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Construction Business Loans: Best 6 Options To Consider in 2023

As a construction company owner, you might be faced with the challenges of competition, seasonality, and spontaneous opportunities for growth. Because of these common problems, applying for a small business loan is often a normal stage of an expanding construction business.

Best Construction Business Loans for 2021
Tetiana Sitiugina-Babiuk
Independent writer and content strategist

Reviewed by: Jen Hubley Luckwaldt, Content Writer and Editor


Many or all of the products featured here are from our partners who compensate us. This may affect which companies we write about and where the company appears on a page. However, any analyses, or reviews expressed in this article are those of the author’s alone, and have not been approved or endorsed by any partner.

Whether your construction business is brand new or already established, cash flow will always be on your mind. Construction business loans can be used to cover hefty construction expenses, such as on-site facilities, materials, temporary machine parts, and employee wages. Construction company owners can also benefit from having funds readily available on demand, in case of any unforeseen expenses.

In this article, we are going to cover everything you need to know to find the best small business loan for your construction business.

Construction Business Loans: Best Options to Consider by

While there are various types of financing available to finance construction business needs, choosing the right one to apply for comes down to several main factors

Our financial experts highlight the rates, fees and terms of each lender and explain what makes them a good option. We also share potential downsides of each lender, and provide a rating methodology you can use to select the best option for your needs..


Best Construction Business Loans for 2023 - Full Overview

When it comes to construction business loans, there is no one-size-fits-all option. Instead, the ideal financial product for you will depend largely on the specifics of your business and what you need the money for.

Best Overall

American Express Business Blueprint™ - Best for Fair Monthly Revenue

Average Monthly Revenue
At least $3,000
Min. Time in Business
12 months
Min. Credit Score
Key Features
  • Monthly fee: 3-9% for 6 month loans, 6-18% for 12-month loans, 9-27% for 18-month loans
  • Loan amounts ranging from $2,000 to $250,000
  • No prepayment penalties and no origination fees
  • Convenient application process
Pros & Cons
  • Straightforward online application
  • Convenient processing times
  • Debit card provided to access funds
  • Friendly and accessible customer service
  • Complicated fee structure
  • High interest rates
  • No prepayment incentive

American Express® Business Line of Credit is a great option for construction businesses that need to cover daily operational expenses, such as employee wages.


Main Features
American Express Business Line of Credit ranges from $2,000 to $250,000, with a repayment period of either 6, 12, or 18 months. American Express Business Line of Credit offers a slightly different fee structure than traditional loans. If you’re accepted, you will pay a monthly fee that varies by term length: 6-month loan: 3-9%, 12-month loan: 6-18%, 18-month loan: 9-27%.

American Express Business Line of Credit is a solid choice for construction businesses looking for a line of credit to help meet business expenses. Just be aware that of the fee structure. Calculate potential interest on each draw to ahead of payments.

National Funding - Best for Construction Equipment Financing

Min. Annual Revenue
Min. Time in Business
24 months
Min. Credit Score
Key Features
  • Borrow up to $500,000
  • Fast funding
  • Early payment discounts
  • Loan Repayment 2-5 years
  • Factor rate From 1.10
Pros & Cons
  • Favorable rates and terms
  • Lenient qualification requirements
  • Quick fund disbursement
  • Easy online application
  • Evidence of equipment purchase required
  • Some additional fees apply

The equipment financing and leasing loan from National Funding is intended to be used specifically for the purchase of a piece of construction machinery or equipment.


Main Features
With an equipment financing and leasing loan from National Funding, you can expect to have more attractive rates and terms than with some other forms of financing. This is due to the fact that the purchased equipment itself will serve as collateral for the loan. However, you will be required to provide proof that you have actually purchased the machinery or equipment. With this type of construction business loan, the loan amount can range up to $150,000, with a 2- to 5-year repayment term.

If you are looking to buy an expensive piece of construction machinery or equipment, National Funding is a great resource to consider. You can receive up to $150,000 for the purchase, with reasonable terms and conditions.
Backd business loans

Backd - Best for Cheapest Interest Rates

Min. Annual Revenue
Min. Time in Business
One year
Min. Credit Score
Not specified
Key Features
  • Borrow up to $2 million
  • Industry best factor rate for MCA - as low as 1.10
  • APR for the Line of credit product starts at 35%
  • Flexible repayment terms up to 16 months
  • Get funding in as little as 24 hours
  • Check your rate with a soft credit pull
Pros & Cons
  • Fast lending decision and funding times
  • Large loan amounts available
  • Flexible payment options
  • Must be in business at least one year
  • Rates not disclosed prior to application
  • All industries will not qualify

Backd was founded in 2018 and has since funded more than $1 billion to 10,000+ small businesses. If you’ve tried traditional banks and lenders, Backd may be able to provide you with the funding you need. And best of all - they offer loan amounts up to $2 million, perfect for construction businesses looking to upgrade their equipment, expand their business, or take on a large project. Backd does not disclose rates and fees on their website; however, when you apply, you will receive all rates and terms prior to accepting the loan. We recommend reading through the terms thoroughly before you sign.


