At a glance
- Best for equipment
- Equipment financing (excavators, skid steers, trucks)
- Best between draws
- Business line of credit
- Best for large jobs
- Real estate funding
- NexGen amounts
- $10,000 to $20,000,000 across programs
- Approval speed
- Typically 1 to 24 hours for many programs
- Credit
- 650+ on most programs; 500+ for revenue-based financing; 700+ for SBA loans
Construction is a business where you pay for almost everything before you get paid for anything. Materials, crews, equipment rentals, permits and insurance are due as the job moves forward, while clients pay on progress draws, often 30 to 60 days later, and hold back a percentage until the job is done. Winning a bigger contract can make the cash squeeze worse, not better.
This guide covers the best financing for general contractors, subcontractors and specialty trades such as electrical, plumbing, HVAC, roofing, concrete and excavation, plus how to qualify and the questions contractors ask us most.
At NexGen Lending, we help construction companies nationwide compare equipment financing, working capital and real estate funding with one application.
Why Construction Financing Is Different
- Costs come first, payments come later. You fund labor and materials up front and get paid on a draw schedule.
- Retainage. Many contracts hold back a percentage of each payment until the project is complete, tying up cash you’ve already earned.
- Equipment-heavy. Excavators, skid steers, trucks, lifts and trailers are expensive and essential.
- Lumpy revenue. A few large jobs can make up most of a year’s sales, so monthly deposits swing.
- Weather and seasonality. Many trades slow down in winter in colder regions.
The Best Types of Financing for Construction Companies
| Financing type | Best for |
|---|---|
| Equipment financing | Excavators, skid steers, loaders, trucks, trailers, lifts and tools |
| Business line of credit | Materials and payroll between progress payments |
| Real estate funding | Unlocking equity in a yard, shop or home you own through a HELOC or cash-out refinance |
| Term loans & unitranche debt | Hiring, a new yard or shop, expanding into a new trade or market |
| SBA loan | Buying a building, buying another contractor, refinancing debt |
Construction equipment financing
Owning your equipment instead of renting it can lower your cost per job and make you more competitive on bids. Because the machine secures the loan, equipment financing is often easier to qualify for than unsecured credit. NexGen equipment financing runs from $10,000 to $10,000,000, with up to 100% financing and no down payment for qualified borrowers, and used equipment can qualify too.
Working capital between draws
A line of credit is built for the gap between buying materials and getting paid. Draw what you need when a job starts, then repay as progress payments come in. NexGen’s line of credit goes up to $1,000,000 for businesses with 12+ months in business, $10,000+ in monthly revenue and a 650+ credit score.
Covering slow-paying clients
If you work for general contractors, developers or public agencies that pay on long terms, a business line of credit covers payroll and materials while you wait. Revenue-based financing, starting at a 500 credit score, is an option if you don’t yet qualify for a line.
How to Get the Best Construction Financing
- Keep a current work-in-progress (WIP) schedule. Lenders want to see your backlog, what’s been billed and what’s left to collect.
- Bring signed contracts. Executed contracts and a strong backlog show lenders where repayment will come from.
- Get equipment quotes before you apply. Make, model, year and price help lenders size equipment financing quickly.
- Separate job costs. Job-costing in your accounting software shows which work is profitable.
- Stay licensed, insured and bonded. Current licenses, insurance and bonding capacity build lender confidence.
- Apply before a big job starts. Lining up a line of credit while your deposits are strong is easier than scrambling mid-project.
- Compare offers. Look at total cost, payment schedule and whether payments fit your draw schedule. Here’s how we compare offers.
What Lenders Look for in a Construction Company
- Time in business, often 12 months or more
- Annual and monthly revenue, with an understanding that deposits can be uneven
- Personal credit score
- Backlog, signed contracts and a WIP schedule
- Accounts receivable aging, including retainage owed to you
- Licensing, insurance and bonding
- Equipment quotes or appraisals for equipment financing
Common Questions Contractors Ask
Can I get financing to take on a bigger job?
Yes. A line of credit can cover materials and labor until progress payments arrive. Bring the signed contract and payment schedule so lenders can see how the job repays the financing.
Should I buy or rent heavy equipment?
If you use a machine on most jobs, owning it is often cheaper over time and lets you count on availability. For equipment you need only occasionally, renting may make more sense. Compare the monthly loan payment to what you spend on rentals each year.
Can I finance used construction equipment?
Usually, yes. Lenders will ask for the make, model, year, hours and condition. Older equipment may get shorter terms.
Does retainage count as revenue for a loan?
Lenders look at it as money owed to you. Showing retainage on your receivables aging and WIP schedule helps them understand your true cash position.
Can a subcontractor get funding while waiting on a general contractor?
Often, yes. A business line of credit fits subcontractors with 12+ months in business, $10K+ monthly revenue and a 650+ credit score. Revenue-based financing starts at a 500 credit score and leans on your sales history.
How fast can a contractor get funded?
Many NexGen programs approve in 1 to 24 hours, and equipment funds can arrive quickly after approval. SBA loans and real estate funding take longer.
Get Your Construction Business Funded with NexGen
- Equipment financing from $10,000 to $10,000,000, with up to 100% financing for qualified borrowers
- Lines of credit up to $1,000,000 to bridge progress payments
- Real estate funding, term and SBA loans for growth
- Nationwide service, from our office in Hoboken, New Jersey
This article is for general informational purposes only and is not financial, legal, or tax advice. NexGen figures come from NexGen’s service pages as of October 2026. Loan terms, rates, and eligibility vary by lender and program and are subject to approval. Availability varies by state.