It’s almost always difficult to secure financing for construction business. Being paid for completed projects requires that all work be finalized, but before that can happen, you need to pay for all the supplies and materials, and you will also need to pay all your employees. Of course, you could secure a loan in order to proceed with a given project, but there are other ways which you can obtain financing that may be more advantageous to your construction business.
One of the most popular funding sources for construction businesses are SBA loans, since their guaranteed by the government, and they make it much easier to acquire funding from a traditional lender. There are two types of loans available from the Small Business Administration, those being the SBA 7(a) loan and the CDC/504 loan.
Alternative lending has become very popular in recent years, as a number of alternative lenders have sprung up and are easily accessible online. One of the big advantages of working with an alternative lender is that you can acquire the funding you need in a much shorter period of time than you would through a traditional lender.
A business line of credit is one of the most flexible business arrangements you can have, because you can use it to cover literally any kind of expense your business encounters. As long as you maintain some kind of balance in the account, you’ll be able to continue drawing on that line of credit for any kind of operational expenses or other needs.
Commercial loans are generally available as a lump sum, and can be paid back over some time frame between one and 25 years. These are usually working capital loans which must be paid back in monthly installments that are comprised of both interest and principal components.
Need Funding for Your Construction Business?
If so, we may be able to provide the financial assistance you need. Contact us at Rushview Commercial Funding, so we can discuss some options which you may be eligible for.