Loans for contractors
Quick answer
Contractors fund their businesses with five core products: equipment financing for trucks and machines, lines of credit and invoice factoring for cash-flow gaps, term loans for growth, and SBA loans for the cheapest long-term money.
Because contractors buy materials and pay crews before clients pay them, the cash-flow tools — factoring and lines of credit — matter as much as the growth loans.
Contractors run a tougher cash cycle than almost any other business. You pay out early and collect late, every job.
That shapes which financing actually helps. The best loans for contractors aren't just about growth — they're about bridging the constant gap between doing the work and getting paid.
Key takeaways
- → Five core products cover most needs: equipment, line of credit, factoring, term loan, SBA.
- → Cash-flow tools matter as much as growth loans because contractors pay out before they collect.
- → Factoring works even with thin personal credit — it's based on your clients' credit.
- → Lenders who understand progress billing are the easiest to work with.
The core financing options
For buying trucks and machines, equipment financing is secured by the asset and easy to qualify for.
For the gap between work and payment, a line of credit or invoice factoring turns earned work into usable cash. For trade-specific needs, see our contractor and trade financing guide.
How GCs and subs differ
General contractors juggle draws and payments across many subs, so lines of credit and factoring smooth the timing.
Subcontractors waiting on GCs lean heavily on factoring, since approval rides on the GC's credit rather than the sub's. Both benefit from a lender that understands construction billing.
What lenders require
Time in business, steady revenue, and acceptable credit are the basics. Secured loans add collateral; factoring shifts the focus to your customers' credit.
Have your bank statements, tax returns, a P&L, and AR aging ready — preparation is what gets contractors funded fast.
Best lenders for contractors
Best lenders for contractors
Best Overall — Same-Day Funding Across Six Loan Types Ad
Best Line of Credit for Cash Flow
Best Invoice Factoring for Contractors
eBoost Partners matches contractors to the right product across several lenders through its construction business financing, with a soft credit pull and same-day funding available.
Related guides
Construction business loans overview
All loan types and how to qualify.
Contractor & trade financing
Financing by trade — roofing, HVAC, more.
Working capital & factoring
Bridge slow-paying clients.
Equipment financing
Finance trucks and machines.
Small construction business loans
Options scaled to small firms.
Construction loan rates
Compare costs by product.