Working Capital & Business Loans for Contractors in Lexington, KY

Scan the options below, find the one that matches your credit profile and funding timeline, and go straight to that guide — the orientation that follows is for contractors who want to compare before they choose.

What to Know Before You Apply

Construction cash flow problems in Lexington follow a familiar pattern: you win a bid, front payroll and materials, and then wait 30–90 days for the GC or owner to pay. The financing product that fixes that gap depends on three things: how fast you need money, what your credit looks like, and whether you have invoices, equipment, or revenue to pledge.

Quick comparison: the main products

Product	Typical APR	Speed	Best for
Business line of credit	10–15%	1–3 days	Ongoing payroll & material gaps
Working capital loan	15–30%+	1–2 days	Lump-sum bridge between milestones
SBA 7(a) loan	8–11%	30–45 days	Growth capital, longer payoff
Invoice factoring	1–5% fee	24–48 hrs	Slow-paying GC receivables
Equipment financing	7–20%	2–5 days	Buying or refinancing gear

Lines of credit are the workhorse for most Lexington trade contractors — draw what you need, repay it, draw again. Lenders typically want 680+ FICO, $250,000 or more in annual revenue, and 12 months of bank statements. Rates sit at 10–15% APR for qualified borrowers. If your FICO is in the 640–679 fair-credit range, expect to pay 1–3 percentage points above that prime pricing and face tighter draw limits.

Working capital loans are a lump-sum advance repaid over 6–24 months — useful when you know exactly how much you need to cover a specific gap. Approval can be instant through online lenders, with funding the next business day, but the convenience costs: APR typically runs 15–30% or higher. These work best when the margin on the project clearly exceeds the financing cost.

Invoice factoring sidesteps your credit score almost entirely. A factoring company buys your unpaid invoices at 80–90% of face value and collects from your GC or owner directly. The fee — usually 1–5% of the invoice — comes out of the remaining balance at settlement. For Lexington subcontractors carrying 60-day receivables, this is often the fastest path to payroll coverage. The full breakdown of working capital and bridge financing options specific to Lexington is at constructionworkingcapital.com/lexington-ky.

SBA 7(a) loans offer the lowest rates — 8–11% APR — and the highest limits, up to $5,000,000, with the SBA guaranteeing up to 85% of the balance. But the bar is real: 640+ FICO, 24 months in business, a debt-service coverage ratio of at least 1.25x, and total monthly debt service under 25% of gross monthly revenue. Approval runs 30–45 days, so SBA is a planning tool, not a payroll emergency fix. Contractors in similar markets — from Atlanta, GA to Arlington, TX — consistently report SBA as their best long-term rate but their worst short-term option.

Equipment financing is worth a separate look if you're buying a skid steer, aerial lift, or compressor. Rates for contractors with 700+ FICO typically run 7–10% APR; fair-credit borrowers pay more. Terms stretch to 10 years under SBA 7(a) for equipment. One practical angle: equipment purchased in 2026 may qualify for the Section 179 deduction up to $1,220,000, which can meaningfully reduce the net cost of financing. Lexington contractors comparing loan, lease, and SBA options for specific machinery will find a detailed breakdown at constructionequipmentfinancing.finance/lexington-ky.

What trips people up

The most common rejection reasons aren't credit scores — they're documentation gaps. Lenders reviewing working capital applications typically pull 12 months of bank statements and want to see consistent deposits, not just a single strong month. Seasonal contractors who front-load revenue in spring and summer need to show lenders how they cover debt service in slower months. If your DSCR dips below 1.25x during any quarter, flag that upfront and frame it against your annual average.

For bad-credit construction loans (sub-640 FICO), invoice factoring or a short-term revenue-based advance are typically the accessible entry points — not SBA. Use those to bridge while you build 6–12 months of payment history, then refinance into a line of credit at a more competitive rate.