Specializing In Construction Business Loans For Contractors & Builders

After assessing your business’s financial health, a lender may conclude that a construction loan would do more harm than good to your cash flow at this moment. In this case, we might recommend another tool for financing your small business, like a business credit card or even a personal loan. The business credit card and personal loan options are usually much easier to qualify for than small business loans. If you apply for business credit cards, you may not get the credit limit you need right away, but you can use a credit card as a tool to increase your credit scores.

If you want to improve your credit score as much as possible before applying, you should consider these credit repair services. We can help you identify the issues that keep your credit score down and develop effective solutions for eliminating them.

Why Do Construction Companies & Contractors Need Financing?

In most cases, construction contractors don’t need financing because they aren’t getting enough work. It’s because they are getting more work than their current resources, and the cash flow cycle will allow. Construction projects are becoming increasingly complex. They require more advanced equipment, to pay more workers, and more time. That means more upfront expenses and more time until you receive compensation. Even if you could afford these expenses, you’d have very little funding leftover to use until your first billing phase. This could be weeks or even months away.

Also, when you take on more projects, you have more bills to manage. It’s challenging to stay on top of your payments when your primary concern is completing the project in a timely fashion.

How Do Contractors Finance Construction Projects?

Construction contractors can finance projects with a myriad of business financing products. The product you choose depends on what you can qualify for and how much funding you need. If you’re looking for a significant amount, banks and credit unions carry the cheapest products with the most extended terms. However, these products are tough to qualify for. You’ll need excellent credit, perfect cash flow, plenty of money in the bank, and collateral such as real estate. If you can’t meet these requirements, you can still access substantial financial programs through companies like United Capital Source.

Banks and credit unions also prefer to lend more substantial amounts. Thus, if you’re looking to cover payroll, supplies, or other operational costs, companies like United Capital Source will be more willing to work with you. The size of your desired funding will not make you any less likely to earn approval.

How Long Can You Finance Construction Equipment?

At United Capital Source, we have access to new or used equipment financing for terms of up to five years. Terms and conditions for new or used construction equipment financing usually reflect the equipment’s relevancy. If we offered longer terms, someone could make payments long after the equipment in use has become irrelevant.

Can I Get a Construction Business Loan with Bad Credit?

Yes, six of the seven products mentioned above are accessible for borrowers with bad credit. Your interest rates may be higher, and your terms may be shorter because bad credit makes you more likely to default. However, if you have strong financial statements, cash flow, or can provide collateral, your bad credit may have less impact on your rates and terms. We can also customize your terms and payment frequency to ensure that you can make payments while staying current on other bills.

The only option that is not accessible with bad credit is SBA Loans. Compared to the other products, SBA Loans carry higher borrowing limits, lower rates, and longer terms. If you have bad credit, you’ll receive shorter terms to ensure you repay the loan in full.