Construction Business Loans: Best 6 Options To Consider in 2023

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%.

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.

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.

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.

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.

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.

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.