Best Business Line of Credit for Construction Companies

The best line of credit for a construction company is one you can draw on when you buy materials and repay when the job pays you. Merchant Fund Express, our recommended funder, fits if you need money in days and your business deposits steady sales. Bluevine and OnDeck offer online lines for contractors with a year or more in business and 625+ credit. For large contracts, the SBA 7(a) Working Capital Pilot offers lines up to $5 million, and a bank is usually cheapest if you have financial statements and collateral.

In construction the problem is almost never a lack of work. It's the gap between spending and collecting: you pay your crew every week and buy materials up front, and the general contractor pays you in 30, 60 or more days, holding back a percentage until the end. Below we compare options using each company's official site (checked October 2026).

The best options, ranked

1. Merchant Fund Express (recommended funder). For the contractor who just won a job and needs to buy materials and pay the crew before the first draw comes in. It offers $5,000 to $5,000,000, decisions often in 2 to 4 hours and credit from FICO 500; better credit and cash flow usually bring better offers. It reviews sales and deposits, not just your score, and in most cases doesn't require collateral. Applying is free, won't affect your credit, Spanish-speaking support is available and ITIN applicants are accepted (no SSN needed).
2. Bluevine line of credit. Lines up to $250,000. Published requirements: $10,000 in monthly revenue, a 625+ FICO, 12+ months in business, an LLC or corporation, no bankruptcies and good standing with the state. It accepts an SSN or ITIN along with an EIN, and it reports your payments to Experian, which helps build business credit. Useful for subcontractors with steady revenue.
3. OnDeck line of credit. Its published minimums are one year in business, a business checking account, $100,000 in annual revenue and a 625 personal FICO. It offers same-day funding if you close before a certain time and doesn't lend in North Dakota. Check its restricted industries list before you apply.
4. SBA 7(a) Working Capital Pilot. According to sba.gov, these are monitored lines within the 7(a) program, up to $5 million, for businesses with at least one year of history that can provide current financial statements and accounts receivable and payable reports, and that want to fulfill large contracts or projects. If you qualify, an SBA loan usually costs less than online options. Since March 2026, every owner must be a U.S. citizen or U.S. national.
5. Bank or credit union. A bank line usually has the lowest cost, but it asks for financial statements, sometimes audited or reviewed, and collateral. It works best for established builders with a good banking relationship.
6. Construction invoice factoring. Not a line, but it solves the same problem: you sell your approved invoices and get paid sooner. It fits contractors who bill general contractors or developers who pay late. Read invoice factoring for construction.

Quick comparison

How we chose

We don't give ratings or scores. We compare speed, minimum time in business, minimum credit, ITIN or no-SSN acceptance, documents, amounts and collateral. For construction we also look at whether the option understands progress billing and retainage. All facts come from official sites; anything we couldn't confirm, we left out. The full method is in how we rank business funding options.

When you compare lines, don't stop at the approved amount. Ask these four things in writing:

• How each draw is repaid: some online lines turn every draw into a small loan with weekly payments over several months; others, like bank lines, ask for a monthly payment on the balance.
• Fees: per draw, maintenance or for not using the line.
• Minimum draw: some require a minimum draw when the line opens or on each draw.
• Annual review: whether the lender can lower or freeze your limit when your sales change, which is common in the slow season.

The contractor's real problem: retainage and progress billing

Before you choose, understand where your cash gap comes from:

• Progress billing: you invoice in stages, and the general contractor approves and pays each stage weeks later.
• Retainage: the client keeps a percentage of every payment until the job is finished. That money is yours, but you won't see it for months.
• Materials up front: the supplier wants payment at pickup, or gives you 30 days if you have an account.
• Weekly payroll: your crew can't wait until you get paid.
• Seasonality: in cold regions, winter slows exterior work.

For example: a drywall subcontractor signs on to an apartment building. In week 1 they buy materials and start with their crew; in week 4 they bill the first stage; the general approves it in week 6 and pays in week 9, holding back a portion until the end of the job. For nine weeks, the sub paid payroll and materials out of pocket. That's the gap a line of credit covers: you draw what you need in week 1 and repay it in week 9.

A line of credit works well because you use it when buying materials, repay it when the stage is paid and have the limit available again for the next job.

Which option fits your company

• Small sub (painting, drywall, roofing, concrete) with under a year in business: online lines usually ask for 12 months. Focus on deposit-based capital and supplier accounts.
• Contractor with one or two years, an LLC and 625+ credit: compare Bluevine and OnDeck; ask for the cost of each draw and the payment frequency.
• Builder with large contracts and an accountant: the SBA 7(a) Working Capital Pilot or a bank line usually gives a bigger limit at a lower cost.
• Lots of money tied up in invoices to generals: factoring or a receivables-backed line.
• You need equipment, not working capital: a line isn't the right tool; look for term equipment financing.

To see more products beyond lines, check out the best funding for construction and our guide to a business line of credit for construction.

Documents to prepare

1. Business bank statements from the last 3 to 12 months.
2. A work-in-progress schedule: client, contract amount, billed, collected and retained.
3. An accounts receivable aging report.
4. Your contractor license and current insurance.
5. Tax returns and, for SBA or a bank, financial statements.
6. ID, EIN and your LLC or corporation documents.

The work-in-progress schedule is what convinces lenders most: it shows you have work under contract and when the money comes in.

Common contractor mistakes with lines of credit

• Using the line to buy heavy equipment. It ties up your limit for years; that's what equipment financing is for.
• Not accounting for retainage. If you plan as if you'll collect 100% at the end of every stage, you'll come up short.
• Drawing the whole limit on one job. Leave room for surprises or for starting the next one.
• Mixing personal and business accounts. It makes your sales harder to prove.
• Ignoring lien notices. If your supplier or sub doesn't get paid, they can file a lien on the project. Use the line to pay suppliers on time: protecting your reputation with generals and suppliers is worth more than a few days of interest.
• Waiting until you're out of cash to apply. Ask for the line when business is good; that's when you get the best terms. Prefer Spanish? Leer en español.