Category: Construction Loans

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 »

What is Commercial Construction Contract Financing?

Construction site with heavy equipment

Commercial construction contract financing is a way for contractors and subcontractors to borrow dollars they need for the early stages of a particular job by using the value of their contract as collateral for the loan. Mobilization Funding, sometimes referred to as Mobilization Financing, is a commercial construction contract financing option for subcontractors who are… Read more »

When is it Time to Get Funding for Your Construction Project?

Few commercial contractors have the luxury of paying the full up-front cost of a project without help along the way. But often, they wait too long to seek that additional funding, which can put unneeded stress on the project itself or even the business overall.

Seeking a Commercial Construction Loan? Start Here.

Construction projects are capital-intensive and, unlike the way in which many goods and services in the United States are bought or sold, the company undertaking the work delivers on the product before billing and months before receiving payment for its services. Due to the nature of the business model, as well as to the Great… Read more »