Projects require capital upfront — materials, labor, equipment — but client payments arrive weeks later. Bridge that gap with same-week funding built for contractors.
Construction and contracting businesses face a specific challenge: clients pay on 30, 60, or 90-day terms while subcontractors, material suppliers, and crew need to be paid immediately. Our lenders understand the construction business model and fund accordingly — faster approvals and more flexible terms than traditional banks.
Construction businesses operate on a fundamentally different cash flow rhythm than service businesses. Customers pay on milestones (deposit, framing, finishing, completion) or net-30/45/60 invoicing on commercial work. Suppliers want payment up front or net-15. Labor wants payment weekly. The mismatch — suppliers and labor outflow before customer inflow — means contractors structurally need working capital, especially during growth and on large jobs.
The funding market has specialized products for this. Invoice factoring works for commercial contractors with strong B2B AR. Mobilization loans fund the first phase of large jobs before progress payments arrive. Equipment financing is heavy in the industry (trucks, excavators, cranes). And for established general contractors, SBA 7(a) and lines of credit secured by AR or equipment fit specific use cases. MCAs and working capital loans cover the gap for sub-prime contractors and short-term needs.
| Product | Fit | Notes |
|---|---|---|
| Invoice Factoring | Best for commercial | B2B contractors with net-30/45/60 commercial invoices. 80–90% advance, 1.5–3% monthly on factored amount. |
| Mobilization / Project Finance | Niche but powerful | Funds the first 20–30% of project costs before progress payments. Specialty product from construction-focused lenders. |
| Equipment Financing | Standard fit | Trucks, excavators, skid steers, lifts, generators. 8–15% APR. Equipment-secured. |
| SBA 7(a) | For established only | Acquisitions, real estate, fleet expansion, working capital combo. 9.75–13.25% APR. 3+ years TIB, 680+ FICO. |
| Line of Credit | Established with collateral | Asset-based LOC against AR + equipment. 10–18% APR. Best for contractors with $1M+ revenue. |
| Working Capital MCA | For sub-prime / speed | Bridge funding for materials, payroll, mobilization. 1.25–1.40 factor. Funds 24–72hr. |
The 6 most common capital deployments we see in construction & contracting businesses, with the funding product that fits each.
Materials, labor, equipment rental, bonding for $500K+ project. Mobilization loan or factoring against the contract value.
New work trucks, dump trucks, excavators, skid steers. Equipment financing at 8–15% APR.
Moving from $500K to $5M general liability + bonding. Premiums + reserves required. Term loan or LOC.
$300K–$3M acquisition. Common in trades (HVAC, plumbing, electrical). SBA 7(a) for cheapest.
Customer approves change order; payment lags 30–60 days. LOC if pre-approved; factoring if AR-based.
Property purchase for fleet operations. $400K–$3M. SBA 504 for cheapest fixed-rate financing.
Beyond the standard credit + revenue + time-in-business thresholds, construction & contracting businesses face industry-specific underwriting variables.
Depends on the use case. For working capital cycles: invoice factoring (commercial) or LOC (established). For equipment: equipment financing. For growth or acquisitions: SBA 7(a). For emergencies/speed: MCA. Most contractors end up with 2–3 different funding products in their stack — equipment financing for fleet, factoring or LOC for working capital, term loans for occasional larger needs.
Yes for B2B commercial work with traditional invoicing. Factoring lenders advance 80–90% of approved invoices within days, charging 1.5–3% per month on factored amount. Best for general contractors invoicing commercial property owners or other GCs. Doesn't work well for residential contractors who collect via deposits + progress payments rather than net-30 invoices.
Equipment financing: up to equipment value, $15K–$500K per piece. Factoring: up to AR balance, scales with invoicing. LOC: $50K–$1M+ for established contractors. SBA 7(a): up to $5M. Working capital MCA: $25K–$300K (capped at ~1 month revenue).
Equipment financing is collateralized by the equipment. Asset-based LOCs are collateralized by AR + equipment. SBA loans take available collateral up to loan amount. Working capital MCAs are unsecured but require personal guarantee. Factoring is technically unsecured to the contractor (the customer's payment is the security).
Yes. Invoice factoring is the most credit-tolerant option (often funds down to 500 FICO if customers are strong). MCAs fund down to 580. Equipment financing typically requires 600+ but specialty lenders go to 540 with larger down payments. Below 500, options are very limited.
A specialty product that funds the first 20–30% of project costs before progress payments arrive. Typically structured against a signed contract value. Available from construction-specific lenders (BlueVine had a product, several others) and through factoring lenders that offer "spot factoring" against future invoices. Rates 1.5–3% per month on advanced amount.
Equipment financing typically funds in 2–7 business days. Strong-credit borrowers with established lender relationships can fund in 24–48 hours. Manufacturer captive finance arms (Caterpillar Financial, John Deere Financial) often fund fastest because they're already underwriting the deal.
Yes, if you can demonstrate the SBA loan reduces total debt service by 10%+ and/or extends maturity. Common targets: high-cost MCAs, expensive working capital lines, balloon-maturity bank debt. SBA 7(a) for refinancing typically takes 60–90 days, so plan ahead of MCA payoff dates.
Three editorial picks based on our 72-lender review of operators who actually fund this industry well. Each profile carries our full scoring methodology and comparison data.