Each of the products listed above can suit a different type of expense or cash flow issue. For example, let’s say a business owner needs a little extra money to purchase more supplies, new equipment or cover payroll until the next phase of the project is complete. Logical solutions to these construction company dilemmas include a short-term working capital loan or business lines of credit.

The decision typically depends on how long it will take you to repay the loan amount, as well as the likelihood of needing a construction loan again soon. Sudden expenses and cash flow shortages are prevalent with construction businesses. Thus, a business construction line of credit would prevent you from having to apply for more funding every time you’re unable to cover a short-term expense.

Maybe you’ve just completed a project, and you’re looking to ramp up for your next one. However, compensation isn’t scheduled to come in for a few weeks. In this case, it might help to consider accounts receivable factoring. The small business loan provider purchases the account for a discount price and then assumes the responsibility of collecting from your customer. Once the payment is collected, you receive the remainder from the initial sale, minus fees.

It’s important to note that construction loans can be designed to solve multiple problems. You might need to hire more workers, pay vendors upfront, or obtain special permits for the same project. We can tailor your loan amount and terms to accommodate each expense of your contracting business, even if they occur at different intervals.