Which product fits which problem
| The problem | The usual fix | Why |
|---|---|---|
| Payroll is Friday, the draw is in three weeks | Working capital loan or line of credit | Short-term, fast, sized to the gap |
| A GC pays net-60 and you can't wait | Invoice factoring | Advances against the invoice itself; the GC's credit matters more than yours |
| You need a $90,000 excavator | Equipment financing | The equipment is the collateral; longer terms match its life |
| The dump truck died mid-season | Truck financing | Vehicle lending with new and used options |
| Every spring you need cash and every fall you don't | Line of credit | Draw and repay as the season turns |
| Customers can't afford the job | Customer financing program | That's the customer's loan, not yours; you get paid at completion |
What business lenders look at for contractors
- Time in business and revenue, usually from bank statements and tax returns.
- Owner's personal credit, for smaller businesses especially.
- Licensing and insurance.
- Backlog and receivables, because they show the loan will be repaid from real work.
- Equipment or invoices as collateral, where the product uses them.
The use case we hear most
"I've got $80,000 of work signed and I need $30,000 to cover crews and materials until the first draw." That's a working capital or line-of-credit request, and it's the single most common thing contractors ask us for. The working capital page walks through it, including how lenders size the amount.
Frequently asked questions
What is a construction business loan?
Any financing for a contractor's own business: working capital, equipment and truck loans, invoice factoring, lines of credit or SBA-backed loans. It's distinct from customer financing, which is the homeowner's loan for the project.
How much can a contractor borrow?
That depends on revenue, time in business, credit and the product. Equipment loans are sized to the equipment; factoring to the invoices; working capital to cash flow. Tell us what you need it for and we'll match you with lenders whose limits fit.
Can a new contractor get a business loan?
It's harder with under a year in business, but not impossible: equipment financing (where the asset is collateral) and factoring (where the customer's credit matters) are the most accessible. Working capital loans usually want more history.
Does AL Elite charge contractors?
No. Lenders pay us for introductions. Comparing options is free and does not pull your credit.