Contractor Business Loans

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Contractor Business Loans

Loans for Contractors

Many tradespeople choose to become a contractor for the improved work-life balance and income potential. Whether you need new equipment or are ready to grow your business, there will likely come a time when you need to think about finding a contractor business loan to achieve your goals.

Applying for a contractor business loan is fast and easy:

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Receive funds from $5K - $1,000,000+ towards your business needs

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What is a contractor business loan?

A contractor business loan is any business loan suitable for contractors. In most cases, this is a lump sum you borrow from a lender and pay back over a short, medium or long term and use to finance your business’s growth or to ease the strain of investing in new equipment.

Where to find contractor business loans

The best contractor business loans are:


OnDeck has become a favorite of contractors thanks to their fast funding options and short repayment terms. They offer loans for 3-36 months with interest rates from 9%. They typically fund your account within a day of being accepted, which makes it possible for you to act quickly.

OnDeck Business Loan Review


Funding: Borrow $5,000 - $250,000
Minimum Credit Score: 600
Loan term: up to 36 months
Funding turnaround: as soon as same business day

OnDeck offers fast business loan options such as term loans, business lines of credit, and SBA PPP loans and funding as fast as 24 hours. Minimum requirements include: at least 1 year in business, 600 credit score, $100,000 in gross annual revenue and a business checking account.

  • Minimum credit score: 600
  • Minimum time in business: 1 year
  • Minimum annual revenue: $100,000
  • At least 2 years must have passed since a bankruptcy
  • Requires personal guarantee and business lien

Triton Capital

If you need to purchase new equipment you can source an equipment loan through Triton Capital. Their interest rates start at just 5%, so it can be an affordable way to borrow if you have good or excellent credit. They also offer flexible repayment options and fund accounts in 2 days.

Triton Capital

Triton Capital

Funding: Borrow up to $250,000
Minimum Credit Score: 600
Best For: Equipment Financing in various industries
Funding turnaround: 1-2 business days

Borrowers seeking equipment financing can obtain a loan up to $250K with Triton Capital and obtain fast funding without prepayment penalties. Personal guarantee is required along with a $250,000 annual income to qualify. Repayment options are flexible and the minimum time in business must be 2 years.

  • Minimum credit score: 600
  • Minimum time in business: 2 years (however startups can get funding in some situations)
  • Minimum annual revenue: $250,000
  • Requires personal guarantee and business lien

Funding Circle

If you’re an established business and want longer-term financing, a loan from Funding Circle may be the right fit for you. Their interest rates start at just 12% and go no higher than 36%. While not the fastest on this list, they still fund counts within 3 days.

Funding Circle

Funding Circle

Funding: Borrow $25,000 to $200,000
Minimum Credit Score: 700
Loan term: 6-12 months
Funding turnaround: 24-48 hours

Funding Circle offers affordable business loans with interest rates lower than alternative lenders with monthly repayment schedules for borrowers with good to excellent credit scores.

  • Minimum credit score: 660
  • Minimum time in business: 2 years
  • Minimum annual revenue: none
  • Must not have a history of bankruptcy within the last 7 years
  • Requires business lien and personal guarantee
  • Not available in Nevada

How does a contractor business loan work?

Most contractor business loans are unsecured, meaning you borrow money based on your promise to repay. These loans generally come with shorter terms and higher interest rates, but the biggest deciding factor is your personal credit score.

You can also get secured contractor business loans, which are tied to the equipment you own or even real estate you purchase. These types of loans come with lower interest rates and longer terms, but you will be at risk of losing your asset if you can’t keep up your repayments.

Can an independent contractor get a business loan?

Yes, independent contractors can get business loans, though what kind of loan you can apply for may differ depending on how your business entity is registered. That said, in most cases, it won’t make a difference if you’re a sole proprietor, LLC, or corporation, since most business loans require a personal guarantee.

What can a contractor business loan be used for?

