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Construction Financing
Short-term funding to support real estate development and construction projects.
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Loan Amount
$5,000,000
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Time to Fund
30 to 60 days
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Term Length
12 to 36 months
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What is construction financing?
Construction financing provides businesses with the capital to fund new developments or renovation projects. Typically structured as short-term loans, this financing covers land purchases, labor, and materials, ensuring projects are completed on schedule. Upon completion, borrowers often transition to long-term commercial mortgages or permanent financing solutions.
What costs are covered by a construction loan?
Construction loans cover a range of expenses, including land acquisition, material costs, labor, and permit fees. Additionally, these loans can finance architectural planning, engineering, and contingencies for unexpected costs. Small business owners looking to expand operations through new construction or renovations can benefit from flexible disbursement schedules that align with project milestones, ensuring steady cash flow throughout development.
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Minimum Requirements
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Credit Score
680
Monthly Revenue
$8K+
Time in Business
0-12 Months
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Construction loans provide funding in disbursements (draws) based on project milestones rather than a lump sum. They often have interest-only payments during the build phase, converting into permanent loans after completion.
Developers, real estate investors, and businesses expanding physical locations (e.g., retail chains, hotels, manufacturing facilities) benefit most from this financing.
Yes, some construction loans cover both land acquisition and building costs. However, lenders may require a separate land loan or higher down payment if the land is undeveloped.
Lenders require detailed project plans, construction contracts, cost estimates, builder qualifications, and a repayment strategy before approving a loan.
Delays can result in additional interest costs, extended loan terms, or required refinancing. Some lenders build contingency funds into the loan to cover unexpected costs.
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