Construction Business Financing

General contractor financing tackles the cash flow issues GCs often encounter when juggling multiple projects with staggered payment timelines. Spending may outpace collecting due to progress billing, retainage holdbacks, and material procurement schedules, creating financial strain even for successful contracting businesses.

For general contractors, financing needs typically include working capital to handle payroll and materials in the interim between progress payments, equipment financing for their heavy machinery and tools, and bonding support for larger commercial and government projects.

REIL Capital structures financing around the unique cycles of construction payments. Whether you’re seeking bridge capital to bridge the gap from mobilization to your first progress payment or equipment financing to expand capacity for a new project, our approval process is streamlined for contractors in need of quick funding.

Contractor loans are a lifeline for construction professionals, offering working capital, equipment funding, and the kind of project-based financing that fits their unique needs. Traditional bank loans? They can take weeks. But with REIL Capital, the loan process is attuned to the fast pace construction projects often demand.

What do people use contractor loans for? Let's break it down: buying materials upfront before that initial draw comes in, managing payroll during those inevitable seasonal slowdowns, funding the purchase of equipment to tackle bigger projects, and covering those stretches when payments from general contractors or property owners can take 60 to 90 days.

REIL Capital takes a different approach by approving loans based on business revenue and project pipeline rather than insisting on immaculate credit scores. If you've been in business for at least 6 months, bring in $20K in monthly revenue, and have a credit score above 500, you're likely in a good spot to receive funding ranging from $20K to $5M.

Construction equipment financing is a lifeline for contractors who need to get their hands on essential machinery like excavators, loaders, dozers, cranes, concrete equipment, and more without forking out large sums upfront. Just consider this: an excavator might set you back anywhere from $100,000 to $500,000, while cranes can soar past the $1 million mark. Financing ensures these crucial tools are within reach, keeping your cash reserves intact.

Heavy machinery, when well cared for, can serve you for 10 to 20 years. This longevity often makes financing more economical than leasing. Plus, when you finance, you can take advantage of Section 179 tax deductions and depreciation, which means the real cost of acquiring that equipment drops.

What Construction Equipment Can Be Financed

• Earthmoving — excavators, bulldozers, skid steers, backhoes, graders
• Lifting — cranes, forklifts, boom lifts, scissor lifts
• Concrete — mixers, pumps, batch plants, finishing equipment
• Paving — asphalt pavers, rollers, compactors, milling machines
• Support vehicles — dump trucks, flatbeds, water trucks, service trucks

At REIL Capital, we’re ready to finance construction equipment ranging from $10,000 all the way up to $5 million per transaction. Since the equipment itself is the collateral, our credit requirements are more lenient compared to unsecured loans. Here’s a bonus: most applications for construction equipment financing get approved within just 24 hours.

Subcontractors often find themselves in a tricky cash flow situation. First, they've got to buy materials and pay their crew upfront, long before any work begins. Then, they spend weeks or even months on the job, only to submit invoices once certain milestones are achieved. The kicker? They might have to wait another 30 to 90 days before seeing any payment from the general contractor. This means a subcontractor could have capital tied up for 60 to 120 days on every project.

And retainage? It complicates things further. In many commercial construction contracts, 5-10% of each payment is held back until the project's wrapped up. For a subcontract worth $500,000, that's $25,000 to $50,000 that's out of reach until the end.

Financing Solutions for Subcontractors

• Invoice factoring — subcontractors can sell their approved invoices for quick cash, usually getting 80-90% of their value within a day or two
• Working capital loans — these loans help cover upfront costs for materials and labor, with repayment happening as payments roll in
• Equipment financing — get the essential tools and machinery to take on bigger or more specialized projects

REIL Capital offers support to subcontractors across various trades, including electrical, plumbing, HVAC, concrete, framing, roofing, and specialty contracting. They focus on your business revenue and contract history for approval, rather than just personal credit.

A construction business line of credit is perfect for contractors looking for flexible capital. It allows funds to be drawn, repaid, and drawn again as projects move from mobilization to execution, and finally to payment collection. This arrangement stands in contrast to a term loan, which provides a one-time lump sum for a single purpose. A credit line, however, adjusts to the unpredictable cash flow patterns typical in construction.

Contractors juggling several projects at once meet overlapping capital needs. Imagine needing to order supplies for Project B while you're still 45 days away from getting paid for Project A. At the same time, a new bid might call for a performance bond deposit, yet retainage from three finished jobs remains unreleased. A revolving credit line bridges these timing gaps, sparing the contractor the hassle of applying for new financing each time a shortfall arises.

How Contractors Use a Business Line of Credit

• Material procurement — buy lumber, concrete, steel, and other supplies at the outset of a project, even before the first payment comes through
• Payroll bridging — ensure weekly crew wages are covered when progress payments are on a 30-60 day cycle
• Bid deposits and bonds — pay for performance bond premiums and bid deposits on new contracts without drawing cash from active projects
• Equipment rentals — finance the rental of cranes, excavators, and specialized equipment needed for specific stages of a project
• Seasonal operations — keep overhead costs in check during slow times caused by winter or rainy seasons

REIL Capital provides construction business lines of credit ranging from $20,000 to $2 million. Your credit limit depends on factors like your revenue, project pipeline, and payment history, not just your personal credit score.

Construction factoring turns unpaid progress billings into same-week working capital. Explore these resources to learn more:

• Invoice Factoring Guide — in-depth guides and strategies
• SBA Loan Resources — additional insights for your business
• All Financing Products — compare every option available through REIL Capital

Construction businesses often wait 30–90 days on progress billings. Invoice factoring bridges that gap:

• Construction Invoice Factoring — same-week working capital from unpaid invoices
• What Is Invoice Factoring? — a plain-English guide to how factoring works

We provide specialized financing for a range of industries we serve, including construction. Curious about how contractors, healthcare providers, trucking companies, and other businesses benefit from our funding programs?