Main Features
Backd offers two loan products - working capital loans and business lines of credit. Working capital loans range from $10,000 to $2 million and terms are up to 16 months. You can make payments daily, weekly, or semi-monthly. Business lines of credit range from $10,000 to $750,000 with unlimited terms. Neither option requires you to put up collateral. If approved for either loan, funds can be in your account within 24-48 hours. To qualify for a working capital loan or business line of credit from Backd, you need to be in business for at least one year and have $100,000 or more in annual revenue.

If you’re in need of a large construction loan with flexible payment options, consider Backd. It takes just a few minutes to apply and a lending decision is given almost instantly.
gokapital review

GoKapital - Best for Multiple Loan Options

Min. Annual Revenue
Min. Time in Business
12 months
Min. Credit Score
Key Features
  • Borrow up to $5 million
  • Loan Terms 2 to 10 years
  • Interest rates start at 25%
  • Wide range of loan offers
  • Simple application process
  • Instant pre-approval
Pros & Cons
  • Easy online application
  • Low credit accepted
  • Available in all 50 states
  • Early payment discounts available
  • Quick decision and funding times
  • Interest rates can be high
  • Annual income requirements can be high

GoKapital was founded in 2013 and offers six different types of small business loans that can be used for construction businesses, in addition to commercial loans and investment property loans. Other types of lending include small business term loans, merchant cash advances, equipment financing, business lines of credit, SBA loans, and startup loans. GoKapital is available in all 50 states, offers early payment discounts, and looks at more than just your credit score when approving loans for borrowers.


Main Features
A traditional small business term loan from GoKapital ranges from $20,000 to $5 million with terms of two to 10 years. Business lines of credit range from $5,000 to $55,000 with terms up to one year. Regardless of what type of loan you apply for, just a soft credit check will be done, meaning your credit score will not be affected. You should receive a lending decision within 24 hours, and some loans disburse funds on the same day as loan approval. Qualifications will vary depending on the type of loan you apply for, but we recommend a credit score of at least 500, a business history of one year, and an annual income of $240,000 or more. If you don’t meet the income requirement, GoKapital startup loans are worth considering.

GoKapital makes acquiring funding an easy process. Whether you need a small, short-term business loan to pay for additional construction expenses or you’re in need of a large commercial loan to purchase a new building, GoKapital can work with you to get you the funding you need.
biz2credit review

Biz2Credit - Best for Working Capital and Payroll Expenses

Min. Annual Revenue
Min. Time in Business
6 months
Min. Credit Score
Key Features
  • Borrow up to $2 million
  • Loan Repayment 12-36 months terms
  • Variable APR depending on the applicant
  • Multiple loan types available
  • Funding in 72 hours
  • Soft credit pull
Pros & Cons
  • Fast and easy application process
  • Fast disbursement of funds
  • Excellent customer service
  • Multiple documents are required
  • Strict eligibility criteria
  • May charge additional fees

Working capital loans are typically used to fund day-to-day business operations and cover short-term expenses, such as buying materials or paying crew wages. Biz2Credit offers an incredibly fast 24-hour turnaround for its working capital loans–as long as you have all of your documentation ready right away.


Main Features
With a working capital loan from Biz2Credit, you can borrow up to $2 million with a daily, weekly, or bi-monthly repayment schedule. The term length and interest rate can vary and will be discussed during the application process. To qualify for the loan, you must have a minimum credit score of 575. In addition, your construction company must be in business for at least 6 months, with annual revenue of no less than $250,000.

