When it comes to working capital for the construction businesses, loans usually don't cut it because of the way the debt product is structured. With a Term Loan, the money only gets used once and once funds are depleted, there is no more availability to access funds. Whereas with a line of credit, money can be constantly drawn and repaid as receivables come in and expenses are paid out.
To be approved for a Line of Credit the Business must meet these minimum requirements:
Time in Business: 3+ years
Owner FICO: 650+
Annual Gross Revenue: $500,000+
