Weststone Lending explains financing for contractors in Elyria, Ohio: construction equipment financing, business loans for contractors, roofing company financing, retainage, funding for newer construction companies, lines of credit between progress payments, Lorain County, OH housing permits, specialty trades and a worked retainage example. Figures come from County Business Patterns, Nonemployer Statistics and the Building Permits Survey.
Construction Equipment Financing Near Elyria, OH for Excavators, Skid Steers and Lifts
Construction equipment runs from mini excavators, skid steers and compact track loaders to boom lifts, scissor lifts, trailers, dump trucks, compactors and concrete tools. A partner reads the quote, the machine's hours if used, and its resale market. Attachments, delivery and training are soft costs some partners include.
Dealer programs, banks and equipment lenders all finance construction machines. The article on where to finance a mini excavator compares them, and the equipment financing page covers loans and leases.
Business Loans for Contractors: Lorain County, OH Construction in 2023
Construction employers in Lorain County, OH numbered 584 in 2023, paying $239.2 million to 3,729 workers (County Business Patterns 2023). Contractors with fewer than five on payroll numbered 379, which is 64.9% of the sector. 157 were in construction of buildings and 414 were specialty trade contractors.
Nonemployer Statistics separately counted 2,550 construction businesses without paid employees in 2024, 628 in construction of buildings and 1,899 in specialty trades (Nonemployer Statistics 2024).
Roofing Company Financing for Trucks, Lifts and Material
The county had 28 roofing contractors with employees in 2023 (County Business Patterns 2023). A roofing company buys trucks, trailers, material lifts, dump trailers and safety gear, and it pays for shingles and underlayment before the homeowner or insurer pays. Equipment financing fits the trucks and lifts; a line of credit fits material and payroll.
Insurance-paid roofs add another layer of waiting: the check may come from an insurer in stages. A partner reads how the contractor's receivables are paid.
Business Loans for a Construction Company Carrying Retainage
Retainage is a share of each progress payment the owner or general contractor holds until the job is finished and accepted. A subcontractor earning on a commercial job may wait weeks or months after completion for the retained amount. Meanwhile, its crews and suppliers have been paid.
A line of credit drawn against that wait and paid down when retainage is released fits the pattern. Partners read contracts and payment applications to size it.
How to Get Funding for a Construction Company Without a Long Track Record
A newer construction company has short financial history, so partners lean on what is available: the owner's experience in the trade, personal credit, current contracts and the equipment being bought. Equipment financing secured by the machine gives a partner something concrete to weigh, which an unsecured loan lacks.
Signed contracts and a backlog list help. So does keeping business deposits separate from personal accounts from the first day.
Line of Credit for a Construction Business Between Progress Payments
Contractors bill on progress payments: draws on a schedule tied to stages of work. Payroll is weekly. Material arrives before the stage it belongs to. A line of credit drawn for payroll and material and paid down when each draw arrives keeps the gap covered without a new loan for each job.
Partners read the work-in-progress schedule: contract values, billed to date, costs to date and expected completion.
Lorain County, OH Housing Units Authorized, 2023 to 2025, and What They Mean for Trades
Building permits in Lorain County, OH covered 950 new housing units in 2023, rose to 1,331 in 2024 and settled at 1,082 in 2025 (Census Building Permits Survey). Of the 2025 units, 949 were in single-family buildings; permits for all 1,082 units carried a reported valuation of $353.8 million (Census Building Permits Survey). These are new residential units only; remodeling and commercial work are not counted.
The county had 132 residential building contractors and 25 nonresidential building contractors with employees in 2023 (County Business Patterns 2023).
Specialty Trades: Plumbing, HVAC, Electrical and Finishing Contractors
Specialty trades in the county included 79 plumbing, heating and air-conditioning contractors, 50 electrical contractors, 28 roofers, 102 building finishing contractors and 80 other specialty trade contractors with employees in 2023 (County Business Patterns 2023). Vans, test equipment, lifts and stock of parts are their usual purchases.
Service vans fit equipment financing; parts stock fits inventory financing; payroll between jobs fits a line.
Illustration: Retainage Held on a Commercial Job
Illustration only, invented figures: a subcontractor finishes a $480,000 commercial job and the general contractor holds 10% retainage, $48,000, until final acceptance about 60 days later. If the subcontractor draws $48,000 on a line to cover payroll and supplier bills, interest at an invented annual rate of 11% for those 60 days comes to about $868 (our arithmetic).
When the retainage is released, the line is paid down and available for the next job.
Job Lists, WIP Schedules and Other Contractor Records a Partner Reads
- Business bank statements and tax returns.
- A work-in-progress schedule and backlog list.
- Contracts and payment applications for the jobs in question.
- Equipment quotes, with hours for used machines.
- Payment and balance for each equipment loan or lease already on the books.
The Elyria, OH page sets out county construction figures.
By Weststone Lending · Updated
