A construction line of credit is a revolving loan that lets companies cover expenses while waiting on accounts receivable. Like a business credit card, repaid funds become available to borrow again — no need to reapply each time.
But where you get your line of credit matters. It can mean quick access to funds — or waiting weeks just to get approved.
The two main options for obtaining a line of credit are through traditional banks or revenue-based financing companies:
- Traditional bank financing usually takes between two weeks and three months to fund. Additionally, most construction companies don’t qualify because banks have strict requirements, asking for two years of tax returns, positive profit and loss statements, balance sheets, collateral, and a credit score of 700 or higher.
- Revenue-based financing can be funded in as little as one or two days because approval is based solely on your company’s revenue and, thus, only requires a few months of bank statements. It’s easier to qualify for since you only need to meet the minimum monthly revenue.
As a result, more construction companies and contractors are turning to revenue-based financing.
This guide shows you how to secure a revenue-based line of credit with Redline Capital — and why it beats the slow, paperwork-heavy process of a traditional bank. Plus, we’ll answer some frequently asked questions.
Who are we? Redline Capital is a revenue-based financing provider that helps business owners secure fast funding at favorable rates. To apply, submit a half-page application and four months of bank statements. We’ll provide multiple funding offers — with the option to close the same day or the next.
| Funding Features | Requirement |
| Line of credit amount | $30K to $750K |
| Factor rates | 1.1x to 1.4x the borrowed amount |
| Line term | 6 to 24 months |
| Repayment terms | Monthly and weekly |
| Minimum credit score | 600 |
| Minimum time in business | 12 months |
| Minimum monthly revenue | $30K |
Revenue-based Financing: Secure a Construction Line of Credit in 24 to 48 Hours
Revenue-based financing is a funding solution underwritten based on your business’s monthly revenue. Because of this, borrowers only need a few months of bank statements to qualify.
This revenue-focused underwriting gives construction companies two big advantages:
- Fast access: You can receive a line of credit on the same day or the next. Since revenue-based financing companies only require bank statements, this expedites the application and approval process. They don’t sift through years of tax returns, balance sheets, and purchase contracts, among other paperwork, like banks.
- Easier qualification: Because revenue-based financing companies prioritize revenue, it’s easier to qualify, especially for companies who meet the $30K monthly revenue minimum but may not have a multi-year track record of profitability, tax returns, and financial statements following proper accounting procedures needed for bank loans.
How to Apply for a Construction Line of Credit with Redline Capital
- Complete a half-page application and submit four months of bank statements. We’ll review your application, including revenue, deposit frequency, requested amount, and closing time frame, and leverage our industry expertise to find lenders offering the most competitive terms for your unique situation.
- Within a few hours, we’ll send offers from multiple lenders for you to compare. Each offer details the approved amount, financing term, factor rate, and payment terms.
- After selecting the offer that works for you, you’ll get access to funds through a client portal. You can withdraw up to your credit limit and pay fees only on the amount you withdraw.
- Repay funds in monthly installments or weekly debits. As you repay, those funds become available again until the term ends.
Qualification Criteria for Redline’s Business Line of Credit
To qualify for a revenue-based line of credit with Redline Capital, your business must meet four main criteria:
- Generate $30K or more in monthly revenue
- Be in business for at least 12 months
- Be based in the U.S.
- Have a credit score above 600 (unlike most banks, we run a soft credit check, so applying won’t hurt your credit score)
Why Choose Redline Capital
Redline Capital is a revenue-based financing provider with 15 years of experience helping construction companies, general contractors, and subcontractors qualify for lines of credit.
Beyond lines of credit, we offer financing solutions such as working capital, term loans, equipment financing, and SBA loans.
Two key factors differentiate us from other revenue-based solutions:
- We close significantly faster than most lenders
- We shop the market on your behalf to secure the most favorable terms
We Close Significantly Faster Than Most Lenders
Business owners typically close faster when partnering with us than when applying directly to a lender.
That’s because we’re brokers who bring significant deal volume, so lenders prioritize our applications. Some even have underwriter teams dedicated solely to our applications.
Construction businesses that apply directly often face longer wait times, as their applications are usually processed after those submitted by brokers.
