Need help with Construction Finance?
Do you run a construction business and are facing cash flow issues? Maybe you’re struggling to find the working capital to fulfil a contract? Or you’re wondering how you’re going to pay bills or wages? If you answered yes to any of the above, you could benefit from a construction finance loan.
What is Construction Finance?
Access to funding is one of the major financial challenges construction companies in the UK have to deal with. Construction involves financing expensive plant machinery, hefty upfront costs, and lengthy construction contracts. Construction finance helps you handle this with ease by providing you with the funding you need.
When it comes to financing a new construction project or expanding your business, you would want to secure a construction finance loan in a timely manner. High-street banks offer construction loans, but it can typically take weeks to secure a meeting, only to have your loan application rejected.
Fortunately, there’s an emerging body of alternative lenders in the market who are able to offer small business construction loans within days of application. Moreover, you don’t necessarily need a clean credit history to qualify for a loan. This makes these lenders a better option for construction business line of credit.
The Advantages of Construction Finance Loans
There are many benefits to construction finance loans, including the following:
Improved cash flow – Construction loans release the money trapped in unpaid invoices or uncertified payment applications. You can spend that money on paying workers or purchasing materials in a bid to complete your contracts.
Access to experts – You’ll have access to industry specialists who understand how your business works and can help find the financing you need to enhance your cash flow. These experts can also help review your contracts to ensure there are no clauses that may get you in trouble in the future.
Asset finance – Construction finance loans can help you purchase equipment, saving you the substantial upfront costs involve with acquiring equipment. The costs are generally spread over extended periods of time, enhancing your company’s liquidity.
Help with credit control – You can delegate the task of pursuing unpaid accounts receivable to a team of experts. You may also opt for bad-debt protection to safeguard your cash flow should your clients renege on their obligations.
What Can Construction Loans Be Used For?
You can use construction loans in many ways, including the following:
Purchasing materials and equipment – A construction line of credit can enable you to buy equipment and material that will be used in your construction projects.
Expanding your business – If you own a small construction business with a single location and you want to set up new offices in other locations, then you can use construction loans to expand your business.
Hiring and training workers – You can use the funding from construction finance loans to recruit new personnel for construction purposes. You can also fund training costs for the personnel with your construction loan.
No matter why you need it, if you’re a construction company struggling with cash-flow problems, a loan might be your best option.