You can use most contractor business loans for any business expense. For example:

  • Purchase raw materials
  • Hire permanent or temporary employees
  • Invest in a new vehicle
  • Buy new equipment
  • Refinance current debt

Need help finding the right loan?

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What are the best types of contractor business loans?

Term Loans

Term loans provided by alternative lenders are generally the most popular form of funding for contractors, because they offer fast funding (usually within 3 days of approval) and lower qualification requirements than other types of financing. Interest rates and terms vary significantly depending on the length of the term and your creditworthiness, but generally range anywhere from 5% to 99%. Terms can be as short as 3 months or as long as 10 years.

SBA Loans

SBA loans are a popular choice for contractors because they offer such low interest rates (2.89% - 13%). The Small Business Administration guarantees these loans with local and independent lenders over terms of 12 months to 10 years or even longer for real estate purchases.

While these loans are definitely some of the best available to contractors, they are generally more difficult to qualify for and funding times can make them impractical (it can take up to 12 weeks to receive funds).

The SBA offer three different types of loan:

  • 7(a) loan program: this is their most popular loan and it offers funding for any business need
  • 504 loan program: can only be used for large assets and real estate
  • Microloan program: provides funding up to $50,000 for female-led and minority business owners

Equipment Loans

If you’re looking to purchase equipment, an equipment loan may be the best choice for you. This type of loan uses the equipment you purchase as collateral for the loan, which helps keep interest rates low. In all other ways it is like a term loan, and you repay with a monthly (or sometimes weekly) payment. The lender will want to approve the equipment you want to purchase or may purchase it on your behalf.

Business Line of Credit

A business line of credit works like a credit card and provides flexible borrowing up to a specified credit limit, the main difference being you can use the funds for almost any purpose and the credit limit is usually higher. As with credit cards, you only pay interest on the money you borrow and you can reuse credit once you’ve repaid it.

Business Credit Card

If you only want to borrow a relatively small amount, a business credit card may be the best option for you. These work just like a personal credit card (often with similar interest rates, benefits, and fees) but are tied to your business finances.

Invoice Financing

Invoice financing is where you borrow the amount of money you’re waiting to be paid on an invoice from a third-party company and pay it back when your client pays you. Alternatively, invoice factoring is also an option; this is where you sell an unpaid invoice to another company. The latter can be costly if your client doesn’t pay in a timely manner and you also lose control of the customer experience. Be aware that with both you need to be B2B, not B2C.

What are the pros and cons of contractor business loans?


  • Grow your business sooner rather than later
  • Take advantage of time-limited opportunities
  • Ease cash flow issues
  • Low interest rates possible for those with good or excellent credit


  • You usually have to provide a personal guarantee and business lien
  • The best loans require high credit scores
  • If you don’t manage your cash flow properly, you may find yourself struggling to pay between projects

How to Qualify for a Contractor Business Loan

To qualify for the best contractor business loans, you’ll need:

  • A credit score of 600 or higher
  • A minimum annual revenue of $50,000 - $100,000
  • At least 1 year in business
  • Be willing to put up a personal guarantee and business lien

If your business is seasonal, make sure you prepare appropriate documents that show a potential lender how you plan to pay for the loan during this period and that your business reliably does more business after this period.

How to Apply for a Contractor Business Loan

Applying for a contractor business loan is fast and straightforward with the majority of lenders. You’ll need to have your personal, business, and financial information ready, so be prepared to share tax returns, bank statements, and other financial documents if asked. Most applications allow you to save your progress, so don’t panic if you need to pause to gather more information.

Compare and Apply Now

The most important thing you need to consider when looking for a contractor business loan is the interest rate. The interest rate will dictate how much your loan costs you overall and how affordable you find the monthly repayments. Make sure you try to get the lowest interest rate you can and use our calculator to find out what a potential interest rate may cost you. Once you find the right loan for you, all you need to do is apply. You could have the funding you need in as little as 3 days from today, so get started now.

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