Business loans for construction companies through a broker

Construction companies borrow for equipment, for the payroll and materials that come due long before progress payments arrive, and to grow into larger contracts. A broker who knows construction places each need with lenders that understand progress billing, retainage and bonding, using equipment financing, lines of credit, construction-friendly factoring and SBA loans together.

Why construction cash flow is different

Contractors carry the cost of a job before they are paid for it. Crews, fuel, rentals and materials go out weekly; progress payments come in monthly, often late; and a slice of every payment is held back as retainage. Levelset's retainage guide says retainage typically ranges from 5% to 10% of each progress payment and is usually held until the project is substantially complete, which can mean months or longer for trades that finish early.

Slow payment carries a real cost. Rabbet's 2025 Construction Payments Report estimated that slow, inconsistent payments cost U.S. construction $299 billion in 2025, which it describes as a hidden 14% tax on the industry. The same report found 88% of respondents had declined to bid on work in the past year because of a project's slow-pay reputation.

Lenders who do not know construction see uneven bank deposits and walk away. Lenders who do know construction read the job schedule, the contracts and the work in progress report.

Equipment financing

Excavators, skid steers, loaders, trucks, trailers and lifts are the core of most construction balance sheets. Equipment financing is usually the easiest approval because the asset secures it; the Equipment Leasing and Finance Association's index put the industry average credit approval rate at 77.2% in March 2026, as reported by Monitor Daily.

Key choices:

• Buy or lease. Own long-lived iron; lease technology and attachments you upgrade often.
• New or used. Used equipment finances well when values are strong, with terms tied to age and hours.
• Seasonal payments. Some lenders offer reduced winter payments for contractors in cold climates.
• Rent to own. Converting a long rental to ownership can save money on equipment you use every week.

U.S. Bank's 2026 Section 179 summary puts the maximum deduction at $2,560,000 and notes that 100% bonus depreciation was reinstated, so purchase timing matters as year-end approaches.

Working capital and lines of credit

A revolving line of credit is the best fit for the gap between costs and progress payments. You draw when payroll and materials come due and repay when the owner or general contractor pays. Banks underwrite construction lines on your financial statements, your work in progress schedule, your backlog and your receivables aging.

Other working capital tools:

• Mobilization funding to start a new contract before the first draw
• Short-term loans for one-time needs such as a large materials order
• SBA 7(a) loans for longer-term working capital, equipment or a building, with maturities up to 10 years for working capital and up to 25 years for real estate, according to the SBA's terms page

Factoring for contractors

Factoring turns invoices into cash within a day or two. United Capital Source's comparison of providers puts typical factoring fees at 1% to 5% of invoice value per month. Construction is harder to factor than most industries because progress billings can be disputed, pay-when-paid clauses shift timing, and lien rights complicate collection. That is why many general factors decline construction outright.

Specialist construction factors do work, especially for subcontractors billing creditworthy general contractors or government projects. A broker who knows them compares advance rates, how they handle retainage and change orders, and whether they require notification to the general contractor.

Bonding and financing together

Bonding capacity limits the size of public and many private jobs you can take. Sureties look closely at working capital and debt on your balance sheet. Financing that is structured badly, like a large short-term debt that lands in current liabilities, can reduce the capacity you need to grow. A broker who knows construction asks about your surety early and structures debt so the balance sheet still supports your next bond.

What brokers who know construction do differently

Documents to have ready

• Bank statements for the last several months
• Business and personal tax returns
• Year-end and interim financial statements
• Work in progress schedule and backlog report
• Accounts receivable and payable aging, including retainage
• Copies of major contracts
• Equipment quotes or invoices
• Contractor licence and surety contact

Questions to ask a construction broker

1. Which lenders on your panel fund contractors in my trade?
2. Will they underwrite from my WIP schedule and backlog, not only bank deposits?
3. For factoring, do they accept progress billings, and how do they treat retainage?
4. How will this financing affect my bonding capacity?
5. Are seasonal or skip payments available on equipment?
6. Is there a prepayment penalty?
7. How are you paid, and by whom?

Behaviours to avoid

Contractors often need money fast when a job starts, and that urgency is when to be most careful. Walk away from anyone who asks for an upfront fee before showing an offer, who pressures you to sign the same day, or who will not share the lender's or factor's actual terms.

Find a construction finance broker

Browse construction brokers on the register to find brokerages that place equipment, lines of credit and contractor factoring. Every entry carries a register number and last checked date. You can also search the equipment financing page by state.