Contractor Financing Programs
Construction contractors face unique financing needs that differ significantly from other real estate investors or business owners. Our contractor financing programs address the specific challenges of the building industry, including extended project timelines, retention holdbacks, material cost fluctuations, and the gap between project completion and final payment. We structure loans that provide working capital stability throughout the construction cycle.
Our spec home construction loans fund the entire building process from lot acquisition through certificate of occupancy. Unlike bank construction loans that require presales or substantial equity, our programs evaluate the project potential and your construction capability to determine funding capacity. This approach allows you to build inventory for the resale market without waiting for buyer contracts. Loan amounts cover land payoff, hard construction costs, soft costs including permits and fees, and interest reserves during the building period.
For contractors building custom homes or completing contract construction, we provide acquisition and construction financing that aligns with your client payment schedules. These loans accommodate progress billing structures and milestone-based disbursements that mirror your project cash flow needs. We understand that custom construction often involves design changes, upgrade selections, and client-driven modifications, and our lending programs include flexibility for reasonable scope adjustments during construction.
- Spec home construction loans without presale requirements
- Custom construction financing aligned with payment schedules
- Funding for land, construction costs, and soft costs
Spec Home Building and Development Financing
Speculative home building, constructing homes without presold buyers, offers significant profit potential but requires capital commitment before revenue generation begins. Our spec home financing programs provide the capital necessary to acquire lots, complete construction, and hold inventory until buyer acquisition. This funding approach enables contractors to build strategically for market demand rather than waiting for custom contracts.
We finance spec homes across Palm Beach County's diverse residential markets, from entry-level homes in developing communities to luxury residences in established neighborhoods. Loan structuring considers local market conditions, absorption rates, and competitive inventory levels to ensure appropriate terms for each project. We work with contractors who understand their target markets and can deliver homes that meet buyer expectations and achieve profitable sales.
For contractors developing multiple spec homes simultaneously, we offer portfolio financing facilities that streamline funding across several projects. These master facilities reduce per-project closing costs, simplify draw administration, and provide capital efficiency as you move between projects at different construction stages. Our relationship-based approach to spec home lending rewards successful contractors with improved terms, higher leverage, and streamlined processing on subsequent projects.
- Financing for speculative homes without buyer contracts
- Market-specific loan structuring for diverse price points
- Portfolio facilities for multiple concurrent projects
Working Capital and Project-Based Lending
Beyond project-specific construction financing, contractors require working capital to maintain operations, pay overhead during project gaps, and fund business expansion. Our working capital loans for construction contractors use real estate collateral, whether completed projects, equipment, or investment properties, to provide liquidity without the restrictive covenants of traditional business lending.
Project-based lending addresses the unique cash flow challenges of construction work, where significant expenses precede revenue recognition by months. We structure loans that bridge the gap between construction completion and final payment, including holdback periods and punch list completion. This interim funding ensures you can start new projects while waiting for final settlement on completed work.
Equipment financing and refinancing provide additional capital sources for contractors with significant machinery investments. We can refinance existing equipment loans to improve cash flow, or provide capital secured by owned equipment for business expansion. For contractors with real estate holdings, cash-out refinancing unlocks equity that can be deployed into construction operations or new project acquisition.
- Working capital loans using real estate collateral
- Interim funding between project completion and final payment
- Equipment financing and cash-out refinancing options