The companies can use business construction loans to raise capital to create new facilities or renovate existing ones. These loans ensure that companies have the funds necessary to finish their projects by covering expenses for things like labor, materials, licenses, and site acquisition. Construction often involves the use of short-term loans that are paid back gradually as the project moves forward. After the project is finished, borrowers may decide to convert their loan into an extended credit line. Before authorizing construction finance, lenders take into account a number of factors, including projected future profitability, project timelines, and financial stability.