Business loans for construction businesses
If you’re a builder, contractor, or subcontractor and cash flow is tight, we help you find funding that fits the way construction actually gets paid.
Built for construction cash flow, progress claims, and retention gaps
Options may include 6 to 60 month terms, depending on the lender and your situation
Eligibility check first, then we match the structure to your cash flow
Important: This is not a property construction loan with progress payments to build a house or commercial property. If that’s what you mean, you will need a different type of finance.
100% free · No credit score impact · No obligation
Lenders’ Choice Broker of the Year finalist
Optimise Awards 2025
Last updated: February 2026
Written by CASEY, Australian business finance specialists
Quick answers (for busy builders and contractors)
Can construction businesses get business loans?
Often, yes. It depends on bank statement behaviour, time trading, current commitments, and whether the facility matches your cash flow cycle.
What terms are possible?
We often see construction businesses pushed into short short-term loans when they may qualify for longer terms, sometimes 6 to 60 months, where suitable and subject to lender assessment.
Can repayments be weekly, fortnightly, or monthly?
Sometimes. Depending on the lender and product type, repayment options may be weekly, fortnightly, or monthly.
Can I repay early?
Some facilities allow early payout, and some may have no break fee, depending on the lender and product. This should always be confirmed before you accept an offer.
How much can I borrow?
Where suitable and subject to assessment:
Unsecured options may be available up to $250,000
Secured options may be available up to and above $1,000,000
The best outcome usually comes from matching the right structure to the way your cash flow actually works.
A quick example of why structure matters in construction
In December 2025, a construction business owner came to us after speaking with a large brokerage who funded them a loan before the Christmas shutdown period.
They had been offered $40,000 on a short-term structure. The repayments were $2,187.60 per week over 6 months, which meant a total payback of $56,887. In lender terms the client was offered a 1.42 factor rate over 6 months, which works out to an extremely high annualised cost — roughly 84% interest per annum.
At first it felt manageable, because they just needed quick cash flow relief. But within a few weeks, the repayments started eating into wages, supplier payments, and day-to-day operating cash. One month in, they said it kept them awake, because it felt like the loan payment was due before their next claim would clear.
They reached out and told us it had already become stressful. They were still working, still invoicing, but the facility was draining cash so fast that it felt like they were falling behind again.
We started the way we always do. First, we ran a fast eligibility check (no credit score impact). Then we reviewed bank statements and mapped the cash flow problem properly, including how and when they actually got paid.
After workshopping the scenario and exploring options, we helped them move away from a short-term repayment loan and into a line of credit facility with a $60,000 limit. This option gave them the ability to draw and repay as needed over a longer period, rather than being locked into heavy fixed repayments every week.
The difference for them was practical. Instead of repayments around $2,187 per week, the maximum weekly repayment on the $60,000 facility was around $600 per week, which was far more manageable for their cash flow. The annual rate they qualified for was 26.95%. They could also pay out balance with no costly break fees.
That is what we focus on at CASEY. Not “any loan”. But a structure that works for you today, that is truly tailored to your business and still works when the next progress claim is delayed — fast.
Note: Every outcome depends on your business, bank statements, and lender assessment. While this example is real, this is for general context only and does not represent a guaranteed result as every scenario is unique.
What this page covers (and what it doesn’t)
This page covers
Funding for construction businesses to help with:
working capital and cash flow gaps
supplier bills
wages and subcontractors
retention gaps
BAS and GST
tools, vehicles, and plant (where relevant)
This page does not cover
Loans designed to fund the construction of a property using progress payments.
If you searched “business loans for construction” but actually meant “finance to build a property”, this page is not the right match.
Why construction businesses get knocked back (even if the business is solid)
Construction is often treated as higher risk because lenders worry about timing, disputes, thin margins, and history of defaults industry-wide.
Common reasons lenders decline or limit approvals include:
Cash flow timing gaps
You pay wages and suppliers now, then wait to be paid.Progress claim timing
Payments can be delayed by sign-offs, inspections, or paperwork.Retentions
Some of your money is held back, sometimes for months.Variations, disputes, and delays
Even one project issue can create payment uncertainty.Lumpy income Construction does not always look steady on bank statements.
