Despite an increase in housing starts for 2016, traditional financing for these construction projects may be difficult to obtain.
Banks have tightened their lending practices and have also extended the time it takes to receive project financing, even for well-established contractors and construction firms. Criteria for builder financing which had once been very general, i.e. for any commercial or residential project, has changed over the last decade to very specific financing expressly for pre-sold housing and offices, to the exclusion of speculative builds.
Construction Industry Impact on US Economy
The construction industry’s full impact on the U.S. economy is difficult to measure. The Associated Builders and Contractors, Inc. states that construction’s contribution to the economy has not yet returned to the robust metrics the industry achieved prior to the 2008 economic downturn. However, projections only cover actual construction project activity.
Rising Demand for Heavy Equipment & Building Supplies
They do not consider the impact that these starts have on the demand for building materials, such as sand and gravel for cement, wallboard, windows, heavy equipment, financial services, sales and leasing, even materials transport and personnel.
That puts the value of the industry as a whole into better perspective. The construction industry supports many other businesses and industries, which makes it pivotal to the economy and considerably more important.
Reliable Builder Financing Sources
Banks don’t look at growth projections in making their builder financing decisions. Alternative financing companies, such as National Business Capital, make their financing decisions based on a broader market segment that includes the increased demand for building materials, services, and personnel.
This alternative approach is the opposite of bank lending criteria, which disqualifies applicants if they don’t have any real estate collateral or a less than perfect credit history.
National can assist those with bad credit or no collateral to obtain financing and does not charge any upfront fees. Our application takes an average of 60 seconds to complete and far less documentation is required, making it a simpler process to provide applicants with an approval in as little as 24 hours or less.
The nation’s economy is supported by business and business depends on establishing solid financing. Therefore, it is a sound business practice to establish a business relationship with a trusted financing company.
Get Fast Alternative Construction Financing
Many businesses in nearly every industry have turned to National, realizing that to establish financial peace of mind is vital to the success of any enterprise.
To learn more about how alternative construction financing with National Business Capital will benefit your company, please give us a call at (877) 482-3008 for a confidential business review.