Without a doubt, your construction company may benefit from Biz2Credit’s incredibly fast working capital loans, known for their flexible repayment periods and varying term lengths. To speed up the process, make sure that you have all the documents ready up front, and you will see the money in your bank account within 24 hours.
Fundbox review

Fundbox - Best for Low Fee Loans

Min. Annual Revenue
Min. Time in Business
6 months
Min. Credit Score
Key Features
  • Borrow up to $150,000
  • Loan repayment 6-12 months terms
  • Interest rate 4.66% minimum
  • No monthly fees or prepayment penalties
  • Same-day or next-day funding
  • Best for business lines of credit
Pros & Cons
  • Quick application process
  • Fast turnaround
  • No monthly minimums
  • Low minimum credit score requirements
  • Payments allowed through automatic debiting
  • No hidden fees aside from interest rate
  • High interest rates
  • Short loan terms
  • Relatively small loan limit

Fundbox offers convenient business term loans that can be used for immediate construction business expenses–for example, to purchase an expensive piece of equipment or machinery. The loan application process is fairly straightforward, and you can expect to hear about the approval decision within minutes. Should you get approved, you will receive the funds as soon as the next business day. One great thing about business term loans from Fundbox is that there are no monthly minimum requirements. Instead, the repayment will be debited directly from your bank account on a weekly basis.


Main Features
With Fundbox, you can apply for a small business construction loan ranging from $1,000 to $150,000 in value. The repayment term can be either 24 or 52 weeks, with a weekly repayment schedule. The online application process is fast and easy, and the credit score requirements are fairly lenient at only 600. While you may be offered a relatively high interest rate the first time you apply, you can expect to receive a better deal with your future loan applications–provided that you quickly repay the first loan, of course.

Fundbox term business loans are known for their easy application process and quick turnaround. Don’t let the relatively high interest rates discourage you from considering Fundbox: if you manage to pay off the loan quickly, you will be offered more funds at lower rates the next time around.

Bluevine - Best for Business Lines of Credit

Min. Annual Revenue
Min. Time in Business
6 months
Min. Credit Score
Key Features
  • Funding up to $250,000
  • Interest rates as low as 4.8%
  • Loan Repayment 6-12 months terms
  • Quick and simple application
Pros & Cons
  • Fast application and fund disbursement
  • Attractive interest rates
  • Convenient online dashboard
  • Person-to-person customer service
  • Services only available for B2B companies
  • Not available in Nevada, North Dakota, South Dakota, or Puerto Rico
  • High rates for lower credit scores

As a construction company owner, you may benefit from having access to a business line of credit at all times. Luckly, Bluevine online lender offers just the right product. With lines of credit from Bluevine, you don’t need to worry about a lengthy application process or long funding decisions. You will be able to complete the application in a few minutes–and don’t be surprised to see the funds in your bank account in a matter of hours. It is worth noting that Bluevine doesn’t serve all states. Therefore, you need to make sure to review the list on their website prior to applying.


Main Features
Through Bluevine, you can apply for a business line of credit with a limit between $5,000 and $250,000 and a repayment period of either 6 or 12 months. If you carry the loan to full term, you might find that the interest rate gets expensive, so you might want to consider paying off the loan sooner. Because the line of credit is an unsecured construction business loan, it comes with little stricter qualification requirements. As such, you must have a credit score of at least 625, make at least $120,000 in annual revenue, and be in operation for at least 6 months.

To sum up, a business line of credit from BlueVine can help you significantly with the daily expenses of your construction company, at a reasonable cost–as long as you pay off the loan early.

How to Choose the Best Construction Business Loan

  • Loan features. What are the loan amounts, terms, and repayment optionality offered by the lender? Will the loan amount cover the cost of your business needs?
  • Application process. How invasive are the application information requirements? Does the approval process include a hard or soft credit check? How long does it take to complete the application and receive the funds?
  • Interest rates and fees. What interest rates are associated with the loan? Are there any additional charges, such as origination or borrowing fees?
  • Qualification process. What are the qualification requirements, such as annual revenue, minimum credit score, and minimum time in operation?
  • Customer support. Is there an in-person customer support team? Are supplemental tools and information readily available?
  • Online user reviews. What do previous customers say on independent review sites like Trustpilot?
  • Perks and bonuses. Does the lender offer a flexible repayment schedule or employ advanced technology? How transparent are they in their advertising?


Main Features of The Best Construction Business Loans

CompanyMin. Credit ScoreMin. Time in BusinessMin. RevenueLoan AmountInterest Rate
Biz2Credit5756 months$250,000$25,000 - $2 millionVariable
GoKapital5001 year$240,000$20,000 - $5 millionStart at 5%
Upstart55012 monthsN/A$5,000 to $200,000Max 35.99% APR
Fundbox6006 months$100,000$1,000 - $150,0008.33% for 24 week terms; 18% for 52 week terms
Bluevine6256 months$120,000$5,000 - $250,0000.30% - 1.50% per week (Flex6); 1.50 - 6.50% per month (Flex12)
American Express Business Line of Credit64012  monthsAverage monthly revenue: at least $3,000$2,000 - $250,000Varies (see above)
National Funding57524 months$250,000Up to $150,000Not disclosed


How Can You Use a Construction Business Loan?

