Construction Business Loans
Build your business from the ground up with construction financing.
The construction industry is capital intensive. When you’re working on a new project, you’ll likely need thousands of dollars’ worth of materials to get the job done. You may even need to purchase new equipment or hire more workers, depending on the scope of the project.
These initiatives will require a substantial amount of working capital. However, construction business owners are all too familiar with the challenges of securing additional cash at a moment’s notice.
At 1West, we make it simple for you.
We understand that qualifying for a loan hasn’t always been easy for small business owners. This is why our entire application process is fully automated and will only require a few minutes of your time. We’ll help you discover the best loan option for your growing business.
Most Common Uses of Construction Business Loans
You can use construction business loans to fund almost any business purpose. Here are some of the common ways our clients have used a construction loan:
Pay for Daily Operational Expenses
Day-to-day expenses, such as construction fees, office supplies, legal fees, and payroll, are just some of the costs that construction business owners need to pay for each week or month. A construction business loan can help keep your projects running smoothly. With access to enough cash, you won’t have to slow down your operations or cut major costs just because you don’t have enough capital.
Start or Grow Your Construction Business
If you’re looking to start or grow your business, you definitely need an influx of working capital. New companies need cash to purchase equipment and materials, hire field workers and in-house employees, bid on projects, and market their business to potential customers.
On the other hand, if you’re looking to expand your growing business, construction financing can help accelerate your growth. You can use the extra cash to upgrade your equipment, expand your market reach, hire more employees, and take advantage of the growth opportunities presented to you.
Buy or Lease Construction Equipment
Depending on the project you’re handling, construction companies need several heavy-duty machinery and equipment to operate. Some of the equipment you’ll need are backhoes, bulldozers, excavators, asphalt pavers, motor graders, and more. You’ll also need office supplies, bookkeeping software, and other tools essential in running a construction business.
Construction loans can give you the financial resources you need to replace the necessary tools and equipment to keep your business running. These loans can help fill cash flow gaps and continue working on the projects you’re handling.
Hiring Construction Workers
Hiring, training, and retaining competent employees can be expensive. But when you’re taking on additional projects, you’ll need to hire more workers to get the job done. You can use a construction business loan to pay for the costs associated with hiring, training, and retaining employees.
Hiring Construction Workers
Hiring, training, and retaining competent employees can be expensive. But when you’re taking on additional projects, you’ll need to hire more workers to get the job done. You can use a construction business loan to pay for the costs associated with hiring, training, and retaining employees.
Capitalizing on Business Opportunities
Business opportunities such as discounted equipment, buying items in bulk, or closing five more deals can help your business grow and expand. Relying on cash flow alone or seasonal invoice payments may not be enough to capitalize on these moments.
Regardless of what your company needs, a construction loan allows you to take advantage of growth opportunities that are too good to pass up.
The Best Construction Loans for Your Business
Working Capital Loans
For many small construction companies, projects are often seasonal throughout the year. Working capital loans can help you navigate through cash flow gaps and use the money to cover payroll, utilities, and other day-to-day costs. These loans can also help you gather enough cash to prepare for a new project, like buying raw materials, hiring people, and more.
Working capital loans are short-term financing solutions, which means these loans have shorter repayment terms that are typically repaid within a few months or up to two years. The turnaround time for working capital loans varies from lender to lender.
SBA Loans
The U.S. Small Business Administration (SBA) saw that small businesses were underserved in terms of access to financing. This is why they created the SBA loans to help small business owners, including construction companies, secure bank-rate financing by guaranteeing up to 85% of the loan. This guarantee means that lenders are more willing to do business with small businesses considering they’re getting a portion of their money back even if the borrower defaults on the loan.
SBA loans are one of the most popular options for small businesses because these loans have longer repayment terms, higher loan limits, and lower interest rates compared to other loan types.
Equipment Financing
Equipment financing is perfect if you’re looking for a loan specifically for equipment purchases or leases. This loan gives you the finances you need to purchase heavy equipment, software, vehicles, and even furniture and fixtures.
Equipment financing is often structured as a term loan, so this means you’ll be able to pay for these purchases over time rather than a one-time payment. Taking out a huge chunk of cash from your capital can easily put a dent in your cash flow.
Business Lines of Credit
A business line of credit is the best financing option if you’re looking for flexible funding. It’s structured like a credit card, so lenders will give you a credit limit that you can withdraw from any time. You don’t have to use the money all at once; instead, you can use it as needed. Additionally, you only need to repay the money you’ve withdrawn, plus interest – but not the entire credit limit. Your credit line goes back up to its original limit after repaying your debt.
Apply for a Loan with 1West
Construction companies know that securing additional working capital to fund growth and expansion efforts can be frustrating. Traditional lending companies like banks and credit unions are often hesitant to extend money to small businesses, especially in the construction industry.
At 1West, we’re familiar with the struggles small business owners face, so it’s our goal to make financing as simple as possible. No need to submit mountains of paperwork or wait for months to hear back from your lender.
Quick Access to the Money You Need
At 1West, we’re familiar with the struggles small business owners We make sure that you’ll receive the working capital you need quicker than traditional lending companies. We connect with more than 50 lenders in our marketplace to help you get the right construction loan for your business. Approval only takes 24 to 48 hours and funding will soon follow!
Full Transparency
At 1West, we’re familiar with the struggles small business owners We make sure that you’ll receive the working capital you need 1West promises full transparency with all your transactions. You’ll always know where you stand with us.
How to Apply for a Construction Business Loan with 1West
We make construction financing simple.
Create an account. We like to keep things simple, so everything is fully automated. The application process will only take a few minutes of your time.
Choose a loan. Choosing the right loan can be overwhelming, given the number of options to consider. You can use our product wizard to help you decide on the best construction financing.
Apply and compare loans. We will then submit your application to our lending partners and expect several offers from a single application. Aside from our product wizard, our lending experts will be with you every step of the way to ensure that you’re always putting your best foot forward.
Apply for Construction Financing with 1West
At 1West, we make sure to provide the best construction business loan suitable to your company’s goals and objectives. We work with more than 50 lending partners, so you can easily compare rates, terms, and products that fit your needs.
Apply for construction business loans today!
We help you through the whole process.
You don’t have to go through it alone.
Call us anytime (888) 881-WEST
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FAQS (Frequently Asked Questions)
How hard is it to qualify for a construction loan?
Construction business loans are typically quite difficult to qualify for. Lenders usually require a high credit score, a strong business plan, and a significant amount of collateral. They also typically have shorter terms than other types of loans, which can make them more expensive in the long run.
That being said, construction business loans can be an important source of financing for small construction businesses. They can be used to build new facilities or to renovate existing ones. Moreover, they offer a good way to finance a large construction project. For these reasons, construction loans can be a good option for construction businesses that are looking to grow or expand their operations.
How do I get a construction business loan?
Applying for construction business loans is pretty much similar to getting any other types of business loans. So although there are variations (these will depend on the lender you choose), the steps you need to take are basically the same:
- Gather all of the required documentation. These include financial statements, tax returns, and other information about your construction business. Lenders will use this information to assess the risks associated with the loan.
- Shop around for lenders that offer great loan terms. There are many lenders who offer construction business loans, so it is important to compare rates and terms before choosing one. It is also helpful to speak with other construction companies or contractors to see if they have any recommendations.
- Submit your application to your chosen lender. They will likely ask for additional information such as a construction business plan or personal guarantee. But once the application is approved, the funds will be disbursed and you can begin using them to grow your business.
Is a construction loan a good idea?
When it comes to construction business loans, there are a few things you need to know before deciding if one is right for you. For example, construction loans are typically short-term loans. Because of this, they usually have higher interest rates than traditional mortgages.
Construction business loans also tend to be more expensive because they often require two separate loan closings: one for the construction phase and one for the mortgage. In addition, construction loans usually have higher down payment requirements than traditional mortgages. So before you decide if a construction loan is right for you, be sure to do your research and understand all of the risks and costs involved.