Construction Business Loans: Best 6 Options To Consider in 2024

Between purchasing heavy equipment and hiring labor crews, running a construction business is costly. Lendzi is both a direct lender and a lending marketplace with more than 75 lenders in its network. Because of this, they are able to offer multiple types of loans with varying requirements, and their mission is to help all businesses - regardless of credit - secure the funding they need.
 

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Lendzi offers three loans to those with poor credit: Merchant cash advances, equipment financing, and working capital loans. Merchant cash advances and working capital loans allow you to borrow up to $400,000 with terms up to 15 months. Equipment financing loans max out at $2 million, have terms up to 84 months, and typically come with lower interest rates than other forms of financing because the equipment acts as collateral.
To qualify for funding from Lendzi, you must be in business for six months and ideally have $180,000 in annual revenue. The minimum credit score accepted is 500.

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.

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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.

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.

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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.

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.

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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 two years, have $200,000 or more in annual revenue, and 640+ FICO score.

If you are looking to grow your construction business, a long-term business expansion loan from Credibly might offer an excellent funding opportunity at a reasonable cost. With long-term business expansion loans from Credibly, the application process should take minutes and you can expect to hear back in just a few hours. If approved, you can sign the contract on the same day and receive the funds in one to two business days.

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Long-term business expansion loans are offered for a period ranging between 18 and 24 months. The loan value can range up to $250,000, and the funds should be used specifically to help you grow your construction company. As such, a detailed business plan is required as a part of your application. While the required time in operation is not disclosed, it is unlikely that a brand-new business will qualify.

If you’re not sure what type of construction loan you need, SMB Compass can help. The lender offers nine different products, including business lines of credit, SBA loans, business term loans, equipment financing, asset-based loans, and more. Representatives are available M-F to answer your questions and walk you through the application process. By doing that, you can together determine the best construction loan for your business. Qualifications tend to be a bit stricter than other lenders, including a minimum credit score of 650 and $20,000 or more in monthly revenue, but if you qualify, you’ll get a competitive rate, flexible term, and large loan amount.

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SMB Compass offers nine different types of small business construction loans to borrowers. Their mission is to make loans more accessible to small business borrowers by providing cost-effective and flexible lending solutions. SMB Compass business loans range from $10,000 to $10 million with terms up to 25 years. Rates start at 7.99% for qualified borrowers. The lender has currently provided more than 1,200 U.S. businesses with more than $250 million in financing. To apply, simply fill out their easy online application. It takes just a few minutes and will not impact your credit score. If approved, funding can be dispersed within 24 hours.

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.