The increasing popularity of alternative business lenders is largely attributed to their ability to accommodate unusual cash flow situations. Market fluctuations, unforeseen expenses, and hectic daily schedules no longer have to stop you from accessing advantageous small business loans. But companies like United Capital Source still have a long way to go until our strategies and requirements become common knowledge. Standing in the way are myriad myths about small business loans that make younger, smaller companies think no business lender will work with them. It’s hard to blame them, considering how radically different today’s funding options are from generations’ past.
This is especially the case for construction contractors, many of whom have never experienced what could be called a completely “normal” project. But we have found that with the right terms and payment structure, all the industry-wide problems in the world can’t stop a business from repaying debt.
1. It’s okay to need money for multiple expenses
Traditional business loans from banks are simple, and not in a good way. “Cookie-cutter” is probably a better word for them. Their terms are designed to solve a single problem or cover a single lump of expenses. For example, a popular business funding program for construction contractors was the bridge loan. Funds were used to cover payroll and other operational expenses until compensation comes in.
But let’s say a construction company needs more than this in order to complete a project on time. Maybe the company needs to hire a certain number of workers who are licensed to do this type of work. Maybe the company needs to pay vendors upfront. Maybe the project requires special licenses, permits, inspections, and insurance fees.
Banks are typically not willing to take a larger list of expenses into account when developing terms. But companies like United Capital Source regularly tailor working capital loans to finance several different types of expenses that must be taken care of at different times. This is particularly important for establishing long-term relationships with big customers or getting your foot in the door with a new level of clientele.
2. You don’t need an expansive business plan
Nearly all bank loans require a lengthy, detailed business plan. Regardless of how unpredictable your industry and cash flow is. Goals and plans to achieve them are obviously essential but we do not expect you to have your entire future figured out. Odds are, you’re far too stressed about the present to think about where you’ll be next year. Don’t worry about being judged if your projections aren’t 100% accurate or you aren’t sure how much money you’ll need when business slows down.
3. You can contact us at any time
Companies like United Capital Source can act quickly and are used to working on tight deadlines. It doesn’t matter if you need funding right before a project is scheduled to begin, in the middle of a project, or while you are searching for your next job. We can even approve certain working capital loans, like merchant cash advances or accounts receivable factoring, when cash flow is very weak.
Construction contractors know all about the countless external factors or unforeseen expenses that can delay a project. Examples include contractual changes, inclement weather, or broken equipment. If the issue is dire enough, we can approve and distribute funding in less than 24 hours, and you wouldn’t necessarily have to make significant payments right away.
4. We will help you make good spending decisions
Without additional funding, construction contractors often wait until the last minute to gather the resources required for their next project. And since construction projects have only become more complex as of late, contractors must continuously obtain an increasing amount of equipment and workers. This often leads to contractors making incorrect decisions when it comes to equipment, inventory, and budgeting in general. They might also underestimate the likelihood of unforeseen expenses. But the business financing experts at United Capital Source have too much experience with construction contractors to let them make hasty financial decisions.
All you have to do is tell us everything that’s on your plate and we will save you from spending any more than you absolutely should. This goes for all projects, even those we might not be directly involved in.
5. No schedule is too busy for us
Most construction contractors aren’t used to filling out paperwork because they have employees who usually do this for them. They are too busy for tedious, back-and-forth communication. These are two things you don’t have to worry about when you work with a company like United Capital Source. Our application process is quick and easy, and everything you need to know can be laid out with just a single phone call or email.
We know how hectic your schedule is and are therefore happy to work around it. Trust us when we say that not a single part of this entire process will take you away from your most important daily responsibilities.