The best term loans for construction companies are: Merchant Fund Express, if you need capital fast and you get paid in draws; OnDeck, if you have a year in business and a 625 credit score; Accion Opportunity Fund, if you've been operating 2 years and want up to 36 months to repay; the SBA 7(a), for large amounts if every owner is a citizen; Bluevine as another online offer; and equipment financing if the money is for a machine.
In construction, money goes out before it comes in: you buy materials, pay your crew and rent equipment weeks before you collect the first draw, and the general contractor may hold back part of each payment until the job is done. The right term loan lets you take on bigger jobs without draining your account. Here we compare the options and how to fit them to your payment cycle.
Key takeaways
- In construction, money goes out before it comes in, so pick a term that covers your collection cycle.
- OnDeck lends $5,000 to $400,000 with 1 year in business and a 625 credit score, according to its site.
- Accion Opportunity Fund offers terms up to 36 months to construction companies with 2+ years.
- The SBA 7(a) goes up to $5 million, but since 2026 it requires 100% of owners to be U.S. citizens or nationals.
- For machinery, equipment financing is usually easier and cheaper.
- Submit your contracts and receivables along with your bank statements.
Why construction needs a different kind of analysis
- Progress billing. You invoice in stages and get paid in 30, 60 days or more. Your deposits swing a lot from month to month.
- Retainage. Many contracts withhold part of every payment until the job is finished. It's your money, but you can't use it yet.
- Seasons. In many areas, winter or the rainy season slows work down.
- Bonds and insurance. Public and commercial jobs often require surety bonds, and the surety reviews your finances.
- Expensive equipment. Machinery, vehicles and tools take up a big share of the budget.
That's why a funder that understands the construction payment cycle can correctly read a low month as nothing more than a job between draws. The product guide is at term loans for construction.
How we chose these options
We don't use numeric ratings. We compare every option on the same criteria, explained in how we rank business funding options: speed, minimum time in business, minimum credit, ITIN acceptance or SSN only, documents, amounts and collateral. For construction we added the term, because a job can take months to pay back what it cost to start. Competitor details were verified on their official sites in October 2026; if something wasn't published, we say so.
The best term loans for construction companies
Merchant Fund Express (recommended funder). Best for: contractors with steady deposits who need fast capital for materials, payroll or mobilizing a job. It reviews mainly your sales and deposits, not just your credit, which helps in construction, where payments come in stages and sometimes late. It funds $5,000 to $5,000,000, works with FICO from 500, decisions often come in 2 to 4 hours and collateral isn't required in most cases. Applying is free and doesn't affect your credit. It offers Spanish-speaking support and accepts ITIN applicants, no SSN needed.
OnDeck (term loan). Best for: contractors with one year, $100,000 in annual sales and a 625 credit score. According to its site, checked October 2026, it lends $5,000 to $400,000 on terms up to 24 months, with daily or weekly payments. It asks for 1 year in business, $100,000 in annual sales, a business checking account and a 625 personal FICO.
Accion Opportunity Fund. Best for: construction companies with 2+ years and $300,000 in sales that want a longer term. It's a nonprofit CDFI. According to its site, it lends up to $250,000 on terms up to 36 months, with no prepayment penalty and coaching in English and Spanish. It asks for 2 years in business, $300,000 or more in annual sales, 20% ownership by the applicant and owners who are U.S. citizens or permanent residents. If you qualify, it usually costs less than sales-based financing.
SBA 7(a) loan. Best for: established companies with citizen owners that need large amounts and long terms. It goes up to $5 million according to sba.gov and covers working capital, machinery and equipment, refinancing debt or real estate. If you qualify, it's usually among the cheapest, but it's slow. Since March 1, 2026, 100% of owners must be U.S. citizens or nationals.
Bluevine (term loan). Best for: getting another high-amount online offer to compare. On its site, checked October 2026, it offers term loans up to $500,000 issued by partner lenders, with terms up to 24 months. The page we reviewed doesn't detail that product's requirements, so confirm them before you apply.
Equipment financing. Best for: buying machinery, a used backhoe or a tool trailer. If the loan is for a machine, financing it with the machine as collateral is usually easier and cheaper. National Funding, for example, says on its site that it finances new or used equipment up to $150,000, up to 100% of the cost with no down payment required.