Debtor concentration
Too much reliance on one builder, head contractor, or project.Rapid growth
Growth can look like instability if cash hasn’t caught up yet.A few negative days
Temporary overdrafts, dishonours, or missed direct debits can trigger policy issues.
This is why the same construction business can get very different results depending on:
who they apply with
how the application is framed
whether the product matches their cash flow cycle
Funding options construction businesses commonly use
Below are common funding types used by builders, contractors, and subcontractors. Availability depends on the lender and your situation.
Working capital term loan
A lump sum repaid over a set term. Common uses:
wages and subcontractors
supplier bills
catching up after slow payments
smoothing BAS and GST shocks
Terms may range from 6 to 60 months where suitable and subject to assessment.
Business line of credit
A revolving facility you draw from when needed. Common uses:
recurring cash flow gaps
in between claims periods
seasonal or pipeline timing issues
Invoice finance (debtor funding)
Funding against unpaid invoices. Common uses:
progress claim timing gaps
reducing pressure while waiting for payment
Equipment finance (tools, vehicles, plant)
Funding tied to an asset purchase. Common uses:
upgrading equipment without draining working capital
preserving cash for wages and suppliers
Short-term solutions (where suitable)
Some construction businesses use short-term facilities during a rough patch. This can help in specific cases, but it must match cash flow timing, otherwise repayments can become stressful.
Key point: the best product is the one that fits your cash flow cycle, not always the one that approves first.
Which option suits which construction cash flow problem
Most competitors skip this. This is usually where the right outcome is won or lost.
Problem: I’m paying wages and subcontractors before I get paid
Often suited to:
a line of credit, or
a working capital facility with a repayment profile the business can actually carry
Problem: Progress claims are slow and it’s choking cash flow
Often suited to:
invoice funding / debtor funding, or
a structure designed around claim timing, where suitable
Problem: Retentions are tying up cash
Often suited to:
a tailored working capital option designed to support retention gaps, where suitable
Problem: Supplier bills are stacking up
Often suited to:
working capital funding, or
a revolving facility if the issue repeats regularly
Problem: BAS/GST has hit and cash is tight
Often suited to:
a short-term cash flow solution that smooths the cycle, where suitable
Problem: I need equipment but I can’t drain cash reserves
Often suited to:
equipment finance, which can preserve cash for operations
Choosing the wrong product can create a cycle of stress, refinance, and short-term rollovers.
The goal is to avoid being stuck in short terms if a longer, better-fit structure is actually available.
What lenders usually look for (construction edition)
Lenders generally want to see that the business can repay even when cash flow timing is uneven.
Common things they look at include:
time trading and trading consistency
business bank statements (income, expenses, negative days, dishonours)
existing commitments (other loans, leases, ATO plans, credit cards)
payment timing (who pays you and how long it takes)
debtor concentration (reliance on one payer)
cash buffer and management habits
director profile and overall credit history
Sometimes, depending on the facility:
invoices, contracts, pipeline snapshot, or job schedule
A construction business can be profitable and still look risky if the lender only sees the wrong slice of the picture.
What you’ll usually need to provide (keep it simple)
To assess your options properly, most lenders typically require:
at least 6 months of business bank statements
ABN and GST details
photo ID
business details (industry, time trading, revenue range)
existing debts and repayments
Sometimes, depending on the facility, they may also request:
invoices, contracts, or pipeline details
BAS statements to confirm ATO position
You don’t need to have everything perfect to start. You just need enough to assess properly and avoid the wrong application path.
If you’ve been declined already, what to do next
A decline does not always mean your business is not fundable.
In construction, declines often happen because:
the lender category has tightened construction exposure
the product does not match your cash flow cycle
the application did not explain the context properly
the bank statement story was judged without construction context
What matters is what happens next.
