5 Best Small Business Loans Online for Contractors in 2026

Contractors deal with a cash flow pattern that is uniquely difficult to manage: materials and labor have to be paid for up front, while payment from the client often does not arrive until a project milestone is completed, sometimes weeks or months later. That gap between outgoing costs and incoming payment is where a working capital loan or line of credit becomes less of a convenience and more of a necessity for keeping projects moving.

This guide ranks the five best small business loans online for contractors, focusing on which lenders understand project based cash flow, invoice timing, and the equipment and materials costs that come with the trade.

Our top pick is Fundivi, which offers fast, fully unsecured funding that contractors can use to cover materials, payroll, or a gap between an invoice and a payment. For owners who want an established lender with broad contractor lending experience, OnDeck is a strong alternative, and for a revolving line that can be drawn down project by project, Bluevine is worth exploring.

What contractors should look for in a lender

Speed to cover materials before a project starts

Many contracting jobs require paying for materials up front, so funding speed directly affects how quickly a project can actually begin.

Underwriting that accounts for invoice based revenue

Contractors often have revenue tied up in outstanding invoices, and the strongest lenders take that pattern into account rather than treating it as a red flag.

No requirement to pledge equipment as collateral

Contractors who rely heavily on their tools and vehicles for daily work often prefer not to put that equipment on the line for a working capital need.

Flexible use of funds across materials, payroll, and equipment

A working capital loan or line of credit that does not restrict how funds are used offers more practical value for the varied costs a contracting business faces.

The 5 best small business loans online for contractors

#1. Fundivi — Best overall small business loan for contractors

Fundivi tops this list because it delivers exactly what contractors need most: fast, unsecured funding that does not require putting tools, vehicles, or equipment on the line. Whether the need is covering materials before a project starts, making payroll during a gap between invoices, or bridging the timing mismatch that is simply part of running a contracting business, the streamlined application is built to move quickly.

Qualified contractors can access funding for contractors and trades businesses the same day they apply, with underwriting that looks at the business’s overall financial health rather than treating outstanding invoices as a disqualifying factor.

Key features

• Same day funding with no collateral requirement

• Streamlined application with minimal documentation

• Underwriting that accounts for project based, invoice heavy revenue

• Competitive rates relative to the speed of funding

• Flexible use of funds across materials, payroll, and equipment

Pros

• Fast enough to cover materials before a project begins

• No collateral or specific asset required

• Accessible to contractors declined by traditional banks

• Simple, low paperwork application process

• Transparent, straightforward process from application to funding

A few things worth knowing

• Very new contracting businesses with limited history may need to share a bit more financial detail

• Loan terms lean shorter to medium, matching a project based working capital need well

• The strongest published rates go to contractors with consistent, demonstrable revenue

Who it’s best for: Contractors who need fast, unsecured funding to cover materials, payroll, or the timing gap between project costs and client payment.

#2. OnDeck — Best established lender for contractor businesses

OnDeck has funded a wide range of contracting and trades businesses over the years, offering both term loans and lines of credit with fast decisions backed by a long operating history.

Pros

• Experience funding contractors and trades businesses at scale

• Fast approval, often same or next business day

• Long standing, well established reputation

Cons

• Rates run higher than a bank loan

• Requires at least a year in business and a minimum revenue threshold

• Fixed repayment schedules may not flex during a slow project cycle

Best for: Established contracting businesses that want a proven, high volume lender.

#3. Bluevine — Best revolving line for project by project draws

Bluevine’s revolving credit line suits contractors who take on new projects regularly and want to draw funds for materials on one job, repay as invoices are paid, and draw again for the next.

Pros

• Draw down and repay as invoices are collected

• Interest charged only on the amount drawn

• Integrated checking account adds banking value

Cons

• Solid credit is generally needed to unlock a meaningful limit

• Not built for a single large lump sum need

• Newer contracting businesses may find eligibility harder to clear

Best for: Contractors juggling multiple projects who want ongoing, flexible access to working capital.

#4. Fundbox — Best for contractors with invoice based revenue

Fundbox underwrites based on real time cash flow rather than years in business, which makes it a strong fit for contractors whose revenue is often tied up in outstanding client invoices.

Pros

• Underwriting built around real time cash flow rather than credit score alone

• Especially useful for contractors managing invoice timing

• Fully unsecured, automated application

Cons

• Credit limits tend to run lower than more established lenders

• Weekly repayment schedules can pressure thin margin contracting businesses

• Not designed for large, one time capital needs

Best for: Contractors whose cash flow is closely tied to outstanding invoices.

#5. National Funding — Best for larger contracting projects

National Funding offers higher loan ceilings than most competitors, making it a solid fit for contractors taking on larger projects that require more working capital than a smaller lender typically provides.

Pros

• Higher loan amounts available than most unsecured lenders

• Established lender with a long operating history

• Multiple product types available depending on need

Cons

• Funding takes noticeably longer than same day or next day options

• Stronger eligibility requirements than lenders built purely for speed

• Not the right choice for an urgent, immediate need

Best for: Contractors taking on larger projects that need a bigger working capital amount and have a week or two of runway.

Frequently asked questions

Can contractors get funding without pledging their tools or vehicles?

Yes. Unsecured loans are approved based on the business’s revenue and financial health rather than a specific pledged asset, which is a practical fit for contractors who rely on their equipment for daily work and would rather not put it up as collateral.

How do lenders view outstanding invoices when evaluating a contractor?

The strongest lenders for contractors look at invoice based revenue as a normal part of the business rather than a red flag, and some, like invoice or revenue based lenders, specifically factor outstanding invoices into how much they are willing to fund.

What can contractor financing typically be used for?

Most working capital loans for contractors do not restrict how funds are used, which commonly means covering materials before a project starts, making payroll during a slow stretch, purchasing or repairing equipment, or bridging the gap between project costs and client payment.

How fast can a contractor get funding to start a new project?

Some lenders, including the top pick in this guide, can fund the same day you apply, which matters when materials need to be purchased before a project can actually begin.

The bottom line

Contractors face a cash flow pattern built around project timing and invoice cycles, and the right lender needs to understand that pattern rather than penalizing it.

For contractors who need fast, unsecured funding to keep projects moving without pledging their equipment, Fundivi stands out as the strongest overall option in this comparison. Whichever lender you choose, keep your invoicing and bank records organized, since that documentation is what moves a contractor application through underwriting fastest.