Quick comparison
| Option | Amounts | Published term | Minimum time | Minimum credit |
|---|---|---|---|---|
| MFE (recommended) | $5,000 to $5,000,000 | Per the offer | Reviews sales and deposits | FICO 500+ |
| OnDeck | $5,000 to $400,000 | Up to 24 months | 1 year | 625 |
| Accion Opportunity Fund | Up to $250,000 | Up to 36 months | 2 years | No fixed minimum published |
| SBA 7(a) | Up to $5 million | Long terms | Depends on the lender | Depends on the lender |
| Bluevine (term) | Up to $500,000 | Up to 24 months | Not detailed on that page | Not detailed on that page |
| Equipment (National Funding) | Up to $150,000 | Depends on the equipment | Not published on that page | Not published on that page |
The quick read: if the job pays in 60 to 90 days and you need to mobilize now, speed matters more. If you're growing a fleet or buying a yard, look for a long term and low cost, even if it takes longer.
What you'll be asked for
- Bank statements for 3 to 6 months (more for banks or SBA).
- Signed contracts or work orders for the jobs you're financing.
- An accounts receivable list, with expected payment dates and pending retainage.
- Contractor's license, liability insurance and, if applicable, bonding.
- Tax returns and financial statements for larger amounts.
- A list of equipment you own and finance, plus current debts.
One tip that helps a lot: submit your contracts along with your bank statements. A low month with a big job signed for next month reads very differently from a low month with nothing on the schedule.
Before you apply, sketch a simple job calendar: when you buy materials, when you pay your crew and subs, when you bill each draw and when you expect to get paid, not forgetting retainage. The gap between what goes out and what comes in during the first weeks is, roughly, the capital you need. Borrowing much more costs you extra; borrowing less leaves you short mid-job. For example, a remodeling contractor starting a commercial build-out may need capital only for the first six weeks, until the first payment lands. There, a short term fits better than a multi-year loan.
How to choose based on your job
| Your situation | Where to start |
|---|---|
| You won a job and need materials and payroll before the first draw | Fast sales-based capital or a short online loan |
| You want to buy a machine | Equipment financing |
| You're buying a yard or a building | SBA 7(a) or a bank, if you qualify |
| You have 2+ years and want lower payments | Accion Opportunity Fund or a bank |
| Your credit is rebuilding | Options that review deposits and contracts |
Common mistakes: using a short-term loan for equipment you'll be paying off for years, bidding a job without calculating the capital you need to reach the first payment, leaving retainage out of your cash flow plan and mixing money from several jobs without tracking it. To compare every option in the industry, see the best construction business loans, and if you're interested in SBA, SBA loans for construction.
If you have a signed job and need capital to mobilize, you can apply with Merchant Fund Express; it's free and doesn't affect your credit. Prefer Spanish? Leer en español.
Frequently asked questions
What kind of loan is best for starting a big construction job?
If you need materials and payroll before the first payment, look for speed and a term that covers the job's cycle. A short-term online loan or sales-based financing can arrive in days. If the job is very large and you have time, compare it with a bank or the SBA.
Can I get a loan for my construction company with less than a year in business?
It's harder. OnDeck asks for 1 year and Accion Opportunity Fund for 2 years, according to their sites. With less time, the most realistic options are equipment financing, where the machine is the collateral, and sales-based financing if you already have steady deposits.
Do funders take retainage into account?
It depends on the funder. Some only look at your deposits, so it pays to explain retainage and show your contracts and receivables. A clear list of what you're owed and when you'll collect it helps them understand your low months.
Do I need collateral for a construction business loan?
Banks and the SBA usually ask for collateral when it's available, plus a personal guarantee. With equipment financing, the machine is the collateral. Sales-based financing doesn't require collateral in most cases, though it usually asks for a personal guarantee.
Is a term loan or a line of credit better for construction?
A term loan fits a specific need: mobilizing a job or buying a machine. A line of credit fits gaps that repeat between payments. Many construction companies use both: the loan to grow and the line for day-to-day cash flow.