Construction: business funding
Contractors pay for materials, labour and equipment up front, then wait on progress draws and holdbacks. Most construction funding is about bridging that gap without overpaying for it.
- One application, several lenders
- No credit pull to see your options
- No fee to you, ever
Common funding needs
- Buying materials for a job before the first draw
- Making payroll while waiting on progress payments or holdbacks
- Buying or replacing equipment, tools and trucks
- Taking on a larger contract than usual
What usually fits
Products that usually fit
- Line of credit for materials and payroll between draws.
- Equipment financing for excavators, lifts, trucks and tools.
- Invoice factoring for commercial work billed to other businesses.
- Term loan for a planned expansion.
Compare term loans, lines of credit, cash advances and equipment financing side by side →
Illustrative example
A worked example
A contractor draws $50,000 on a line of credit to buy materials for a job and repays it when the progress payment arrives 3 months later. At an illustrative 10–20% a year, simple interest for those 3 months is about $1,250–$2,500, and the limit is available again for the next job.
The same need met with a short-term advance at an illustrative factor rate of 1.20 would cost $10,000, whether the money is used for 3 months or 9.
Illustrative example only, not an offer or a quote. Rates, fees and terms are set by each lender and depend on your business. Fees are not included unless stated.
Underwriting
What lenders look at
- Monthly deposits over several months, including how lumpy they are
- Contracts in hand and who the customers are
- Holdbacks and receivables owed to you
- Workers' compensation coverage and tax accounts in good standing
- Owner credit and time in business
Honestly
Who this is not for
- A new contractor with no completed jobs or deposits yet
- Funding a job that is already losing money
- Borrowing short-term, expensive money for a job that will not pay for months: match the term to how long you wait
If borrowing does not make sense, we will say so.
Are you a match?
Lender network minimums
Close but not quite there? Apply anyway and we will tell you honestly what is possible.
*Best available terms from lenders in our network. Every lender sets its own criteria; approval, amount and funding time are decided by the lender and not guaranteed.
| Time in business | 1 year+ |
|---|---|
| Monthly revenue | $15,000+ |
| Credit score | 500+ |
| Bank account | Business |
| Fee to you | $0 |
| Credit pull to start | None |
FAQ
Construction funding questions
Can I get funding with holdbacks outstanding?
Often, yes. Lenders look at your deposits and your receivables. Holdbacks owed to you can help show money is coming.
Do lenders ask for workers' compensation clearance?
Some do, especially for construction: WSIB in Ontario, CNESST in Quebec, WorkSafeBC and WCB-Alberta, for example. Having it ready speeds things up.
Is factoring available for construction invoices?
For some commercial work, yes. Progress billing and holdbacks make construction factoring more specialised; not every factoring company does it.
Can I finance used equipment?
Some lenders finance used equipment and private sales. Tell us what you are buying and from whom.
See your options
Two minutes, no credit pull, no fee. We come back with real options from lenders that fit.