Business funding for construction companies and contractors
Reviewed by Turan Zeynal, Managing Partner, Outset Funding Partners ·
General contractors, subs, and specialty trades typically need capital between draws — for materials, payroll, and mobilization on new jobs. A business line of credit at 8–25% APR is the ideal fit when you qualify. When speed or credit is the constraint, revenue-based funding delivers $10k–$500k in 24–72 hours against your job receivables.
Quick facts
- Typical amount
- $25k – $1M
- Line of credit APR
- 8% – 25%
- Working capital speed
- 24 – 72 hours
- Min monthly revenue
- $15,000
- Time in business
- 12+ months typical
- Best fit
- Business LOC, working capital, equipment
The 60-second answer
Construction is one of the hardest industries to keep cash-flow positive. Materials are due on delivery. Payroll runs every week. But progress payments and final draws can be 30, 60, sometimes 90 days out. Even profitable GCs and subs need a working capital source that bridges the gap.
The default answer is a business line of credit — draw only what you need, only when you need it, and pay interest on the drawn balance. When time or credit closes that door, revenue-based capital and equipment financing keep jobs moving.
Pros and cons
- ✓LOC only charges interest on drawn balance — perfect for lumpy cash flow
- ✓Equipment financing at competitive rates for trucks, tools, and heavy equipment
- ✓Working capital funds in 1–3 days when a job needs materials this week
- ✓Can qualify without perfect credit if revenue is strong
- ✓Reusable capital lets you take on the next job without cash-flow stress
- ×Traditional banks are slow — often too slow for job timing
- ×MCA is expensive on thin-margin jobs — use with intent
- ×Personal guarantee typically required on smaller facilities
Who qualifies
- •GCs, subs, electricians, plumbers, HVAC, roofers, concrete, framing, landscaping
- •$15,000+ in monthly revenue
- •12+ months in business (best pricing at 2+ years)
- •US-based, licensed and insured
- •550+ FICO for working capital; 650+ for a LOC
Frequently asked questions
Do I need to be bonded to get a business line of credit?
No — bonding matters for winning the job, not for getting a general business LOC. Some project-specific financing does look at bonding capacity.
Can I get funding for a specific project?
Yes. Project-based funding, PO financing, and mobilization loans are all available. Most operators find a general LOC or working capital more flexible because they can deploy it across multiple jobs.
What about businesses under 12 months old?
Newer contractors with 6+ months of revenue history can typically access working capital, just at higher pricing. LOC and traditional loans usually require the 12-month mark.
Can I finance a used excavator or Bobcat?
Yes. Equipment financing covers used heavy equipment, typically up to 10 years old. Terms of 4–6 years are standard.
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