Business Funding for Contractors: Equipment, Working Capital & Bridge Loans (2026)

Q: What credit score do contractors need for business funding?

Most traditional banks require 680+ credit scores. Through marketplace lenders like ROK Financial, contractors can qualify with a 500+ credit score. The key qualifying factors are 6+ months in business and $10,000+ in monthly revenue. Equipment financing is especially accessible because the equipment itself serves as collateral, which lowers the credit requirement.

Q: How fast can a contractor get business funding?

Speed depends on the funding type. Working capital and merchant cash advances can fund in 24 hours. Equipment financing and business lines of credit typically fund in 2-5 business days. SBA loans take 30-45 days but offer the lowest rates and longest terms. Bridge loans and purchase order financing can also fund within days when tied to active contracts.

Q: Can a new contractor get equipment financing?

Yes, if you have at least 6 months in business and $10,000+ per month in revenue. Equipment financing is one of the most accessible funding types for newer contractors because the equipment itself serves as collateral. This means the lender has security even if your business history is short. Startups with less than 6 months may qualify for startup-specific funding programs.

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Quick answer: Contractors qualify for 6 types of business funding through marketplace lenders: equipment financing (buy machinery without draining cash, 2–5 day funding), working capital loans (cover payroll and materials between contract payments, 1–3 day funding), bridge loans (fund project starts before client payments arrive), business lines of credit (draw what you need, pay back, draw again), SBA loans (lowest rates, 10–25 year terms), and commercial real estate loans (buy your shop or yard). Minimum requirements: 6 months in business, $10K+/month revenue, 500+ credit score. Check your rate free with no credit impact.

The Contractor Cash Flow Problem

Construction runs on a cruel timeline: you buy materials today, pay labor this week, rent equipment this month — and the client pays in 60 to 90 days. That gap between spending and getting paid kills more contracting businesses than bad work ever does.

Banks don't help. They want 680+ credit scores, 2+ years of clean financials, and 6–8 weeks to decide. By the time they approve you, the project has started without you or you've already turned it down.

Marketplace lenders work differently. They match your application against 75+ lenders in minutes, not months. A 500 credit score qualifies. $10K/month in revenue qualifies. And most products fund in 1–5 business days.

Here are the 6 funding types that actually work for contractors.

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6 Funding Types Built for Contractors

1. Equipment Financing

Amount: $10K–$5M Terms: 1–6 years Speed: 2–5 days Credit: 500+

The equipment itself serves as collateral, which means lower credit requirements and faster approvals than traditional loans. You get the excavator, skid steer, or dump truck now and pay it off over 1–6 years while it earns you money on every job.

Best for: Excavators, skid steers, dump trucks, cranes, concrete mixers, trailers, generators, fleet vehicles, and specialized tools.

Example: A general contractor needs a $180K excavator for a commercial site prep contract worth $400K. Equipment financing covers the machine in 3 days. The contract pays for the equipment and generates profit — the contractor never touches their operating cash.

2. Working Capital Loans

Amount: $10K–$5M Terms: 6 months–10 years Speed: 1–3 days Credit: 500+

This is cash for the gap. Payroll is Friday, the lumber order is due Monday, and the client's check doesn't arrive for 45 days. Working capital covers the operational costs that keep your crew on the job and materials on the site.

Best for: Payroll between draw payments, materials purchasing, insurance premiums, bonding costs, subcontractor payments, and seasonal ramp-up.

Example: A roofing contractor wins three residential jobs starting in two weeks. Materials for all three total $65K. Working capital funds in 2 days, the contractor buys at bulk pricing, and repays from job revenue over 12 months.

3. Bridge Loans

Amount: Varies Terms: Short-term Speed: Fast Credit: 500+

A bridge loan covers the gap between when you need money and when you get paid. You won the contract, the scope is approved, but mobilization costs are due before the first draw. A bridge loan gets you on-site while you wait for the money that's already coming.

Best for: Project mobilization, gap between contract signing and first payment, interim funding while waiting on retainage release, and transition between projects.

Example: An electrical contractor lands a $500K commercial build-out. Mobilization and first-phase materials cost $80K. The bridge loan covers it. When the first draw payment arrives 30 days later, the contractor repays the bridge and continues on the client's money.

4. Business Lines of Credit

Amount: $10K–$5M Terms: Revolving Speed: 1–3 days Credit: 500+

A line of credit works like a credit card with better terms. You get approved for a limit — say $200K — and draw only what you need, when you need it. You pay interest only on what you use. Pay it back, the full amount is available again. No reapplication.

