Fund your next construction project.
A construction line of credit is a type of loan that provides funding for construction projects. This type of loan helps contractors, builders, and developers manage cash flow requirements during different phases of construction work.
If you are interested in securing a construction line of credit, start by applying through us at Upstate Bank. We will then assess the nature of your construction project and your creditworthiness. Once the line of credit is approved, we will assign a maximum credit limit, which represents the total amount of funds available for the construction project. The limit we set will be based on your financial history, credit score, and the estimated cost of the project.
Once your construction project progresses, you can access funds from your construction line of credit as needed. When you do this, it is known as a “draw.” You can then use the funds you withdraw to cover project-related expenses, such as labor, materials, permits, and equipment.
With a construction line of credit, you are only charged interest on the funds you withdraw. You must also make regular interest payments on the outstanding balance. At the end of your construction project, you may need to pay the principal amount back in full or according to an agreed-upon repayment schedule.
We have provided construction lines of credit for many projects in Upstate New York. If you have any questions or would like to apply for a construction line of credit, please contact us today.