How to fund your construction business
How working capital loans can be used to fund and grow a construction business.
What Is Working Capital?
Working capital is the available cash that your construction business has for day-to-day operations, and it is vital to your success and growth. You’ll need it to cover your short-term debt and keep your credit in good standing. Equally important, having the ability to cover your financial obligations in a timely manner is good for your company’s professional reputation. As an owner of a construction company, you have many obligations to consider such as, purchasing and/or leasing the right equipment, employee salaries. materials & supplies to keep current jobs on schedule, Marketing efforts to keep future jobs in the pipeline, Business taxes. Legal fees and business insurance, and much more!
As a construction business owner, I'm sure you are well aware the construction industry is cyclical and dependent on things such as housing data and the US Economy as a whole. so you might be familiar with slow sales cycles that can occasionally occur during the year. Obviously it is important that you have enough working capital on hand to meet all of your company’s financial obligations at all times To keep your business running during the slower times when revenues decrease, One way to acquire cash for your construction business is with a working capital loan.
What is a working capital loan?
You might be asking what exactly is a working capital loan and could it be a viable solution for my construction business...A working capital loan is a short-term loan option that can be used for pretty much any business expense. They generally make the most sense if you are using the loan proceeds to generate additional revenue, such as bidding & funding your next job, keeping up with payroll, and materials costs to keep your current jobs running smoothly and those progress payments from clients coming in steadily.
How to obtain a working capital loan.
Working capital loans are often preferred by construction companies and contractors over bank loans because they have a higher approval rate than conventional bank loans. Unlike those traditional bank loans, working capital loans have minimal paperwork, with a very short turn around time. This means your construction business usually can have access to critical funding very quickly without jumping through a bunch of hoops.
My company works with many construction companies looking to grow... We would be happy to walk you through your options.
Typically all the paperwork required to gain access to working capital funds are a few months of your business bank statements to make sure your business is active, and a 1 page ownership verification form.
Our Job Costing Calculator can help you calculate how much you need and how fast you need it. Get the Job Costing Calculator Here