The goal is to:
understand the real reason for the decline
avoid repeated wrong applications
match you to a lender and structure that fits construction realities
Common mistakes that cost builders money
These are common patterns we see in construction:
Getting stuck in short-term loans
Some businesses take short-term loans repeatedly, even when a longer term could reduce repayment pressure.Taking the first approval
Speed matters, but structure matters more.Choosing a term that crushes cash flow
Repayments can become the problem.Mismatch between product and cash cycle
A good business can struggle under the wrong repayment shape.Not checking early payout terms
Some facilities allow early payout with no break fee, others do not.Applying too broadly
Multiple wrong applications can reduce options later.
Construction businesses often do not need more finance. They need the right structure, the right term, and the right repayment shape.
Repayment options and flexibility (what people often ask)
Depending on lender and product type, construction businesses may be able to access:
terms from 6 to 60 months where suitable
weekly, fortnightly, or monthly repayments depending on cash flow patterns
early payout options, sometimes with no break fee depending on the lender
unsecured funding up to $250,000 in some cases
secured funding up to and above $1,000,000 in some cases
Not every business qualifies for every option. The point is to find what you qualify for and then choose what best fits your cash flow.
Scenarios (builders, contractors, subcontractors)
Builder with a retention gap
Work is strong, but cash is held in retention. A facility that supports wages and suppliers while waiting for retention release may reduce pressure.
Subcontractor waiting on progress claims
Invoices are issued, but payment timing causes cash crunch. A structure aligned to invoices and claim timing can help smooth the gap.
Contractor scaling up with new hires
Winning more work increases wages and supplier costs before payment arrives. A longer term may reduce repayment pressure compared to short-term solutions, where suitable.
Construction business with supplier pressure
Supplier accounts are tightening and the business needs breathing room. A working capital solution may help stabilise the cycle if the numbers support it.
Trade business upgrading tools or plant
Equipment is needed to take on more work, but cash needs to stay in the business. Equipment finance can fund the asset while preserving working capital.
About CASEY and Michael
Reviewed by Michael Pajar, Director at CASEY Asset Finance.
CASEY is an Australian business finance brokerage helping business owners understand what options may be available.
We help by truly understanding what you may qualify for, then match you to a funding structure that fits construction cash flow patterns.
We are Australia-wide. We start with eligibility first, then we only proceed further when you want to.
Business name: Casey Finance Australia Pty Ltd (trading as Casey Asset Finance)
ABN: 21 675 061 113
FAQs
What’s the difference between a business loan for construction and a construction loan?
A business loan for construction is funding for a construction business (working capital, cash flow, equipment).
A construction loan usually refers to finance to build a property using progress payments. This page covers the first one.
Can subcontractors get business loans?
Often yes, depending on time trading, bank statement behaviour, and the type of facility. Some options suit subcontractors better than others when payment timing is the main issue.
Why do builders get declined for business loans?
Construction is often treated as higher risk because of retentions, claim timing, disputes, and uneven cash flow. Some lenders also tighten construction exposure during downturns.
What terms are available for construction business loans?
Terms can vary. Some businesses end up in short-term loans even when longer terms may be available, often up to 60 months where suitable and subject to assessment.
Can repayments be weekly, fortnightly, or monthly?
Sometimes. Repayment frequency depends on the lender and product type, and can sometimes be matched to cash flow patterns.
Can I repay early?
Some facilities allow early payout, and some may have no break fee, depending on the lender and product. Always confirm before accepting an offer.
How much can I borrow?
Where suitable and subject to assessment:
unsecured options may be available up to $250,000 in some cases
secured options may be available up to and above $1,000,000 in some cases
What do lenders usually need?
Usually at least 6 months of business bank statements, plus ABN/GST details, ID, and a snapshot of existing commitments. Some facilities may also require invoices or contract information.
Important note (general information only)
This page is general information and does not take into account your objectives, financial situation, or needs. Outcomes depend on lender assessment and eligibility criteria. Consent matters. We aim to avoid wasted applications and only proceed when you want to.
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