We Shop the Market on Your Behalf to Secure the Most Favorable Terms
When you apply directly to lenders, your options are limited — you only receive line of credit offers from those you apply with.
With Redline, one application gives you access to a wide network of lending partners. We compare multiple line of credit offers on your behalf to ensure you’re getting the most competitive terms available.
We combine industry expertise with a strategic approach. Based on your revenue, funding amount, closing time frame, and personal credit score, we identify which lenders are most likely to provide the strongest offer — and route your application accordingly.
Thanks to our 15-year track record as a broker, we’ve built strong relationships with top construction-focused lenders like Credibly, Rapid Finance, Fora Financial, and BriteCap. You can be confident we’ll secure the most favorable line of credit offers available.
What Clients Say About Our Process
To hear from more of our customers, check out our case studies page:
How Traditional Banks’ Lines of Credit Programs Compare to Revenue-Based Financing
Applying for a business line of credit and other financing options from a large bank is a very different experience from revenue-based financing. While exact requirements vary by bank, most ask for:
- At least two years of tax returns
- Accounts receivable reports
- Copies of contracts or purchase orders for current projects
- Financial statements that adhere to formal accounting procedures (profit and loss statements, balance sheets)
- A list of owned or leased equipment
- Estimated budgets for upcoming projects
Because of all this, the application process can take weeks or even months. Many construction companies — especially smaller ones — don’t have the paperwork ready and need time to gather it before applying. Additionally, banks often take a long time to review and underwrite documentation.
Banks also consider borrowers’:
- Time in the construction industry: Construction companies that qualify for a line of credit at banks are generally in business for at least two years.
- Credit history: Banks usually run a hard credit check and look for a credit score of 700 or higher. They may also require a perfect loan repayment history for 12 months leading up to the application.
- No prior judgments or liens: Many construction businesses struggle to qualify due to previous judgments or tax liens.
- DSCR (debt-service coverage ratio): Banks often underwrite a construction company’s DSCR, which compares its income to its operational expenses over a set period of time.
- Debt-to-equity ratio: This ratio reflects how much debt the business carries relative to its assets.
- Collateral: Banks frequently require personal guarantees — such as real estate — to secure the line of credit or avoid higher interest rates.
Because most construction companies can’t meet all these criteria, they typically don’t qualify for lines of credit from traditional financial institutions.
Apply for a Revenue-Based Line of Credit with Redline Capital and Close in 24 to 48 Hours
Complete this short application and we’ll send you multiple competitive offers to choose from.
Frequently Asked Questions
What Can You Use Revenue-Based Lines of Credit For?
A business line of credit helps cover purchases or expenses while waiting on accounts receivable. This includes:
- Taking on new jobs without waiting for payment from previous ones
- Purchasing equipment needed for renovations
- Meeting payroll while waiting on client payments
- Covering upfront material or supply costs
- Bridging overhead expenses like rent, insurance, or utilities
- Hiring new staff or funding new construction projects and marketing efforts
What’s a Construction Line of Credit?
A construction line of credit is a revolving short-term loan that construction companies use to cover expenses while waiting on accounts receivable. Unlike a regular small business loan, you only pay interest and fees on the loan amount used. As you make interest-only payments, the credit becomes available again — no need to reapply each time.
What Credit Score Is Needed for a Construction Loan?
Credit score requirements for a construction loan vary by lender. At Redline Capital, construction companies can qualify with a credit score as low as 600, while banks typically require a credit score of 700 or higher.
Do You Need a 20% Down Payment for a Construction Loan?
Many banks require a 20% down payment for a traditional loan or equipment loan — but revenue-based financing, like Redline Capital’s, doesn’t. Instead, we only require $30K in monthly recurring revenue, a U.S. business address, and at least 12 months in operation.
How Do You Get Financing for Construction Companies?
The best way to get business financing at competitive rates is through a revenue-based financing company like Redline Capital. We can close the same day or the next, while banks take weeks — sometimes even months. It’s also easier to qualify; we only require four months of bank statements and a minimum monthly revenue requirement of $30K.
How Do You Meet Payroll Needs Despite Cash Flow Challenges?
One of the fastest ways to cover payroll and other business needs during a cash flow shortage is by applying for revenue-based financing. These funding solutions can close the same day or the next — so you can keep operations running without delays.