Construction Business Loans

Low rate funding for construction companies, contractors, and skilled specialists.

No prepayment penalties and transparent loan terms.

Up to $10M working capital within 1 to 2 days

Both secured and unsecured funding options

Flexible payment schedule

6-month to 24-month loan terms

Best Business Loans for Contractors & Construction Companies

Running a construction business can be capital-intensive. You have to purchase and repair construction equipment, hire employees to scale, and market your services to get customers. It all requires consistent cash flow to succeed.

That's where Wize can help — we provide funding capital to construction companies to help them operate at full strength. You have better things to focus on than worrying about seasonal cash flow fluctuations. We've got you covered.

We're committed to helping contractors pursue the American dream. Whether your business specializes in large-scale construction projects or smaller residential renovations, we can provide the financing to keep moving forward.

Benefits of Construction Loans

The new construction and renovation markets are booming. That has led to growth opportunities for builders, general contractors, and specialists like electricians and plumbers. But with seasonal consumer needs, having access to working capital is more important than ever.

Even during busy seasons, businesses can use commercial construction loans for supplies, payroll, and general operational expenses. There are various loan programs to suit your needs.

No personal guarantee needed

Unsecured construction loan lenders at Wize have no collateral requirements. We specialize in the financial needs of small businesses nationwide.

On-demand approvals

Get funded within 24 hours of applying for a loan. Whether you have good or bad credit, we can help you secure funding quickly. As a business owner, time is precious. You shouldn't have to spend days or weeks working with lenders to get capital.

Buy your own equipment

Many construction companies end up using subcontractors due to a lack of equipment. With an equipment loan, you can purchase equipment to make more money in the long run.

Grow your team

The only way to truly grow your enterprise is by hiring more staff. When opportunities outpace your workload, it's time to expand your team. Use a working capital loan to hire crew members until the new jobs start paying.

Flexible financing

Access to capital in times of need is key to the survival of contractors and construction businesses. Our loan products allow you to borrow quickly on demand with flexible payment terms.

Full transparency

What you see is what you get. There are no hidden fees and mumbo-jumbo you can't understand. We strive to keep lending simple, concise, and honest. You get a dedicated adviser assigned to guide you throughout the process.

The 5 Best Loan Options for Contractors

With multiple business financing products lenders offer, borrowing money can be an overwhelming experience. We've funded thousands of construction business owners.

Here are the types of loans that work best for small business owners in the construction industry:

1. Short Term Loans for Construction Companies

Short-term loans are a traditional financing option with no collateral for contractors. A lender provides a fixed lump sum with a specified interest rate that you pay back to the lender based on set repayment terms.

Advantages of short-term loans:

✓ Quick funding within 1 to 2 days

✓ No collateral needed to secure a loan

✓ Both good and bad credit scores can get approved

↳ Learn More About Term Loans

2. Business Line of Credit for Construction Companies

Think of a business line of credit as being similar to how credit cards work (with lower interest rates than credit cards). You are approved for a credit limit by a lender with a specified APR. You only pay interest on the amounts of funds you withdraw from your total credit line, just like a credit card.

Advantages of line of credit:

✓ You only pay interest on funds you use

✓ Always available to use when a need arises

✓ Improves your personal credit score in the process

✓ No penalty for prepaying the balance

↳ Learn More About business lines of credit

3. Equipment Loans for Construction Companies

Equipment is the lifeline for all construction business owners. Contractors are always buying or repairing existing ones. With
equipment financing, the lender gives you 100% of the loan amount to purchase your equipment. The equipment serves as the collateral needed for the loan. The structure is very similar to getting an auto loan with monthly payments.

Advantages of equipment financing:

✓A good credit score isn't a requirement (since the equipment serves as collateral)

✓ Minimal paperwork needed

✓ Competitive loan APRs

↳ Learn More About Equipment Loans

4. SBA 7(a) and Microloans for Construction Companies

As the holy grail of small business loans, SBA loans are partly backed by the federal government. While interest rates for SBA loans are low, the process of getting one is long and full of lengthy paperwork. Your credit score also needs to be in good shape to get approved. We help construction business owners secure SBA loans if their capital needs are further out into the future.

Advantages of SBA loans:

✓ Backed partially by the U.S. Small Business Administration (SBA)

✓ Competitive interest rates

✓ Can be used for any working capital needs

✓ Long loan terms

↳ Learn More About SBA Loans

5. Invoice Financing / Factoring for Construction Companies

Contractors are accustomed to having multiple outstanding invoices that are in the process of getting paid. If that's the case for you, invoice factoring lets you get up to 100% of the invoice value from a lender. Factoring is primarily only for business-to-business (B2B) companies. So if your services are geared towards consumers, opt for a short-term loan or business line of credit instead.

Advantages of invoice factoring:

✓ Instant access to capital without waiting for customers to pay

✓ Invoices serve as collateral -- no personal guarantee needed

✓ Approval is based on the credit rating of your customer

↳ Learn More About Invoice Financing / Factoring

FAQs about Construction Business Loans

Getting access to funding fast is the best news for your business, and you want to know more. Here are the answers to common questions about construction business loans from owners like yourself.

How hard is it to get a construction loan?

The level of difficulty is impacted by what avenue you pursue funding. Traditional banks often have stricter requirements and are paperwork-heavy, which can slow things down. The application process tends to be simpler and faster when you go through online lenders. See how to get a fast business loan with Wize Funding!

What are the requirements?

Eligibility factors include credit scores, time in business, and company revenue. Credit score is usually the main component considered, although borrowers with all types of credit can be approved.

How can I get a construction loan with no money down?

Lenders have different factors they use to determine how much capital is needed for a down payment. Although this amount varies, a 20% deposit is common. If you prefer funding with no money down, speak to an adviser at Wize to discuss your options.