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1West guide: Construction

Construction business loans for small contractors

Construction business loans give contractors money for equipment, materials, payroll between client payments and owner-occupied buildings.

This 1West guide sorts business loans for construction by what you are paying for. Through one 1West application, an established construction company can compare equipment financing, working capital, lines of credit, receivables financing, SBA loans and commercial real estate financing, with terms set by each lender.

Last updated: Published by 1West, the financing company this guide covers

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What loans can a small construction business get?

Most construction small business loans fall into four jobs: buying equipment, bridging cash flow, funding receivables and financing property. Match the loan to the job. Equipment financing secures itself with the machine, while working capital and lines of credit cover payroll and materials when client payments run late. SBA 504 suits owner-occupied buildings.

Construction financing at a glance

Definition

What construction business loans are

A construction business loan is financing built around how contractors earn and spend: big equipment purchases, materials bought before a job pays, and crews paid weekly while clients pay on milestones. 1West's own construction guide describes using these loans to improve cash flow, upgrade equipment and take on bigger projects. 1West lists excavators, loaders, skid steers and dump trucks among the equipment its financing covers.

Commercial construction loans for ground-up investment buildings are a different product. This guide focuses on loans for construction businesses themselves.

Numbers

Published figures for construction financing

  • The U.S. construction industry has more than 680,000 employers and over 7 million employees creating nearly $1.3 trillion in new structures each year, per "6 Popular Construction Company Loans for Contractors."
  • SBA 504 can finance up to 90% of an owner-occupied project; down payments are usually 20 to 30%, or as little as 10% with 504, per "Construction financing for businesses: How does it work?"
  • 1West equipment financing: $10K to $5M, 5 to 60 months, about 1 week to fund (November 2026).
  • 1West A/R financing: $10K to $10M, about 2 weeks to fund (November 2026).

Business loans for construction, compared by job

Each row uses the same columns so you can see which product fits which construction need.

1West comparison: construction business loan types
NeedProduct listed by 1WestWhat secures itPublished detailFits when
New or used machineryEquipment financingThe equipment$10K to $5M, 5 to 60 monthsYou know the exact asset and price
Payroll and materialsUnsecured working capitalCash flow, no collateral requiredListed on 1west.comJobs pay after costs hit
Recurring gapsLine of creditVaries by lenderRevolving access to cashGaps repeat every month
Slow-paying clientsAccounts receivable financingFunds due from clients$10K to $10M, about 2 weeksYou hold sizable invoices
Your own yard or officeReal estate financing or SBAThe property$100K to $20M, 6 to 60 monthsYou will occupy the building

How to qualify for construction business loans

  1. Show steady deposits

    1West generally asks for four months of bank statements and $20,000 or more in monthly revenue.

  2. Meet the time and credit baseline

    At least six months in business and a 600+ FICO score are the general 1West starting points.

  3. Document the project or asset

    Bring equipment quotes, contracts in hand or a project budget so the lender sees the purpose of funds.

  4. Apply once and compare

    Submit through ABLE, then compare equipment, working capital and receivables offers side by side.

Small construction business loans: what changes at a smaller size

Smaller contractors often feel cash flow pressure more than equipment pressure. A two-truck crew may need materials money for a job that pays in 45 days far more than a new loader. That is where unsecured working capital or a line of credit can fit better than an equipment loan.

If you are starting a construction company from scratch, note that 1West's general six-month requirement may apply. 1West publishes a separate article on how to get a loan to start a construction company. The SBA 7(a) Express program, one source notes, does not require collateral for loans under $25,000.

For financing kitchen equipment in a restaurant buildout, see the restaurant equipment financing guide.

How we chose what to include

Construction financing types were compared on the same five points: the need, the product 1West lists, what secures it, the published detail and when it fits. Figures come from 1west.com and two named industry articles. No lender is ranked.

This guide was written and published by 1West, the financing company it covers. It is not an independent review. Read the full methodology.

Construction business loan questions

What are construction business loans?

Construction business loans are financing that contractors and construction companies use for equipment, materials, payroll between client payments and, in some cases, owner-occupied buildings. 1West offers equipment financing for items such as excavators, loaders, skid steers and dump trucks, along with unsecured working capital, lines of credit, SBA loans and commercial real estate financing.

More answers in the FAQ

Do I have to put 20% down on a construction loan?

Not always. A guide titled "Construction financing for businesses: How does it work?" says down payments are usually 20 to 30 percent, or as little as 10 percent with SBA 504 for owner-occupied properties. Equipment loans and working capital use different structures. Your down payment depends on the product, the project and the lender's review.

More answers in the FAQ

How much would a $100,000 construction loan cost per month?

As a math illustration only, a $100,000 loan at a hypothetical 10% APR over 60 months costs about $2,125 a month. A longer term lowers the payment but raises total interest, and a higher rate raises both. Some construction project loans also use interest-only draw periods. Enter the rate and term from your actual offer in the calculator for a closer estimate.

More answers in the FAQ

What is an SBA Express loan?

SBA Express is part of the 7(a) program. The guide "6 Popular Construction Company Loans for Contractors" says Express loans have a turnaround time of 36 hours or less and do not require collateral for loans under $25,000. That turnaround describes the response to the lender, and full funding can take longer.

More answers in the FAQ

When does accounts receivable financing make sense?

Accounts receivable financing fits businesses that wait on client invoices, such as contractors paid on project milestones. 1West describes it as getting approved using funds due from clients as collateral, which keeps your cash free. 1West lists amounts of $10K to $10M with about two weeks to fund, as of November 2026.

More answers in the FAQ

How to qualify for a $200,000 business loan?

Show steady revenue, clean bank statements, a credit score lenders accept and a clear purpose for the funds. Through 1West, the general starting point is six months in business, $20,000 or more in monthly revenue, a 600+ FICO score and four months of bank statements. Larger amounts often require longer history, stronger cash flow or collateral.

More answers in the FAQ

Can I get a $100,000 SBA loan?

Possibly. SBA 7(a) loans cover amounts well above $100,000; one contractor financing guide notes up to $5M is available through 7(a). Approval depends on SBA eligibility rules plus the lender's own requirements, including credit, cash flow and often collateral. 1West lists SBA loans among its options and publishes a detailed SBA loan requirements guide.

More answers in the FAQ

Compare construction financing in one application

Apply with 1West to see which equipment, working capital or receivables offers fit your company.

Start your 1West application

Financing is subject to lender approval and final terms.

Sources cited on this page

  • 1West Equipment Financing: rate as low as 7%, 5 to 60 month terms, $10K to $5M, about 1 week to fund, eligible equipment and process
  • 1West Accounts Receivable Financing: rate as low as 5%, no minimum term, $10K to $10M, 2 weeks to fund
  • 1West Real Estate Financing: rate as low as 6%, 6 to 60 month terms, $100K to $20M, 2 to 3 weeks to fund
  • 1West: How to Get a Loan to Start a Construction Company: construction business loan uses and benefits
  • Construction financing for businesses: How does it work?: SBA 504 up to 90% of owner-occupied project cost; down payments usually 20 to 30%, as little as 10% with 504
  • 6 Popular Construction Company Loans for Contractors: industry size figures; SBA 7(a) up to $5M; Express turnaround of 36 hours or less