When you’re in the construction business, you need access to capital to fund new projects and grow your company. However, not all commercial lending options can meet your enterprise’s specific needs, especially if you’re a small business. Luckily, some lenders offer flexible financial products you can take advantage of, including the following four.

1. Factoring

Factoring (also called accounts receivable financing) is a great option if there’s a delay between project completion and payment. Accounts receivable can pose a big risk since you’re not guaranteed payment for work you’ve already done, but factoring takes that risk and turns it into an asset. How does it work? A lender buys your accounts receivable at a percentage of the total value, then takes on the responsibility of collecting. You get reliable, quick funding, without having to undergo a credit check or put up collateral.

2. Equipment Financing

Equipment can get expensive, especially when you’re building. Outright purchasing can set your company back financially, but accessing the right tools is essential to doing your job well and safely. Fortunately, there’s a solution: equipment financing.

This particular type of lending allows you to pay on installment for a machine, with said machine acting as the collateral. This means you get use of equipment before fully paying for it, which can increase profit and efficiency. In a sense, equipment financing may pay for itself.

3. Lines of Credit

If your biggest hurdle is a lack of flexible funding, a line of credit may be for you. Instead of taking a lump sum, you can access lines of credit whenever you need, up to a maximum loan amount. As you pay back the loan, the principal becomes accessible again, which makes lines of credit loans that keep on giving. Even better, you don’t start accumulating interest until you make a draw on the line, and interest is calculated only on the amount you’ve drawn.

4. SBA Loan

Small construction businesses can face an uphill battle when it comes to loan approvals, since they’re not as established as mega corporations and don’t have the same resources. Even if you do get approved, many traditional loans are designed for large companies and may not be the best fit for a smaller enterprise. However, the SBA loans, which are facilitated by the Small Business Administration, are specifically designed to meet the needs of small businesses. Not only are they easier to get, but they’re often guaranteed by the SBA, so terms are more favorable.