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Construction Financing Options at a Glance
Construction businesses have more financing options than most — and the right one depends on what you need the money for and how fast you need it. Here’s a quick comparison:
|
Loan Type |
Best For |
Repayment Term |
Min. Credit Score |
|---|---|---|---|
|
Equipment, expansion, large purchases |
6-48 months |
500 |
|
|
Payroll gaps, materials, day-to-day cash flow |
Revolving |
500 |
|
|
Heavy machinery, trucks, tools |
2-5 years |
500 |
|
|
Unlocking cash from unpaid invoices |
Per invoice |
N/A |
|
|
Operating expenses between projects |
3-24 months |
500 |
All products subject to approval. Rates and terms vary based on your business profile.
How Construction Business Financing Works
Construction businesses operate on a cash flow cycle unlike most other industries. You win a contract, purchase materials, hire subcontractors, pay your crew — and then wait. Progress billing timelines and final payment delays can stretch weeks or months, creating gaps that put real pressure on daily operations.
Think about what that looks like in practice: you sign a $400,000 commercial contract in January. Materials are due in February. Your first progress draw doesn’t arrive until March — maybe April. Your crew gets paid every Friday regardless. That gap is where construction businesses get into trouble, and it has nothing to do with how good you are at your job.
SBG Funding offers financing built for those realities. Fast approvals, flexible structures, and amounts from $5,000 to $1,000,000. Whether you need a lump sum to purchase equipment, a revolving line to manage cash flow between projects, or invoice financing to stop waiting on slow-paying clients, we have options for contractors at every stage — commercial and residential.
Unlike traditional bank loans, SBG Funding does not require collateral, does not perform a hard credit pull, and does not require you to wait weeks for a decision. Most applications are reviewed the same business day.
Why Contractors Choose SBG Funding Over a Bank
Traditional banks weren’t built for the construction industry’s cash flow cycle. Weeks-long approval processes, rigid collateral requirements, and credit score cutoffs that ignore revenue reality leave most contractors without options when they need capital fast. SBG Funding was built differently.
SBG Funding
Traditional Bank
Financing Solutions for Every Construction Phase
The right financing depends on where you are in the project cycle.
Pre-Construction
Before breaking ground, you need capital for permits, bonding, insurance, materials deposits, and mobilization costs. A business term loan or working capital loan gets funds in place before the first shovel turns — so you’re not scrambling once work begins.
During Active Construction
Day-to-day costs — crew payroll, material deliveries, subcontractor payments — don’t wait for milestone billing. A business line of credit gives you revolving access to funds so you can draw what you need, when you need it, and only pay interest on what you use.
Post-Completion
Waiting 30–90 days for final payment while your next project is already starting? Invoice financing unlocks up to 100% of outstanding invoice value immediately — so you’re not personally financing your client’s slow payment schedule.
What Contractors Use Business Loans For
Construction financing is flexible. Here are the most common ways contractors put it to work.
Equipment Purchases
Excavators, cranes, forklifts, and heavy machinery are among the largest capital outlays a construction business makes. A term loan or equipment financing lets you acquire what you need without draining working capital.
Payroll Between Projects
Your crew gets paid every week — your clients don’t. A business line of credit gives you revolving access to capital so payroll is never in question while you wait on progress billing or a final draw.
Materials and Supplies
Lumber, concrete, steel, and specialty materials often need to be purchased before any payment arrives. Financing lets you front the materials, start on schedule, and stop absorbing your client’s cash flow pressure.
Subcontractor Payments
Subs expect payment on their terms — not your client’s timeline. Financing bridges that gap so projects stay on schedule and subcontractor relationships stay intact.
Bonding and Insurance
Commercial and government contracts often require performance bonds and specific coverage levels before work begins. Financing covers those upfront costs so you can qualify for larger, more profitable contracts.
Business Expansion
Growing in construction means capital for additional crews, fleet vehicles, upgraded equipment, or the runway to bid larger projects. A business loan lets you scale without waiting for current projects to pay out.
All You Need to Qualify
$250K+
annual revenue
500+
min. FICO score
6+
months in business
4
bank statements
No collateral. No hard credit pull. No upfront fees.
SBG Funding evaluates more than 50 factors when making lending decisions — including revenue history, deposit consistency, and time in business. Construction companies with strong cash flow may qualify even with an imperfect credit score.
What Contractors Are Saying
Real contractors. Real results.
