No matter what the size of your construction business is, you will in all likelihood eventually need to expand your business by applying for one or two construction loans Long Island in order to accommodate more clients and job sites. This is why it’s important for you as a contractor to access capital. Moreover, the speed at which you are able to acquire funding, and the growth equity access are also one of the most important considerations, if you want your business to flourish.
With this in mind, here are three loan programs you can take advantage of, which will help you take your construction business to the next level.
Invoice financing is a popular choice of financing for contractors. Constructions companies will be able to receive the amount of their invoices in advance by selling receivable invoices. Much like a business line of credit, you can take out cash whenever you need as long as you submit your customer’s invoices as collateral. The best part about invoice financing is, you only pay interest on the balance of money you borrow.
This type of loan is highly recommended for large construction companies who receive large amounts of customer invoices on a regular basis. For instance, contractors often bill their clients monthly or once every two months, so, whenever you need a fresh injection of capital in order to complete or begin a new project, you can use invoice financing as a vehicle for generating needed funds in advance while you wait for your customers to remit payment to you.
Equipment financing can come in handy for contractors whenever they need to replace or acquire new equipment for their business. As an assurance, the equipment purchased serves as the collateral for your loan. This type of financing is suitable for large businesses that cater to a wide variety of big-time projects such as hospitals or schools. The construction company might need to add a bulldozer or some other piece of heavy equipment, and an ideal way to finance this acquisition is through equipment financing.
Business Line of Credit
Another type of loan you can easily apply for is the Business Line of Credit (LOC). It works in a similar fashion as a credit card, whereby you can withdraw cash advances as often as needed in order to supply the needs of your growing construction business. This is an excellent option for contractors who need immediate financing so you can cover the expenses for your new project. The benefit of LOC is the borrower only pays the interest for the credit that he/she has used.
The business LOC is a popular loan program for numerous contractors because of the availability of funds whenever they’re in need. This is a decisive factor that speeds up the acquisition of financing for new projects because your business LOC can be easily accessed, removing the need for you to apply for additional funding.
Construction Loans Long Island
If you’re not sure which loans are right for you when you are about to expand your construction business, the finance experts at SMB Compass can help you decide after sharing their exclusive inside financing details with you.
If you would like to discover all of the information as it relates to your business needs, give us a call today at (888) 853-8922 or email us at email@example.com and we’ll be happy to answer your questions and concerns with absolutely no obligation of your part.