Most construction projects — and virtually all large-scale initiatives — are underwritten by more than one financial source. This is because even the most robust and well-developed financial projections are subject to variances and deviations due to a range of internal factors (e.g. staffing) and external factors (e.g. weather).
What’s more, the bulk of project expenditures typically occur during early phases of construction, which means time is of the essence to fill any funding gaps. Otherwise, schedules, budget, and even the project scope can be at-risk — which is a recipe for failed projects and irate sponsors and stakeholders. And in extreme cases, delays and overruns can do more than damage a construction company’s reputation and future potential earnings: it can threaten the company’s very survival.
Yet with this in mind, most banks make both initial and additional borrowing excessively difficult — and sometimes impossible — for small and mid-sized construction firms. For example, the application process is time consuming and requires multiple documents (e.g. financial statements, building plans, contracts, list of trades, etc.). Even if an application makes its way through the process — and construction companies can withstand the bureaucratic delay — there’s no guarantee that the funding will be approved.
Fortunately, banks are by no means the only — or in many scenarios, the optimal or least risky — construction financing option. At National Business Capital, we offer a range of construction financing solutions for companies across the country, including small and mid-sized firms that work just as hard (if not harder!) than enterprise-level organizations, and often need additional cash to ensure their plan, schedule, budget and scope stays on-track. Here are just some of the solutions we offer:
Working Capital Loans
Our working capital loans are available for both short-term and long-term requirements, and in amounts below $100,000 to over $1 million. The construction financing is paid back in fixed — and therefore predictable — payments, and unlike banks, our underwriting criteria does not rely on personal or business credit scores.
Commercial Mortgage Financing
Our commercial mortgage financing allows construction companies to plan and execute their development and growth plans in a manageable and affordable manner.
Business Lines of Credit
Our business lines of credit provide construction companies with “at-the-ready” funding to cover contingencies, exploit opportunities, and rapidly resolve short-term bottlenecks in their cash flow.
Our equipment financing enables construction companies to purchase the assets they need to increase capacity — and therefore onboard more customers and drive profits. We offer flexible and customized solutions that map to each company’s specific cash flow, tax management and accounting needs.
To learn more about how our construction financing solutions can help be part of your company’s success story, contact us today or fill out our two-minute application here: