Construction businesses have a lot of financing needs, but their services also in high demand. This means that lenders are generally more than happy to work with general contractors to provide financing as required, even in the case of small businesses that handle construction. What type of loans and leases are available for construction companies?
Equipment Financing
Getting a loan for equipment makes a lot of sense for general contractors. In fact, this should be one of your business’s first goals. As your company begins generating more profits, it’s smart to reinvest some of the revenue towards another equipment loan or lease as needed.
Why is equipment financing so useful for general contractors? For one thing, it’s flexible. This type of loan can cover virtually any type of equipment you need, both large and small. You can get financing for backhoes, skid loaders, loaders, dump trucks and other heavy machinery. You can also purchase items such as compressors, compactors, tools and specialized equipment.
Getting an equipment loan helps you purchase these items comfortably. You can get an accessible down payment with excellent interest rates and up to 25 years to pay back the loan. All the while, your equipment is driving significant profits. It speeds up your work and lets you take on more projects and larger jobs.
Contractor Loans for Projects
Another essential type of financing for general contractors are construction loans. These tools can make your work much easier. With a construction loan, you have money to purchase materials needed for any job, whether commercial or residential. That way, you don’t have to dig into your savings or revenue from other projects to get started. It’s easier to manage multiple projects or several different teams with financing, maximizing your profits.
Many lenders also offer construction lines of credit. For construction companies that do a lot of remodeling, lines of credit are an incredible tool. Coming across surprises isn’t the end of the world when you always have a quick source of working capital available. If demolition reveals structural problems, mold or other emergencies, you have financing to buy the materials needed without halting construction.
Working Capital Loans
Every small business can benefit from working capital financing to increase cash flow, and construction businesses are no exception. With a working capital loan, you have more freedom to make the right decisions for your team. You don’t have to pass up on valuable opportunities for lack of funds. Working capital can help you cover payroll, hire more employees, advertise online and do many other things.
