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Compare · 2026

Line of Credit vs Term Loan for Growth

Fund growth with reusable credit or a one-time loan? Here's which fits a scaling contractor.

Short answer: A line of credit funds the ongoing working-capital swings of growth — carrying more crews and materials across more jobs — reusable as you repay. A term loan funds a single scale-up investment like equipment or a new location. Growing contractors often use a line for capacity and a term loan for the big moves.

Reviewed by the Siteline Capital Funding Team · Updated July 2026

How funding works, step by step

From application to funding in four steps — most contractors complete it within a day.

1

Apply in 5 minutes

Complete a short online application. It uses a soft credit pull that does not affect your score.

2

We review your deposits

Approval is based on your last 3 months of business bank statements — not tax returns or the contract.

3

Get your offer

Review your amount and terms up front, with any fees disclosed before you accept. No obligation.

4

Get funded

Sign and receive funds by ACH, often within 24 hours of approval.

Line of credit vs term loan

How the two options compare, in plain terms.

CriteriaLine of CreditTerm Loan
StructureRevolvingLump sum
FundsOngoing capacityOne scale-up move
Best forMore jobs at onceEquipment, location
ReusableYesNo
Range$10K – $500K$25K – $5M

Why growing contractors choose us

  • Built for multi-site and growing contractors
  • FICO 500+ accepted; approval on revenue
  • Funds in as little as 24 hours
  • Underwritten on deposits, not the contract
  • Structured to scale as you grow
  • No tax returns — 3 months of bank statements

What you need to apply

  • US-based construction or contracting business
  • 6+ months in business
  • ~$30,000+ in monthly revenue
  • Last 3 months of bank statements
  • Valid EIN and business bank account

Frequently asked questions

Which is better for scaling a contracting business?
A line of credit funds ongoing capacity as you take more work; a term loan funds a single big scale-up like equipment or a location. Many growing contractors use both.
How fast can I get funded?
Most contractors fund within 24 hours of approval, with a 5-minute application and a soft credit pull.
Do I need good credit?
No — FICO 500+ can qualify because approval is weighted toward revenue and deposits.
Is this a business loan or a cash advance?
Both are available. The right structure depends on your revenue, credit, and how you prefer to repay — fixed payments or a share of your deposits. We show you the options you qualify for before you commit.
What can I use the funds for?
Any legitimate business purpose — payroll, materials, equipment, mobilization, covering the gap between draws, or growth. There are no restrictions on how you deploy working capital.
Are there any upfront fees to apply?
No. Applying and getting a decision is free, and any fees are disclosed in your offer before you accept — so there are no surprises.

Sources & further reading

Figures on this page are typical 2026 industry ranges provided for general information; your actual terms are set at application.

Fund your growth

Apply in 5 minutes with a soft credit pull.

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Comparisons reflect typical 2026 industry structures for general information and vary by lender and underwriting; your actual terms are set at application. Product and company names referenced are the property of their respective owners.