Why Construction Companies Choose National Business Capital
Construction companies often need financing on a shorter timeline than traditional lenders can offer. Here’s how National compares with a typical lender when you need capital for the next job.
| What construction companies need | National Business Capital | Traditional lenders |
|---|---|---|
| A fast funding decision | Advisors review your situation and help you find an option that fits your timeline. | Longer review processes can make it harder to secure financing before a project starts. |
| Financing that fits the job | Your advisor considers how the project generates revenue before recommending a funding structure. | Standard lending criteria may not account for the timing of construction cash flow. |
| Access to an experienced advisor | You work with an advisor throughout the funding process. | You may work with different people at different points in the process |
How it works
How National Structures Capital for Construction Companies
National starts by understanding why you need capital. From there, your advisor helps determine which funding structure makes sense for your situation.
- 1
Define What the Capital Needs to Accomplish
Your advisor reviews your current projects and upcoming work. That helps determine how much capital you need.
- 2
Find the Right Type of Financing
The right option depends on what you plan to use the money for. Your advisor explains which structure fits your situation and what you give up with each option.
- 3
Make Sure the Financing Fits your Cash Flow
National looks at when your jobs generate cash and when you need to make payments. If a financing option could put too much pressure on your cash flow, your advisor tells you before you sign.
- 4
Get the Funds and Put Them to Work
Once approved, eligible accounts can receive funding in hours. Most applications are completed within three business days.
Construction companies often turn to National when they need capital for a specific project or business expense. These are some of the situations advisors see often:
Cash goes out weeks before a draw comes in. A Line of Credit bridges that gap while the invoice moves through the approval process.
When a machine fails mid-job, a project can grind to a halt. Equipment Financing or a Term Loan helps you replace it quickly without tying up cash needed elsewhere.
A new contract can require significant cash before the first progress payment arrives. Cash Flow Financing gives you the funds to start the job without draining reserves.
Slow periods can put pressure on payroll. A Line of Credit helps cover fixed costs until new work picks up.
Why Construction Companies Need a Different Funding Approach
Construction cash flow does not always fit a standard lending model:
National takes a closer look at how your business is performing today. Your advisor reviews your situation and recommends a funding option based on your current needs.
| How construction projects work | Traditional lending view | What National considers |
|---|---|---|
| Revenue can shift from one quarter to the next | Last year’s tax return may not show the current picture | Current revenue and expected draws |
| A company can have millions in contracted backlog while current revenue looks light | The balance sheet may not show upcoming work | Contracted backlog and pipeline |
| Project costs can come before customer payments | Standard underwriting may not account for that timing | When you need the capital and when you expect payment |
Key Things To Know Before You Apply
Before you apply, here are a few things to keep in mind:
Established Revenue
National works with established businesses. Construction companies seeking $250K in funding typically need a track record of revenue from completed projects. Your advisor reviews your financials to see whether the business qualifies for the financing you need.
Most Products Do Not Require Collateral
You can keep your equipment and property available for other business needs. Your advisor explains which financing options fit your situation.
Keep Your Financial Records up to Date
If you have a deadline to start a project, tell your advisor early in the process. Current financial records give your advisor what they need to review your application without delays.
National is a Direct Lender
National lends from its own balance sheet and also works with other capital providers when another option makes more sense.
Frequently Asked Questions
The right structure depends on how you plan to use the money and how your jobs pay. National offers several structures because no single product fits every construction company.
Most National funding products require no collateral. You can keep your equipment and property available for bonding and project needs. Your advisor confirms which options fit your situation.
National reviews your contracted revenue and project pipeline before recommending a funding structure. Most products have no minimum FICO requirement.
National has funded more than $3B and works with construction companies seeking capital for growth. Talk to a National Business Capital advisor to find a structure built around how your business operates.