Construction Line of Credit: How We Funded a $120K Project for $800 | LEND ON CAPITAL

How We Helped a General Contractor Fund a $120,000 Project for Only $800

Updated May 21, 2026   |   2 min read   |   By the Lend On Capital Funding Team

BUSINESS LINE OF CREDIT$150,000credit limitDrawn $40,000Available $110,000$120K projectfunded for the contractor$800 interestfor the 2 months usedReusable linedraw again, no reapplying

A construction line of credit can fund an entire job for next to nothing. When a general contractor in Orlando won a $120,000 renovation, they came to us needing $40,000 to start, before the client would pay a cent. We opened a revolving credit line, had them draw only what the job needed, and the whole thing cost $800 in interest. Here is how we did it.

BBB A+ accredited. 4.9 on Google, 4.8 on Trustpilot (212+ reviews). Over $500M delivered to 10,000+ businesses.

The 30-second version

  1. They won a $120,000 renovation, needed $40,000 to start materials, permits, crews
  2. We opened a $150,000 line of credit, they drew only $40,000 not a big lump-sum loan
  3. They repaid in 2 months when the client paid interest stops the day you repay
  4. Total interest: $800 charged only on what was used
  5. $110,000 stayed ready for the next job no reapplying

The problem they walked in with

THE JOB-START GAPDAY 0 · MONEY OUT-$40,000materials, permits, crews~DAY 60 · MONEY IN+$120,000client pays the invoice60-day gap

They had signed a $120,000 renovation. What they did not have was the cash to start it. Materials, permits, and crews all come due on day one, but the client would not pay until the work hit its milestones, 30 to 90 days out. The gap to get going was $40,000.

How we kept the cost at $800

WHAT IT COSTSYou drew $40,000 at 12% a year,and used it for just 2 months.Interest builds only on what you draw,and stops the day you repay.TOTAL INTEREST$800about $17,200 saved

We set them up with a $150,000 line of credit. A line of credit charges interest only on what you draw, only while it is out, so we kept it simple:

  • We had them draw $40,000, just enough to start, not the full limit.
  • They used it for about 2 months, then repaid it the moment the client paid.
  • At 12% a year, the interest came to $800. A full-year loan on the whole $150,000 would have run about $18,000.

Why we recommended a line of credit

HOW THE LINE WORKS1Draw $40,0002Repay whenclient pays3Full $150,000ready againReuse the line for the next job, with no new application.

We could have written a lump-sum loan. We did not, because for construction this works better:

  • Draw only what each job needs, not one big lump that charges interest from day one.
  • Pay only for what you use. The unused limit sits ready and costs nothing.
  • Reuse it for the next job. Once repaid, the full limit is back, with no new application.

For a one-time purchase like equipment, we point clients to a short-term loan or term loan instead. Plenty of our contractors keep a line of credit for jobs and a term loan for big buys.

What a construction line of credit covers

  • Materials and supplies
  • Permits and fees
  • Subcontractor payments
  • Crew payroll
  • Equipment rental
  • Mobilization costs
  • Change orders
  • Gaps while you wait on retainage

Funding for contractors · Lend On Capital

Want this for your next job?

Funding from $20K to $3M. Most decisions in 1 to 2 business days, with a soft credit pull.

Line of Credit

Amount$50K-$250K
RateFrom 8.99%
Term12-30 months

Short-Term

Amount$20K-$1M
RateFrom 11.99%
Term6-24 months

Long-Term US only

Amount$50K-$3M
RateFrom 6.99%
Term36-120 months
Apply OnlineAbout 60 seconds. Soft credit pull, no FICO impact. A funding manager matches the right program to your jobs.

Common questions

What is a construction line of credit?
A construction line of credit is a revolving credit limit a contractor draws from to cover job costs like materials, permits, payroll, and subcontractors before the client pays. You borrow only what you need, repay as invoices come in, and draw again without reapplying.
How much interest do you pay on a line of credit?
You pay interest only on what you draw, only while it is out. In this case, $40,000 used for 2 months at a 12% annual rate cost $800. The unused part of the limit costs nothing. Rates start from 8.99%.
Line of credit or term loan for construction, which is better?
A line of credit fits ongoing, unpredictable job costs because you draw only what you need and reuse it. A term loan fits a single large purchase with a fixed payback, like buying equipment. Many contractors use both.
How fast can a contractor get funded?
The application takes about 60 seconds, and most decisions come back within 1 to 2 business days. Approved funds can reach your account quickly. Approval is subject to credit review.
Will applying hurt my credit, and do I need collateral?
Applying uses a soft credit pull, so it does not affect your FICO score, and most programs need no collateral. Approval is based on your business revenue and bank statements. Approval is subject to credit review.

Want us to do the same for your next job?

Tell us about the job and we will size a line of credit to it. About 60 seconds to apply, a soft credit pull, and no FICO impact.

Check My Funding Options Book a Call
Or call 844-902-3080, Mon to Fri, 9:30 AM to 6:00 PM EST
Lend On Capital Funding Team

We have funded thousands of businesses across the US and Canada since 2020, including contractors and trades. We review real bank statements, not just credit scores.

Sources Federal Reserve Small Business Credit Survey. Client example based on a Lend On Capital funded project; figures are illustrative.

Lend On Capital is a financial technology company, not a bank. Rates start from 6.99% APR or equivalent factor rate, varying by program, term, and credit profile. Approval subject to credit review. Long-term funding is available in the US only. The interest example is illustrative and depends on your rate and draw.