- August 14, 2013
- Posted by: admin
- Category: Blog
Whichever industry your business is in, it can always use additional cash flow. Whether your company needs additional supplies, more manpower, better marketing campaigns or even an increase in salary for the loyal employees, the influx of cash will give your operations a boost. However, if you are in the construction business, you might find such additional cash difficult to obtain. Read on to find out why this is so, and how finance companies can help you out.
Why are Constructions Loans Difficult to Obtain in the First Place?
First, let us take a look at the reasons why construction loans or cash advances for construction companies are difficult to obtain in the first place. First of all, the success of such businesses depends on many factors, including the local or even national economy. If the economy is doing well, then the construction business will boom, and there will be many contracts obtained by business owners. On the other hand, if there are problems with the economy â€“ which recently occurred during the financial meltdown a few years ago â€“ everything will be affected. Those in the construction business are the ones who will carry the brunt of the hurt, because everything stops if they are unable to obtain contracts.
Aside from the fact that the economy is a primary factor in the success of construction businesses, thereâ€™s also the volatility of the business itself. Since most construction company owners hire on a per-project basis, there really is no stability to the nature of the work. This makes lending companies quite hesitant to give them the additional financial assistance that they need.
How Do I Apply for Construction Loans?
Now, if you are in the construction business and are serving as the owner, CEO or manager, how are you supposed to apply for a construction loan or a cash advance for your construction company if you do need the help? Here are a few tips to remember:
â€¢ On your loan application, specify the purpose of the loan.
Whatâ€™s the purpose of your loan application? Is there an existing project that you need additional capital to finish? Do you need the funds to supplement payroll? Do you need additional equipment or tools for the business? Or do you need it to increase your surety bonds? By specifying the reason for the loan application, the person who evaluates and approves the loan will understand what you will be using the funds for.
â€¢ Look for lending companies which specialize in giving assistance to those in the construction business.
Next, make sure to apply for a loan with a company that specializes in offering financial assistance to those in the construction business. Globelend Capital is such a business, since they offer a program where construction companies can get working capital loans against their revenue. Even if you have bad credit, the company will accept tax liens and judgements, so you can get the financial assistance needed to take your business to the next level.