Unlimited Concept — Funded by SBG Funding
Unlimited Concept is a general contracting company that needed fast working capital to cover crew costs and materials between project draws. SBG Funding reviewed their application the same day and delivered funding within 24 hours — letting them keep the job on schedule without touching their personal finances.
★★★★★
“I own a small veteran owned construction company. This was the easiest company to work with when applying for a loan. Anthony made it very easy to build rapport with, making this process the smoothest I’ve had to do when dealing with financial institutions.
Eric K. from California
via Trustpilot
★★★★★
“All business owners realize that cash flow is king and in the construction industry it’s everything. Frank with SBG helped me secure working capital for my business. Frank answered all of my questions, took full control of getting everything through the underwriting department and made my experience seem effortless.”
Lee B. from New York
via Trustpilot
Just 3 Steps to Get Funded
01
Apply Online
Complete our quick online application in about 5 minutes. Basic information about your business and financing needs — no lengthy paperwork to get started.
02
Get Your Options
Our team reviews your application and presents loan options matched to your business profile. We look at revenue, deposit history, and time in business — not just your credit score.
03
Receive Your Funds
Once approved and documents are signed, funds can be in your business bank account in as little as 24 hours.
Frequently Asked Questions
-
Can I get a construction business loan with bad credit?
SBG Funding requires a minimum FICO score of 500. Credit score is one factor among many — strong revenue, consistent bank deposits, and solid time in business can all support your application.
-
How quickly can I get funded?
After approval and document submission, funds can be available in as little as 24 hours. The online application takes about 5 minutes, and most applicants receive a decision the same business day.
-
Do I need collateral for a construction business loan?
No. SBG Funding’s construction business loans are unsecured — you are not required to pledge equipment, real estate, vehicles, or other assets. Equipment financing is an exception: the equipment itself serves as collateral, which is standard across the industry.
-
What’s the difference between a term loan and a line of credit for construction?
A business term loan provides a lump sum upfront, repaid on a fixed schedule — best for one-time purchases like equipment or a large materials order. A business line of credit is revolving — draw what you need, repay it, and draw again — best for ongoing expenses like payroll and materials across multiple projects.
-
Can I use a construction loan to purchase heavy equipment?
Yes. Both business term loans and equipment financing can be used to purchase heavy equipment, trucks, tools, and machinery. Equipment financing often supports larger amounts and longer repayment terms for major purchases.
-
Will applying affect my credit score?
No. SBG Funding does not perform a hard credit inquiry at any point during the application or approval process. Applying will not impact your personal or business credit score.
-
What types of construction businesses qualify?
SBG Funding works with general contractors, subcontractors, and specialty trade contractors — including electrical, plumbing, HVAC, framing, concrete, roofing, landscaping, and renovation businesses. Commercial and residential contractors both qualify. As long as your business meets the basic requirements — 6+ months in business, $250K+ annual revenue, 500+ FICO — your specific trade does not affect eligibility.
-
Can I get financing if my construction business has seasonal revenue?
Yes. SBG Funding evaluates your overall revenue history, not just your current month. Contractors with seasonal cash flow — common in northern climates, outdoor trades, or commercial construction tied to project cycles — can still qualify based on annual revenue and deposit consistency across the year.
-
Can I use a construction business loan to hire more employees?
Yes. There are no restrictions on how you use working capital financing. Many contractors use business loans to bring on additional crew members for a large project, cover payroll during a ramp-up period, or fund the labor costs of expansion into a new market or trade.
-
How is SBG Funding different from a bank?
The primary differences are speed, flexibility, and qualification criteria. Banks typically require 2–8 weeks for approval, collateral, a hard credit pull, and often a FICO score above 680. SBG Funding makes same-day decisions, requires no collateral, performs no hard credit inquiry, and accepts FICO scores of 500+. We evaluate more than 50 factors — including your revenue history and deposit patterns — rather than relying primarily on credit score.
-
What documents do I need to apply?
To get started, you need your 4 most recent business bank statements. For larger loan amounts, we may also request business tax returns or additional financial documentation. No lengthy business plan or audited financials are required to begin the process.
-
Can I apply for additional financing if I already have a loan with SBG Funding?
Yes. Many SBG Funding clients renew or expand their financing as their business grows. If you have an existing loan in good standing, you may be eligible to apply for additional financing. Contact your funding specialist to discuss your options.
Ready to Grow Your Construction Business?
Whether you need to cover payroll between projects, purchase equipment, or take on a larger contract, SBG Funding has construction financing designed for how your business actually works. Apply online in minutes — no collateral, no hard credit pull, no obligation.
