Category: Construction Loans

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 »

What Do I Need To Apply For A Commercial Construction Loan?

meeting over a clipboard and laptop

Securing a commercial construction loan can be an arduous process if you aren’t prepared for it. There are multiple options for businesses looking for commercial construction financing, including contract financing, factoring, merchant cash advance/daily debit and SBA loans, but there is no standard set of requirements for what you need in order to apply.

One Huge Mistake Contractors Can’t Afford To Make

snow plow cleaning a road

A common commercial construction billing mistake companies tend to make is to delay submitting an invoice or pay application for the work completed during slow months. Construction companies, in most situations, have work schedules that ebb and flow as their jobs progress. Busy and slow months are inevitable. Federal holidays and poor weather conditions often… Read more »

How a Financial Capability Letter Strengthens Your Government Contracting Bid

corroding metal

There are many factors behind landing a winning bid. For upper-level commercial construction projects — especially for those lucrative government contracts — you have to prove that your company can complete the work for a competitive price and that you have the means to carry it through start to finish. A Financial Capability Letter can… Read more »