Best for: Seasonal cash flow gaps, emergency repairs, supply cost spikes, payroll smoothing, and opportunity buys (discounted materials, equipment auctions).

Example: A plumbing contractor keeps a $100K line of credit open. Most months they draw $0. When a pipe supply shortage hits and their distributor offers a bulk discount for immediate payment, they draw $35K, buy at 20% off, and repay in 60 days from job revenue.

5. SBA Loans

Amount: $10K–$5M Terms: 10–25 years Speed: 30–45 days Credit: 620+

SBA loans are the gold standard for long-term, low-rate funding. The Small Business Administration partially guarantees the loan, which lets lenders offer rates and terms that no private lender can match. The tradeoff: more paperwork and a longer approval timeline. Worth it for big moves.

Best for: Buying commercial property (shop, warehouse, storage yard), major business expansion, large equipment packages, partner buyouts, and long-term growth capital.

Example: An HVAC contractor has been renting warehouse space for $4,500/month. An SBA 7(a) loan for $650K buys a 5,000 sq ft warehouse with a yard. Monthly payment: $3,200 — less than rent, and they're building equity. 25-year term, fixed rate.

6. Commercial Real Estate Loans

Amount: $250K–$10M Terms: 10–30 years Speed: 25–40 days Credit: 600+

For contractors ready to own their workspace. Buy a shop, warehouse, equipment yard, or office. Build a new facility on land you already own. Refinance an existing property for better terms. Commercial real estate loans through a marketplace lender give you access to multiple offers instead of a single bank's take-it-or-leave-it number.

Best for: Shop or warehouse purchase, equipment yard acquisition, office space, new construction, and refinancing existing commercial property.

Example: A concrete contractor owns two acres outright. A commercial construction loan for $1.2M builds a 4,000 sq ft shop with covered equipment storage. Rent savings plus property appreciation make it the best long-term financial decision in the business.

Which Funding Type Should a Contractor Choose?

Situation	Best Funding Type	Why
Buying equipment	Equipment Financing	Equipment is collateral → easier approval, lower rates
Cash flow gap between jobs	Working Capital	Fastest funding (1–3 days), flexible use
Starting a project before getting paid	Bridge Loan	Short-term, repaid when contract payment arrives
Ongoing flexible access to cash	Line of Credit	Draw and repay as needed, no reapplication
Buying property or major expansion	SBA Loan	Lowest rates, longest terms, best for big moves
Buying a shop or warehouse	Commercial RE Loan	Purpose-built for property acquisition

            Not sure which one fits? When you check your rate, the system matches you against 75+ lenders across all product types. You see every option you qualify for — not just one. There's no credit impact and no obligation.
        

Minimum Requirements

Time in business: 6+ months
Monthly revenue: $10,000+
Credit score: 500+ (620+ for SBA loans)
Industry: All construction trades — general contractors, electricians, plumbers, HVAC, roofers, concrete, excavation, painting, flooring, landscaping, and more

Checking your rate does not impact your credit score. It's a soft pull.

Why Marketplace Lenders Beat Banks for Contractors

	Traditional Bank	Marketplace Lender
Credit minimum	680+	500+
Time to funding	6–8 weeks	1–5 days
Lenders compared	1 (the bank)	75+
Products available	2–3	14
Paperwork	Extensive	Minimal (most products)
Seasonal businesses	Often rejected	Accommodated

See What You Qualify For

Equipment, working capital, lines of credit, SBA loans — check all your options in one application. No credit impact.

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FAQ

What credit score do contractors need for business funding?

Most traditional banks require 680+. Through marketplace lenders, contractors can qualify with a 500+ credit score. Equipment financing is especially accessible because the equipment itself serves as collateral. SBA loans require 620+.

How fast can a contractor get business funding?

Working capital and merchant cash advances can fund in 24 hours. Equipment financing and lines of credit fund in 2–5 days. SBA loans take 30–45 days but offer the best rates and terms.

Can a new contractor get equipment financing?

Yes, with at least 6 months in business and $10K+/month revenue. The equipment serves as collateral, which means shorter business history is less of an obstacle than it would be for an unsecured loan.

What is a bridge loan for contractors?

A bridge loan covers the gap between when you need money and when you get paid. Win a $500K contract but need $80K upfront for mobilization and materials? A bridge loan covers it. You repay when the contract payments arrive.

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