Commercial contractors are the “unsung heroes” of economic developments. You are the experts- we wouldn’t get to experience living in luxury, navigate cross country roads in our travels, enjoy our favorite restaurants, and create the lifestyle we dream of with our loved ones.
No matter what the project calls for, contractors are always in high demand.
Often, commercial construction contractors wait until after a project has started to pursue funding, but this approach can lead to serious consequences. The best strategy is to consider the cost and method of any needed capital during the bidding process of a job, NOT during the job.
The absolute best time to acquire capital for your contracting business is when you do not need it but anticipate areas where you will be deploying capital shortly down the road.
Despite sizable growth in the industry, commercial contractors are still considered high-risk for many lenders due to the uncertainty of project scope and timelines. Many contractors simply cannot qualify for traditional bank or SBA loans due to these factors and more. You may anticipate needing financing to cover project expenses, bond premiums, labor, and materials costs before you receive your first payment.
Alternative lenders and consultants can provide you with access to these funds in a timely fashion and, in turn, make you more profitable. These lenders allow contractors to take on more risk, bid competitively on bigger projects, and grow their business. Ultimately, they partner with you in the short term, intermediate, and long term life of your business.
One of the most favorable financing products for the industry is a business line of credit. A line of credit is “security” for your business, which you can draw from whenever you need access to immediate funds. As a contractor, it is likely that you will need cash flow before a project starts to secure equipment, buy insurance, cover payroll, and many other critical business expenses that come along the way. A business line of credit allows a contractor to take on more projects with confidence, knowing they have the resources to fully execute.
If your business can check off the following, you have a very high chance of being approved for a business line of credit:
- 1 year+ in business
- Monthly deposits of $40,000+
- Minimum FICO score of 650+
- Last 6 months of business bank statements showing consistency in deposits and healthy ending bank balances (Lenders typically like to see over $5,000 for ending month balances)
For an underwriting decision within 24–48 hours, you can apply HERE: https://bit.ly/Businesslineofcredit
With the current state of an uncertain economy, it’s best to get funds secured allowing you to move at your own pace heading forward.