With the cost of parts and labor on the rise and access to qualified workers at a premium, contractor business loans are an essential part of running a successful contracting company. The funds can cover project-related expenses and day-to-day operations. The infusion of cash may also be used to service or buy new equipment, purchase materials and make employee payroll.
Just getting your business off the ground? Been around for decades? Either way, you will likely need tailored small business loans that keep your contractor or construction business operating efficiently while you acquire new business and wait for invoice payments.
Withholding invoices until a project is completed is a great service standard, but it can create cashflow issues. When you need to make unforeseen payments, cover payroll, or service broken equipment, you need to have cash on hand. Reduced cash flow could force the use of substandard parts and components. Small business loans for contractors can help improve liquidity and ensure operations keep running smoothly, on schedule, and up to the industry’s exacting standards.
Contractors thrive on repeat business, and satisfied customers stick to the professionals they trust. But referrals may not be enough for contractors to broaden their base of new customers. The internet, social media, TV, and print ads serve as highly visible mediums to increase company awareness. However, the marketing spend on these advertising streams will require capital from the business. Loans for independent contractors can provide the marketing dollars that help roofers, HVAC professionals, electricians, and plumbers gain a foothold and standout in a crowded industry.
A contracting project often requires large amounts of raw materials and heavy machinery, which usually come with a hefty price tag. On top of being initially expensive, a job may require more materials than budgeted for, and equipment can break down. Having the right tools for a job is essential to your business’s success. Having access to contractor business loans allows you to get all the materials and equipment you need, quickly and easily, while protecting your cash flow.
Working in a seasonal industry requires the ability to compensate for seasonal cash flow dips and slow periods between payments. If your business’s revenue stream ebbs and flows depending on the season, having extra funds during slow periods can give you a sense of financial security. The supplementary cash can be used to cover expenses during the seasonal lulls and take advantage of sudden opportunities.
For most contractors, missing payroll is not an option. You can’t afford to disappoint employees, so it’s imperative you find the funds to issue employee paychecks to keep your staff motivated. Business financing for contractors can be used to fund employees’ salaries and provide them with competitive benefits.
Builders are trying to shore up their contractor supply, but demand far exceeds the supply of qualified laborers, notes the National Association of Home Builders. Hiring new employees can be time-consuming and expensive. But, it’s imperative that you have the right people and the right amount of people for the job. Working capital can be used to bring on more employees and extensively train them. The funding can also assist with workforce development initiatives to improve retention and attract professionals who may be considering a different contracting sub-sector.
Contractors are called upon to address the needs of families and businesses through expert diagnosis and quick resolutions. To see these jobs through and keep customers satisfied, contractor businesses need working capital funding to pays for equipment, services and labor. QuickBridge provides business loans for contractors so they can purchase the equipment and pay for labor when duty calls.
Regardless of how you choose to use your contracting business loan, you’ll be able to focus on what you do best – running a successful business. Instead of spending weeks applying through a traditional lender, consider QuickBridge, and see how easy and fast it is to apply for a loan with the leader in small business alternative lending.