An increase in construction and house renovations, both in the United States and globally, has led to an increase in the number of construction companies. However, demand in this industry is seasonal, which means building businesses experience significant dips in working capital.
Construction businesses may incur expenses for labor and supplies on a project before they are paid in full, even during busy seasons.
Construction finance for builders is one of the many challenges construction companies face. Access to funds is typically the deciding factor between companies that thrive in the construction sector and those that fail.
Construction firms should have a ready source of funding to help them keep their bills paid and gain the advantage of taking on opportunities when they arise.
Whenever gun and ammunition shops experience a decline in sales, they may face financial difficulties and often need additional funding to stay in operation. Fortunately for gun and ammunition shops, there are plenty of funding sources available. These sources allow them to get the financing they need quickly and easily.
We understand that securing financing for a gun shop is not easy, as most traditional banks will turn you down. However, you’ve found a reliable lender with experience in your industry.
An increase in construction and house renovations not only in the United States but also all over the world has led to an increase in the number of construction companies. However, demand in this industry is seasonal. Therefore, building businesses experience significant dips in working capital.
Construction businesses may incur expenses on labor and supplies for a project before they get paid in full even during busy seasons.
Construction finance for builders is one of the many challenges construction companies face. Access to funds is usually a deciding factor between companies that thrive in the construction sector and those firms that fail.
Construction firms should have a ready source of funding to help them keep their bills paid and give them the advantage of taking up opportunities when they arise.
A dedicated specialist from Gloven Capital will help you gather the insights to understand your financial goals, and make the right decisions.
Gloven Capital can help you from attracting new patients with marketing campaigns, to finding the ideal location for your next office.
A business construction loan can be used to help business owners to take up a new opportunity and take care of day-to-day expenses such as:
You require working capital to enable you to take on more construction work. Here are the advantages of getting financing for construction companies:
Financing is an important aspect of every construction company. Therefore, it is necessary to understand the financing options available to enable you to choose the most suitable investment option. Here are common funding sources for construction firms.
Your business can free up some cash to take care of operating expenses by leasing construction equipment. Additionally, the entire lease payment is usually considered a deductible business expense. You can arrange to lease most construction equipment. However, sometimes it can be an expensive option, and it has long-term effects on the ownership of the equipment.
A bank line of credit is an ideal form of financing for construction firms. The advantage of this funding option is that construction firms enjoy low-cost access to cash anytime they need it. However, the downside of this option is that small firms face challenges obtaining a line of credit from a traditional bank.
Some construction firms have the option of selling an ownership stake to get operating capital. However, sometimes it takes a long time to find a potential partner to invest in your business. Most construction firms fear to take on an equity partner because they will dilute the firm’s share of profits. Additionally, the firm might have to give up on some operational control of the firm.
The small business administration does not normally loan money to construction companies. Instead, they give partial assurance to approved creditors. SBA-backed loans offer reasonable interest rates as well as business-friendly repayment terms. Your business will be required to provide personal collateral, as it is the norm for all secured bank loans. Unfortunately, approval rates of SBA-backed loans are low as a result of relatively strict underwriting requirements.
A business card is a personal credit card that contains the business name on it. It is a useful source of short-term financing for the company’s supplies and materials. However, the financing cost of this option can be high, and the usage is usually restricted by the owner’s credit limit.
Alternative business loans and revenue-based funding are usually available. The best part about alternative financing is that it provides funds quickly with minimal paperwork. The cost of alternative financing is usually higher than other options. However, the options are better than conventional bank loans, which are relatively inaccessible.
It is not a loan. Revenue–based financing is a financing agreement where a construction firm agrees to sell a portion of its future revenue at a fixed discount. The option can provide $50,000 to $250,000 in funding in exchange for a portion of the company’s future business revenue.
Your construction company can choose any of the above financing options to get working capital. Accessing construction business loans should no longer be complicated or time-consuming. The financing options provide peace of mind knowing that you have access to the funds you require.
Scheduled maintenance and servicing is one thing, but there are many occasions when unexpected eventualities crop up relating to the key tools of business – the trucks. A trucking company must always have a source of funds or credit lines to remain afloat.
As part of modernizing trucking fleets, there is an anti-collision sensor system that mitigates head-on collisions that bring about the unwanted loss of property and lives.
This technology also comes as an incentive to the drivers as a safety measure in addition to good pay and guaranteeing them loans for truckers.
Part of the power of money is to have it when you need it. An institution offering trucking business loans serves a meaningful purpose if they cut the red tape and avail the required funds in good time or just when they are required.
Now that you the importance of construction finance for builders, the next step is to call our office and speak with a loan consultant. In some cases, offers can be provided with basic information and with a soft credit pull.
We’re here to help. Send us an email or call our experts at 1-305-890-9000
Gloven Capital offers business owners alternative working capital solutions through our various funding programs for business loans.
