Small business administration (SBA) backed loans
The small business administration does not normally loan money to construction companies. Instead, they give partial assurance to approved creditors. SBA-backed loans offer reasonable interest rates as well as business-friendly repayment terms. Your business will be required to provide personal collateral, as it is the norm for all secured bank loans. Unfortunately, approval rates of SBA-backed loans are low as a result of relatively strict underwriting requirements.
Business credit card
A business card is a personal credit card that contains the business name on it. It is a useful source of short-term financing for the company’s supplies and materials. However, the financing cost of this option can be high, and the usage is usually restricted by the owner’s credit limit.
Alternative business loans and revenue-based funding are usually available. The best part about alternative financing is that it provides funds quickly with minimal paperwork. The cost of alternative financing is usually higher than other options. However, the options are better than conventional bank loans, which are relatively inaccessible.
It is not a loan. Revenue–based financing is a financing agreement where a construction firm agrees to sell a portion of its future revenue at a fixed discount. The option can provide $50,000 to $250,000 in funding in exchange for a portion of the company’s future business revenue.
Your construction company can choose any of the above financing options to get working capital. Accessing construction business loans should no longer be complicated or time-consuming. The financing options provide peace of mind knowing that you have access to the funds you require.
Scheduled maintenance and servicing is one thing, but there are many occasions when unexpected eventualities crop up relating to the key tools of business – the trucks. A trucking company must always have a source of funds or credit lines to remain afloat.
As part of modernizing trucking fleets, there is an anti-collision sensor system that mitigates head-on collisions that bring about the unwanted loss of property and lives.
This technology also comes as an incentive to the drivers as a safety measure in addition to good pay and guaranteeing them loans for truckers.
Money just when you need it
Part of the power of money is to have it when you need it. An institution offering trucking business loans serves a meaningful purpose if they cut the red tape and avail the required funds in good time or just when they are required.
Now that you the importance of construction finance for builders, the next step is to call our office and speak with a loan consultant. In some cases, offers can be provided with basic information and with a soft credit pull.