Category: Construction Loans

Construction Contract Financing for Subcontractors

Construction contract financing for subcontractors solves one of the biggest challenges subcontractors face when they are awarded a new project—financing the upfront costs associated with the work. Materials, equipment, bonding premiums, supplies, and of course labor are all expense types typically incurred before you, the subcontractor, ever invoices your general contractor, let alone sees a… Read more »

Cash Flow Tips for Small Businesses

Cash flow is the lifeblood of every business, and it is particularly critical for small and mid-size businesses, as these companies often have less free cash flow to help them cover unexpected costs, delays, work shortages, or their growth. Before we talk about good cash flow management and share a few tips to improve cash… Read more »

Merchant Cash Advance Versus a Mobilization Loan?

We talk about merchant cash advances a lot. Our clients do too, because so many of them have been burned by these not-quite-a-loan financial products. Taking out a merchant cash advance when your cash flow is pinched can be the “help” that ultimately bankrupts your business. That’s not an exaggeration; there are plenty of MCA… Read more »

What is Construction Financing?

Construction funding for contractors helps cover the costs of payroll, materials, insurance and more before the project begins. Many subcontractors, and GCs who self-perform, are caught in a cycle of robbing the cash from one job to get started on the next. Why? It is NOT because most contractors are bad with money. They are… Read more »

Introducing Your Financial Partner to the General Contractor or Owner

In construction finance, many lenders (ourselves included) utilize some type of risk mitigation in order to ensure that the project goes well and that the money lent is protected and will be repaid. Construction, in general, has risks that all parties in the construction process must account for in order to do their jobs properly… Read more »

Types of Construction Financing and How They Impact Your Ability to Grow

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Our CEO Scott Peper recently joined the good folks at Levelset for a webinar on construction financing and how your funding choice could impact your ability to get paid. If you missed the webinar, you can catch a recording here. We have already listed out the many types of financing available to contractors — the… Read more »

Is There Really Good Debt and Bad Debt?

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Is there such a thing as “good debt?” Yes, there is. What is the difference between good debt and bad debt? Good debt helps you grow. Bad debt weighs you down. For example, meet Kelly, owner of Kelly’s Creations. Kelly has owned and operated the small manufacturing company for 10 years, ever since her dad… Read more »

Borrowing Capital is a Smart Way to Grow Your Business

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“You’re either growing or you’re dying” is a popular business idiom. For some companies to grow, they rely mainly on customer referrals and organic market growth. For everyone else, you either need to generate more leads, capitalize on bigger opportunities, or some mixture of both. Here’s another business quote, “You have to spend money to… Read more »

Is Invoice Factoring the Right Option for Your Subcontracting Business

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Most subcontractors need capital to cover the costs of a new project before the first invoices get paid. The high costs of mobilizing on a job — plus the reality of waiting 30 – 60 days or more for your first payment, all the while meeting weekly payroll and regular business expenses — would be… Read more »

The Guide to Merchant Cash Advance Loans (MCAs) 

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Merchant Cash Advances, or MCAs, are a funding option for all types of businesses who need quick cash. But as a “quick fix” solution, it can come with a host of challenges that may lead to huge problems for small businesses, especially for those in the commercial construction industry. That’s right. MCAs are bad for… Read more »