What are the top construction financing mistakes to avoid in 2025?

[SteelBuilder500]

With changes in the market and new financing options popping up, I’m curious what common errors contractors or builders are making when securing funding. Are there specific things to watch out for, like overestimating cash flow or not planning for unforeseen costs? Would love to hear your insights!

 

[Maxx_03]

Great question! one big mistake I’ve seen (and made ) is underestimating how long payments actually take to come in. It can seriously mess with your cash flow if you're not prepared. Also, not setting aside enough for unexpected delays or material price jumps can bite you hard.

 

[Denmark Arthurs]

Absolutely! Overlooking contingency planning is a big one. A lot of folks still skip budgeting at least 10–15% for overruns, and with how volatile material costs have been, that can tank a project fast. Also, not fully understanding loan draw schedules can cause serious timing issues with suppliers and subs.

 

[philipBrown]

Totally feel this and been burned before by not padding the budget for surprises. Loan draw timing caught me off guard too. Having a good cash flow buffer and reading the fine print saved my last project from going sideways.