A contractor is the one who takes care of everything regarding a project. He is the one who looks for all the incomings and outgoings of the project of ordered materials, labor, workers, their schedule, and everything. Being responsible for such large activities, the contractor surely needs fund to manage the entire construction cycle, till the time money is paid by the client. This funding requirement can be best met with business loans for contractors. If you are a contractor, considering a business loan, there are a lot of factors that you have to keep in mind. As there is a wide range of loan options available in the market, it becomes difficult to choose the right one. However, knowing the various options can help you choose the best one:

Have a Look at Different Business loan Options For Contractors!!!

An Unsecured Line of Credit 

It is a type of business loan for contractors that do not require any collateral. All those business owners who are looking to leverage good credit, they can take advantage of this unsecured loan option. In case, if the credit score is more than 680 then you will be able to get a good amount of unsecured business loan of up to $250,000. Though this loan is easier to get the interest rate of this loan is higher when compared to other types of loan options. 

Eligibility Criteria of the Business 

• Minimum business time should be at least 6 months. 
• The interest rate of this loan starts at 7.5%. 
• The minimum credit score should be at least 450 to get this business loan. 

SBA Loans

The SBA (small business administration) loans provide credit to small business owners. As there are a number of business loans for contractors are available but SBA is luckily one of the best available loan options not just because of the safety it provides but also because the loan also provides flexibility to its clients. As the clients find the terms and conditions of this loan attractive and because of the advantages the loan provides, there is a huge demand for this business loan option. 

Eligibility Criteria of the Business 

• Minimum business time should be at least 3 months. 
• The interest rate of this loan lies between 5 to 8%. 
• The minimum credit score should be at least 500 to get this business loan. 
• The loan tenure can be up to 10 years according to one’s preferences. 

Business Line of Credit 

This business loan option is a good choice for every independent contractor. The biggest advantage of this loan is that the contractor does not have to pay any penalty or charge if funds are not used which generally is done in all the available other loan options.  

Eligibility criteria for this business loan 

• The minimum credit score should be at least 450 to get this business loan. 
• The minimum business time should be at least 3 months. 

Bottom Line:

If you are looking for a business loan, make sure you compare all the pros and cons of the available business loan options according to your needs and then decide which one will go to be a better option for your business. To get the best available loan deal, add keywords “construction loans near me” to Google now and then check out the list of loan options with their pros and cons to decide the best available loan deal for you.