What is Commercial Construction Financing?

Commercial construction contractors and subcontractors need cash flow before a project starts to secure equipment, buy insurance, secure payroll, and many other critical business expenses. Commercial Construction Financing is one option for contractors and subcontractors to borrow the funds they need.

You can learn more about commercial construction financing and Mobilization Funding by reading About Construction Loans.

What Do I Need to Consider When Seeking a Commercial Construction Loan?

Before you sign on the dotted line with a commercial construction financing partner, you should know exactly how much money you need, what it’s for, how the repayment schedule aligns (or doesn’t) with your expected receivable schedule, and whether or not you can build the cost of the loan into the total cost of the project.

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When Should You Secure Funding for Your Commercial Construction Project?

Many commercial construction contractors wait until after a project has started to seek funding, but this approach can have serious consequences. The best strategy is to consider the cost and method of any needed capital during the bidding process of a job.

Why Should Commercial Construction Companies Consider Alternatives to Traditional Lending? 

Despite sizable growth in the industry, construction is still considered high-risk for many lenders. Many contractors simply cannot qualify for traditional bank or SBA loans. Due to the nature of the industry, you may need financing to cover project expenses, bond premiums, labor and materials costs before you receive your first payment.

Alternative lenders provide commercial construction contractors the financing they need when they need it. These lenders allow companies to take on more risk, bid competitively on bigger projects, and grow their business.

What Do I Need To Apply For Commercial Construction Financing?

Application processes vary between lenders. Some have simple, single-page applications (like us). Others have extensive paperwork to fill out before your loan will be considered. Once the application is complete, you’ll also need to provide supporting documentation such as company bank statements, tax returns, P&Ls, balance sheets, contractor licenses, and personal ID verification.

How Do I Choose the Right Commercial Construction Financing for My Business?

Contractors have to cover much of the cost of a job before the work begins, and there are several commercial construction financing options to choose from: a traditional bank loan, daily debit loans, a factoring company, or Mobilization Funding. Finding the right funding partner can help you cover those costs, increase your profits and bid on larger projects.

See How Our Construction Loan Process Works.