Ways to Fund Your Construction Business
Need money for your construction business? Consider these funding resources that you may not have considered:
Small Business Administration (SBA) Loans
Don’t forget about the SBA as a resource for small business loans. The interest rates are often very competitive. You can learn more and apply online.
Commercial loans from banks and credit unions are typically for payment terms between one and 20 years. These are usually paid monthly, including interest and loan fees that are outlined in your loan documents.
Do you have a line of credit with a lender? This might be another way to gain the funds you need, fast. Plus, it may have lower interest rates than other options as long as you make your payments on time.
Alternative lending usually refers to money from a source that is not a bank. These might be shorter in terms and often have higher interest rates. This could include payday loans or short-term emergency loans that come due in 30 days to six months.
Revenue-based financing is an arrangement between you and the lender that you are selling them a share of our future profits. This is not so much a loan but an investment that is paid upfront for future revenues. The terms vary but typically range from one to three years.
Peer-to-peer lending offers an investment opportunity to citizens while getting you the money needed for your enterprise. This is a less rigid process that may be easier to navigate than a conventional bank loan.
If what you need money for is equipment, consider financing the items instead. These usually are five or more years in duration, with varying interest rates that could be as high as 40% so read the fine print! The advantage is that you will get the gear you need fast to keep your business moving forward.
Is there anything that you can’t finance on a credit card? Depending on what you need the funds for, a credit card is another option available to businesses.
Need funding sources for your business? Talk to the money professionals at TCF Capital– you should always consult with a financial advisor when you are unsure which option is best for your business. Call or visit to learn more today.