financing.

However, you need to prove that you’re a strong borrower to qualify for SBA loans. This can be challenging and time-consuming for small business owners. Our financial advisors will gladly help you throughout the entire process.

Here’s a list on how you can use an SBA loan your construction business:

• Loader Financing
• Excavator Financing
• Dozer Financing
• Truck Financing
• Crane Financing
• Equipment Management Software Financing
• Dump Truck Financing
• Air Compressor Financing
• Welding Equipment Financing
• Backhoe Financing
• Wood Chipper Financing
• Forklift Financing
• Concrete Paver Financing

Construction companies use a business line of credit for daily business operations. With this type of loan, you don’t have to pay for the entire line of credit; instead, only need to repay the money you’ve withdrawn, plus the interest.
Here are some of the ways you can use a business line of credit:

• Purchase supplies
• Advertising and marketing
• Day to day operating cashflow
• Purchase equipment
• Leasehold improvements
• Mobilization funding

Does your business own high-value assets? You can free up working capital loans for construction companies and use those assets to your advantage. An asset-based loan allows you to secure financing by putting up company assets (equipment, accounts receivable, inventory, etc.) as collateral.

Here’s why your construction business should use asset-based loans:

• Increase operating cashflow
• Refinance construction equipment
• Accelerate invoice payments
• Reduce monthly debt payments
• Purchase new equipment
• Hire new employees

A term loan is a classic business loan where business owners receive a lump sum that needs to be repaid within a specified period. These loans typically charge monthly payments and have repayment terms that range from one to five years. Many construction business owners apply for term loans because of their spending flexibility.

You’ll be able to use the funds from a term loan for the following expenses:

• Purchase new equipment
• Leasehold improvements
• Refinance existing equipment loans
• Consolidate debt
• Hire new employees
• Working capital injection

Many contractors use construction factoring to sell a portion of their invoices in exchange for upfront capital. Instead of waiting for months before getting paid, invoice factoring allows you to receive invoice payments sooner rather than later. As long as you have unpaid invoices to sell, you’ll be able to access working capital loans for construction companies anytime.

You’ll be able to use the funds from a construction invoice factoring for the following expenses:

• Marketing and advertising
• New construction projects
• Business expansion
• Hiring new employees
• Purchasing materials
• Leasehold improvements

Contractors that bid on large commercial jobs often need of financing to pay for upfront expenses associated with the new project. Mobilization funding provides capital for expenses incurred before you can invoice your customer.

Once you invoice your customer and get paid you can pay back the mobilization financing. Frequently mobilization funding is paired with factoring to help accelerate cashflow throughout the life of the project.

Here are some of the ways you can use the funds from a mobilization funding:

• Purchase materials
• Labor expenses
• Buy new equipment
• Hire new employees
• Travel expenses
• Design fees