Category: Construction Loans

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

Blog Header Image - Borrowing Capital

“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

Accountant_Invoice Factoring_Mobilization Funding

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) 

Architect Contractors Reviewing BluePrints

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 »

Contract Financing for Construction Subcontractors

subcontractor financing

When it comes to managing business cash flow, construction subcontractors face a steep uphill battle as they take on new projects. With 45-60 days or more between starting the job and receiving their first payment, the subcontractor needs enough cash on hand to cover payroll, bond premiums, equipment leases, vendor or supplier payments, and other… Read more »

3 Bidding Mistakes that are Killing Your Profit Margin

A calculator and bidding sheet

Project bidding is a major challenge for commercial construction subcontractors in the United States. Estimating a bid involves a lot of hard work, research, and thoughtful planning. In its most basic form, a bid is the sum of estimated project costs, overhead expenses, and net profit margin. Click here to read our guide to calculating… Read more »

Liens 101: What Subcontractors Need to Know

mechanic lien

It may not seem like it, but when your subcontracting business performs work on a job prior to being paid, you are essentially extending credit to general contractors and property owners. Lien rights in the United States are your security and protect your commercial construction business so that you can get paid for your work…. Read more »