Construction Business Loans

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An HVAC contractor we’d insured for three years called the office one Monday morning. He had just landed his biggest job yet: a full rooftop unit replacement on a 32-unit apartment complex. Forty commercial HVAC units, four months of work, and payment on net-60 terms. He sounded equal parts excited and panicked.

“I need to order the units this week, my suppliers want half down, payroll is Friday, and I don’t see the first check from the GC until September. My line at the bank maxed out on the last job. Tell me I have options.”

He did. Working capital to cover payroll and the supplier deposit. A rollover into AR financing once the first invoice went out to the GC. Equipment financing on the boom lift he’d been renting for years but could finally buy.

Three different products, one application, one Business Financing Advisor. The job got done. He kept his crew. He added the lift to his fleet. The bond we’d written for him years ago stayed in force. This page walks through each of the loans construction companies use most, in the order most of them get used.

How Construction Business Loans Are Different From Other Small Business Loans

Construction has cash flow cycles most industries don’t. You bid a job. You win the job. You front the materials. You pay the crew every week. You invoice the general contractor or owner. You wait 30, 60, sometimes 90 days for payment. Then you start the next bid cycle while the current job is still open.

That gap between spending and getting paid is where most construction companies get stuck. It’s also why one-size-fits-all business loans often don’t work for contractors. You need products that match how the industry actually runs: fast, flexible, and tied to how you get paid.

Through our Trusted Partner ROK Financial, Strive Insurance Group clients get access to construction financing products that fit those cycles. Not a single loan. A toolbox of them.

Construction Financing Products Through Our ROK Financial Partnership

Here are the products most construction companies use, in the order they typically come up. Start with the first one that matches your current need. A Business Financing Advisor at ROK can help you combine multiple products if your situation calls for it.

1. Equipment Financing for Construction Companies

Skid steers, excavators, directional drills, concrete saws, work trucks, dump trailers, scissor lifts, compressors, and specialty tools. If you use it on a job site, it can probably be financed.

Equipment financing is usually the first product a growing construction company uses. The equipment itself acts as the collateral, so you don’t need to pledge your shop, your home, or your receivables. That makes approvals easier and rates lower than on most unsecured business loans.

Quick facts:

– $10,000 to $5 million
– No minimum time in business (companies under 2 years capped at $50,000)
– No minimum monthly revenue
– FICO starts at 580
– Terms from 12 months to 5 years
– Low or no down payment options
– Funding in 2 to 5 business days
– 100% first-year tax write-off may be available under the new 2025 OBBBA law (see tax section below)

2. Working Capital Loans

This is the product most contractors use to cover payroll, materials, fuel, subcontractor payments, and other day-to-day costs when cash flow tightens up. Bid deposits, mobilization costs, insurance premiums, permit fees. Working capital loans fund the gap between spending money to start a job and getting paid to finish it.

Quick facts:

– $10,000 to $5 million
– 4+ months in business
– $10,000+ in monthly sales
– No minimum FICO score
– Same-day funding available
– Flexible terms
– No collateral required
– No use-of-funds limits

3. Accounts Receivable (AR) and Purchase Order Financing

This one deserves extra attention because it’s built for how contractors get paid. If you have $100,000 or more in outstanding invoices from commercial or government clients (B2B or B2G), AR financing turns those invoices into immediate cash. You use the invoices as collateral. You keep collecting payment from your customers. ROK advances you the money you need now.

Works especially well for:

– General contractors waiting on progress draws
– Subcontractors who invoice GCs on net-30 or net-60
– Specialty trade contractors with government contracts
– Mechanical, electrical, and plumbing (MEP) subs
– Site work and excavation companies

Quick facts:

– $100,000+ in outstanding B2B accounts receivable aged up to 90 days
– $500,000+ in annual gross sales
– No minimum FICO score
– Funding in 2 to 5 days
– Lower interest rates than merchant cash advances
– Terms from 6 months to 10 years
– No extra collateral beyond the invoices

4. SBA Loans for Construction Companies

SBA loans are government-backed loans issued through approved lenders like ROK Financial. They offer some of the lowest rates and longest terms in small business lending. Best for established construction companies looking to buy real estate, acquire another company, refinance expensive debt, or make a major investment that will pay off over 10 to 25 years.

The SBA 7(a) program is the most common and can be used for almost any business purpose. The SBA 504 program is built for real estate and large equipment purchases where the purchase itself serves as collateral.

Quick facts:

– $50,000 to $5 million
– 2+ years in business
– $120,000+ in annual gross sales
– FICO 675+
– Approved in 48 to 72 hours
– Funded in as little as 45 days
– Terms from 10 to 25 years
– Can refinance existing business debt
– Required documents: signed application, 6 months of business bank statements, SBA questionnaire, business debt schedule, 3 years of personal and business tax returns, prior year plus YTD P&L and balance sheet

5. Business Line of Credit

Think of a business line of credit as a safety net that refills. You get approved for a credit limit. You draw on it when you need to. You only pay interest on what you use. When you pay it back, the line becomes available again. For construction companies dealing with unpredictable cash flow between jobs or mid-job surprises, this is often the most useful ongoing product.

Use it for mobilization, change orders the owner hasn’t approved yet, unexpected equipment repairs, seasonal slowdowns, or holding over one crew while a job is on hold.

Quick facts:

– $10,000 to $5 million
– 6+ months in business
– $10,000+ in monthly sales
– FICO 600+
– Same-day funding available
– Terms from 6 months to 10 years
– Interest only on the amount you draw
– Revolving, so credit refills as you pay it down

6. Term Loans

A term loan is a lump sum paid back in fixed monthly installments over a set period. Best for established construction companies making a one-time purchase or investment where you know exactly how much you need. Buying out a partner, opening a second shop, replacing a truck fleet, making a strategic hire with a signing package, or paying off high-interest debt.

Quick facts:

– $10,000 to $5 million
– 2+ years in business
– $10,000+ in monthly sales
– FICO 660+
– Funding in 1 to 3 days
– Fixed or variable rates
– No prepayment penalties
– Monthly payments

7. Commercial Real Estate Financing

If you’re paying rent on your shop, yard, or office, there’s a good chance it would cost you less to own than to lease. Commercial real estate financing through our partnership funds the purchase, refinance, or renovation of office buildings, warehouses, yards, industrial space, and owner-occupied commercial property.

Many construction company owners use commercial real estate loans to buy the building they already work out of, which converts rent payments into equity and often qualifies for SBA 504 treatment for additional savings.

Quick facts:

– $250,000 to $10 million
– FICO 650+
– Down payment required
– Property documentation required
– Funding in 25 to 40 days
– Terms from 10 to 30 years
– Potential SBA 504 eligibility for owner-occupied property