The construction industry is a generally unfavored sector within the banking industry. Banks don’t like the progress billing, the work-in-progress schedules, and the percentage of completion accounting convention. They think there is too much risk and do not want to invest the time and money to understand it.
The result is a capital desert for businesses within the construction industry. Many firms’ growth is restricted due to a lack of capital, which is the main limiting factor to business expansion after labor.
We have a number of financing solutions for construction-related companies.
Certain lenders will provide financing to cover cash flow gaps over the life of specific projects. They analyze the cash flow ins and outs of a project and provide funding to cover the shortfalls.
Lenders will also provide financing for construction-related receivables. This includes funding based on progress billings, pay-when-paid, and milestone billings.
Finally, lenders will provide General Contractors with an Early Pay program for their subcontractors.
Financing for construction equipment such as Yellow Iron, Cranes, Excavators, Scaffolding, etc., is also available.
If your construction business is being held back from accepting additional profitable jobs due to funding constraints, contact me at [email protected] to review your situation and explore available funding options.