These days, you can find a construction business loan for virtually any situation, whether you’re new to the industry or expanding your operations. Use the loan capital to:

  • Market your business
  • Purchase materials
  • Hire workers
  • Bid on projects
  • Buy or lease construction equipment including tools, heavy-duty machinery, and specialized software
  • Manage everyday expenses like office supplies, insurance premiums, taxes, legal fees, and salaries


How to Get a Construction Business Loan?

The specific application requirements and procedures will vary from lender to lender and from product to product. In general, to get the application process started, you will need to:

  • Estimate the costs of your construction project.
  • Review the qualifications of your business, such as its credit score, annual revenue, and time in business.
  • Compare the different types of loans for construction businesses and determine which one works better for your needs.
  • Find a lender that offers the type of loan you are looking for and has acceptable qualification requirements.
  • Collect the required documentation and complete the loan application.
  • Submit your application, sign the loan agreement, and complete the closing process.

Most of the time, to qualify for a construction business loan, you would need to have a credit score of 600 or more, a strong annual business revenue, be in business for one year or more, and be able to offer a down payment between 10% and 30%.


How Do Construction Business Loans Work?

A construction business loan is any type of loan that is used to help fund a construction business. These construction business loans can include equipment financing, lines of credit, term loans, and even business credit cards–each of them working differently.

  • Equipment financing. With equipment financing, the lender issues you a lump sum amount needed to purchase equipment for your business, and the equipment itself functions as collateral in case of default.
  • Business lines of credit. Here, the lender gives you access to a predetermined amount of funding, which you can draw from as you need. The line of credit can be secured or unsecured, and you would only need to pay interest on the funds you use.
  • Term loans. A term loan provides borrowers with a lump sum of money upfront in agreement to specific borrowing terms. As such, you would agree to a certain interest rate, repayment schedule, and other terms.
  • Business credit cards. Business credit cards can act as short-term, interest-free funding with flexible repayment options. This form of construction business loan can help you track your spending and establish a good credit history for future business loan applications.


Alternatives to Construction Business Loans

While commercial construction loans might work well to finance the needs of your construction business, they aren’t your only option.

  • Get a business credit card for smaller daily expenses, when you need the money fast. The approval time is typically short, but the rates are high, and limits are low.
  • Apply for a Merchant Cash Advance.
  • With this type of financing, you receive quick access to a lump sum in exchange for a portion of your future profits. The lender will automatically deduct a percentage of your sales through a credit or debit card until the borrowed amount is repaid in full.



We have reviewed the best construction business loans on the market today, but the ultimate decision should be based on the specifics of your business and what you need the money for. For example, if you are planning to buy essential equipment for your business, the equipment financing and leasing loan from National Funding will be your best choice. On the other hand, if you have a business growth plan you wish to turn into life, consider applying for a long-term business building loan from Credibly.

Whatever financial product you end up choosing, make sure to carefully review the terms and conditions offered by each lender. With thorough research, you will be able to find the right financial product for your construction business.

Frequently Asked Questions(FAQ)

What are the requirements for a commercial construction loan?

Even though the qualifications needed for a business construction loan will vary based on the lender you choose and the specific type of loan, you can expect to see similar requirements:

  • Credit score of at least 600
  • Strong annual revenue
  • At least one year in business
  • Ability to offer 10% to 30% down payment
How much do you have to put down on a construction loan?

Most of the time, a lender will only be willing to finance between 70% and 90% of the total cost of your construction project. Therefore, the remainder of the capital will come from the borrower in the form of a down payment.

Generally, you can expect to be asked to put down between 10% and 30% of the total cost of the construction project you wish to finance. While the exact down payment amount will, of course, vary from lender to lender, 20% down is a good average estimate.

About the Author

Tetiana Sitiugina-Babiuk

Written by: Tetiana Sitiugina-Babiuk

Independent writer and content strategist

Tetiana Sitiugina-Babiuk is an independent writer and SEO strategist helping a broad range of international clients to convey their stories for over five years.

More about me
Jen Hubley Luckwaldt

Reviewed by: Jen Hubley Luckwaldt

Content Writer and Editor

Jen Hubley Luckwaldt is an editor, writer, and content strategist with a focus on personal finance, careers, and DEI. A small business owner for over a decade, Jen helps publications and brands create and optimize B2B and B2C content.

More about me

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