How to get a construction loan

Most contractors who get turned down didn't fail to qualify. They applied for the wrong product, or showed up without their paperwork.

Getting a construction loan is mostly about preparation and aim. Do those two things and the process is straightforward.

Step 1: Decide what the money is for

This single choice points you to the right product and rules out the wrong lenders. Buying a machine means equipment financing; covering a cash-flow gap means a line of credit or factoring; funding a build means a construction loan.

See the full menu in our construction business loans guide.

Step 2: Gather your documents

The contractors who fund fastest are simply the ones with their paperwork ready. Pull two years of business and personal tax returns, three to six months of bank statements, a current P&L, and an accounts-receivable aging report.

For equipment loans, add the quote or invoice. Our requirements guide has the full checklist.

Step 3: Check your eligibility

Know roughly where you stand on credit, time in business, and revenue. That tells you which products are realistic — equipment and factoring are the most reachable; banks and SBA are the strictest.

Step 4: Compare offers

Get quotes from two or three lenders and compare on more than the rate — term, fees, funding speed, and structure all change your real cost. Use a soft pull so shopping doesn't ding your credit, and check the rates page for context.

Step 5: Apply and fund

Submit to your chosen lender, respond quickly to document requests, and you'll move from approval to funding fast. A marketplace can reach several lenders with one application.

eBoost Partners matches contractors to multiple lenders with a soft credit pull and same-day funding available through its construction business financing.