The current value of GDP of the U.S. construction industry is about to hit 679.65 USD billion by the end of the current quarter. Our construction industry, reportedly, spent $1,231 billion as expenditure.
Industry experts stated, the next five years are expected to be growth years and we will observe a positive influx in the demand of retail buildings.
With the numbers spiking every year, small construction companies should grow their businesses along with the larger ones. But due to financial lacking, they put a hold on their dreams.
Fortunately, we don’t want you to stop dreaming. Financing a construction business is a huge deal and we offer multiple construction business loans; you can take advantage of them.
Can a Construction Business Loan help you grow?
Get your hands on extra Cash Flow:
Utilize it to maintain your working capital in the rainy days.
Enhance your work scope.
Increase your Man Power:
Hire more employees to tackle big projects.
More manpower, more productivity, and more profits.
Stand up to your Competitors:
Have extra cash to fall on when tackling new projects.
Use the cash to compete with larger companies.
Update your Tools:
Lease or purchase new equipment.
Buy more trucks, machinery or tools.
Business Loan for Construction Services
The strict sets of requirement and long-wearing lending process exclude banks from the funding game. Most small construction business owners get tired of the complicated funds lending process. So, they prefer alternative lenders, and because of their quick lending process and affordable prices, owners tend to avoid traditional lenders.
Alternative Business Loans for Construction Businesses
We understand the whole ceremony of choosing the right business loan can be exhausting. In order to lift up some weight over your shoulders-here is a list of construction business loans:
- SBA Loans
The most secured type of a loan with a government guarantee.
o Their flexible rates make is easy for construction business owners to purchase land, renovate work area, and to buy other construction-related machinery.
o SBA 7(a) can help your construction business in managing the cash flow, funding a new project, purchasing supplies, and even refinancing existing debt.
- Equipment Financing/Leasing
o This loan makes it easy for new construction companies to obtain an unsecured business loan.
o Newly purchased equipment can act as collateral.
o The lender helps you 100% to purchase new equipment.
o You can choose the equipment of your own choice at a very competitive rate.
- Commercial Loans
o Best fit for construction companies looking to construct a building, condo, residential apartments, and shopping malls, and so on.
o These loans provide debt-based financing between the lender and your company.
o Commercial loans carry out reasonable underwriting criteria.
o You need to pay a full interest rate over a set period of time.
o When applying, they ask for: business’ annual revenue, cash flow (both inflow and outflow), balance sheets as well as profit and loss sheets.
- Business Line of Credit
o These loans can help you manage business contingencies.
o Can easily cover up the cash flow problems with Business Line of Credit Loan.
o A line of credit can also be used for purchasing inventory and supplies.
o Strategically plan new project costs, and cover its cost from funds.
o Use can use the loan for payroll as well as for buying new equipment.
- Asset-Based Financing
o They are designed to work as revolving lines of credit; this definitive structure allows construction businesses to borrow from their valuable assets to cover operational and other unexpected expenses.
o This type of alternative financing is usually used for business growth purposes.
So, if you are looking for more information regarding the mechanics of construction loans, we can help you get the most of it. You can call us on our toll-free number (833) 827-4412. While you are at it, fill out your free online application form, if you’re ready to apply for construction business loans.
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