No matter what your business type is, additional working capital is something every business can benefit from. Without sufficient cash, businesses are unable to cover payroll, purchase new equipment and vehicles and seize opportunities. While competitors are starting new projects, you’ll be unable to keep up or expand.
For construction companies, finding funding is no easy task. Banks are typically hesitant to work with contractors, whether it’s a large project or a simple, single house. In fact, banks reject upwards of 60 percent of small business loans. As a result, painting contractors, electricians, plumbing contractors and general contractors often turn to alternative lenders like First American Merchant. FAM specializes in offering many business types and industries other lenders won’t work the cash and support they need quickly.
The decline rates for construction companies are higher than other industries, due to the nature of the industry and the risks involved. Alternative financing options provide cash solutions for contractors, developers and even freelance subcontractors assisting larger builders. A high-risk business loan with a lender like FAM, for example, is one of the most efficient ways to fund a new project.
With traditional lenders, your credit score, past bankruptcy or tax lien might be an issue. In addition, traditional loans are known for their strict documentation requirements, long application process and outsourced customer service. Your company could wait weeks (or even months) to hear back, only to discover it’s been declined. Still short of much needed cash, your business is back to square one.
With FAM’s high-risk business loan, on the other hand, none of those issues are a problem. Unlike working with a traditional lender, the application process is fast and simple. The requirements are straightforward and documentation is minimal. Since decisions are based on income, your business can receive funds in as little as 24 hours.
If your construction company is struggling to secure the funding it needs, consider the many alternative financing options available. These solutions will provide much need flexibility, while also minimizing the burden on your business’ cash-flow. Don’t wait until your business finds itself in a dangerous capital situation. Research the many options available to you, and then choose the solution that best fits your current needs with your long-term financial health in mind.