What is the best business funding for construction?

The most common options for construction are equipment financing, invoice factoring, business line of credit, business term loans. The best fit depends on your time in business, revenue, credit and what the funds are for.

Can construction get funding with bad credit?

Often yes. Revenue-based products such as merchant cash advances and collateral-backed products like equipment financing weigh revenue and assets more than credit.

How much funding can construction get?

Revenue-based providers commonly approve about 50%–150% of average monthly revenue. Term and SBA loans may go higher for established businesses.

What documents do construction need?

Usually 3–4 months of business bank statements, ID and a voided check; larger loans add tax returns and financial statements.

Industry funding

Business Funding for Construction

The most common business funding options for construction are equipment financing, invoice factoring, business line of credit and business term loans. Construction cash flow is lumpy — progress billing and retainage create gaps that lines of credit and factoring fill.

Last updated October 23, 2026

Typical funding needs for construction

Equipment
Materials for new jobs
Payroll between draws
Bonding and mobilization

Funding options compared

Comparison of business funding options (industry estimates)
Option	Amount	Term	Typical cost	Speed	Credit
Equipment Financing	$5k – $5M	2 – 7 years	6% – 30% APR	1 – 10 days	600+
Invoice Factoring	$10k – $10M	Per invoice (30–90 days)	1% – 5% per 30 days	1 – 3 days	Customer credit matters most
Business Line of Credit	$10k – $500k	Revolving; draws 6–24 mo	10% – 60% APR	1 – 7 days	600 – 680+
Business Term Loans	$25k – $2M	1 – 10 years	8% – 45% APR	1 day – 4 weeks	650 – 680+

Typical requirements

6–24 months in business depending on product
$10k+ in monthly revenue for revenue-based options
3–4 months of business bank statements
580–680+ credit depending on product

Frequently asked questions

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Funding types for construction

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Written by

BusinessFundingQuote Editorial Team

Small business finance writers

Reviewed by

Funding Review Desk

Reviewed for accuracy against current market practices

Rates and ranges on this page are typical market estimates for educational purposes, not offers. How we make money.