Construction Industry Business Loans

There are a wide range of business loans available for construction business financing. Some of these include:

• Overdrafts
• Unsecured loans
• Bank lending
• Equipment finance
• Machinery Loans
• Development funding
• Tax debt loans
• Private lending
• Progress claims finance

Yes, unsecured overdrafts are available to construction businesses without property security.  Banks will provide overdrafts without property security if a business meets their lending criteria.  Unsecured overdrafts are available from unsecured lenders and there are also lines of credit facilities available for construction business.

Yes it is easy to get machinery loans for a construction industry business.  There are no-doc machinery loans for established businesses for equipment financing up to $500,000.  We can finance older machinery and there are even machinery loans for startup construction businesses.

Making the right choice from the unsecured lenders is important as many lenders do not support construction businesses.  Whilst lenders change policy and their preferences on a regular basis choosing the right lender can make a big difference to how much you can borrow and how low the interest rate will be.  Construction businesses make up a substantial amount of our client base and we can guide you to the best unsecured loans for your circumstances.

Many business owners in the construction industry are also involved in property development.  To be approved for property development finance it’s important to have completed a feasibility study on your project and ensure there is appropriate margin.  Bank and non-bank property development loans are available.  Lenders will typically seek to understand a property developer’s prior experience and their personal asset and liability position.  If these are acceptable a lender will commission a quantity surveyors report to obtain a costs estimate against the project and a commercial valuation that will provide an ‘as is’ valuation estimate on the property at the time of the valuation and a valuation based on the completion of the project to ensure there is sufficient margin on the project.

The business overdraft interest rate is not fixed and depends on many different factors.  Different banks will have different rates depending on the size and strength of your business.  Unsecured lines of credit will typically have higher rates as an unsecured overdraft compared to overdrafts that are secured by property, however lower rates and no establishment fees are available. 

Yes, small business equipment loans are available to construction industry businesses that turnover less than $1M.  Small business equipment loan financing is available to any construction business provided you can service the loan you’re applying for and meet your other business expenses and lending criteria.

Interest rates for commercial construction financing vary depending on the size of your business, time in business and your chosen lender.  Major banks have the lowest rates but may require security, at least 2 years of profitable financials and no outstanding debt to the Australian Tax Office.  Unsecured rates will typically be higher than secured loans and equipment finance will be somewhere in between as loans are normally secured by the asset that’s being financed.  Each commercial construction loan is specific to a borrower’s own unique circumstances, to discuss your situation with an expert contact us here.