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How AL Elite works for construction line of credit
- Tell us about it. Your trade, where you operate, roughly how many jobs a month you quote, and whether you need capital, a customer-financing program or both. No credit pull.
- We match you. Your request goes to lenders in our network who work with contractors in your trade and state. For customer financing, we set up a program; for capital, we match you with business lenders.
- You choose and apply with the lender. Rates, terms and the decision come from the lender. For customer-financing programs, there's no cost to join and no obligation to use it on every job.
When a line beats a loan
If your cash need is one-off (a single big job, a single machine), a loan is cleaner. If it recurs (every spring you buy materials and hire, every fall you're flush), a line of credit means you borrow only for the weeks you need to and stop paying interest the day you repay. Many contractors keep a line open permanently as a buffer for slow-paying customers and surprise costs.
Secured vs unsecured lines
Unsecured lines are faster and simpler but smaller and more credit-sensitive. Secured lines (against equipment, receivables or real estate) are larger and cheaper but take longer. Banks and credit unions tend to offer the best-priced lines to established contractors; online lenders are faster and more flexible for newer businesses. Our network includes both.
What lenders want to see
Beyond the basics (time in business, revenue, credit), line-of-credit lenders look for consistent deposits, a manageable debt load and a reason the line will be repaid: backlog, signed contracts, a clear seasonal pattern. A line is a relationship product; expect an annual review.
What lenders look for
Every lender sets its own criteria. The things that come up most often:
- Time in business. Many business lenders want at least one to two years of operating history; some products accept less.
- Revenue. Annual revenue thresholds vary by lender and product. Bank statements are the usual proof.
- Business and personal credit. Smaller contractors are often underwritten partly on the owner's personal credit.
- Licensing and insurance. A current contractor's license (where required) and general liability insurance.
- State. Lender availability and product rules vary by state. We match you with lenders who serve your location.
- Consistent deposits and a seasonal pattern. Lenders want to see the line will be repaid each cycle.
Frequently asked questions
What is a construction line of credit?
A revolving credit limit a contractor draws against as needed and repays as jobs pay, with interest only on the outstanding balance. It suits recurring seasonal gaps.
How much can a contractor get on a line of credit?
Limits depend on revenue, credit and whether the line is secured. Secured lines against equipment or receivables are typically larger. We'll match you with lenders whose limits fit your business.
Is a line of credit better than a working capital loan?
For recurring needs, usually yes; for a one-off gap, a loan is simpler. Many contractors use both: a line as a buffer and a loan for a specific large need.
Is AL Elite a lender for construction line of credit?
No. AL Elite is a matching service. We route your request to business lenders in our network who fund construction line of credit, and they set the terms and make the decision. Lenders pay us for introductions; you don't.
Does requesting options affect my business or personal credit?
Submitting a request to AL Elite does not pull credit. Business lenders typically run a soft inquiry to pre-qualify and a hard inquiry at formal application. We tell you each lender's approach before you proceed.