Contractor Business Loans

Contractor Business Loans

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Contractors and construction companies usually do not receive payment for their hard work until project completion. Most supplies needed to complete the job will have to be purchased beforehand by the contractor or business owners. In this line of work, it often takes money to make money.

The gap between projects can prove difficult for contractors and construction companies. There will likely be moments when your contractor business will need to borrow funds to achieve project goals and manage regular day-to-day expenses. Contractors will often utilize financing options to bridge the gap to stay on top of business endeavors and appease clients.

There are various loan options available to help fund and ultimately expand business ventures within this line of work. Utilizing a contractor business loan provides small and growing businesses within the construction industry with funds to manage capital flow, purchase necessary equipment, pay employees, manage day-to-day expenses, etc. First Union Lending has provided funds to thousands of businesses run by passionate owners who strive to deliver high-quality results to their clients. We are ready to help contractor companies attain the necessary funds to succeed.

What is a Contractor Business Loan?

A contractor business loan or a construction company business loan is an industry-specific loan that provides funds specifically to construction-related businesses that need financial assistance. It provides funds to manage capital flow, cover day-to-day expenses, purchase supplies, upgrade equipment, pay employees, etc.

Many of these contractors and businesses often do not receive payments for their work until completion. That leaves many contractors waiting for an extended period for their paychecks- unless than can receive extra funds to cover these expenses. They also need funds to purchase the supplies to complete the job, including buying building materials and equipment, paying insurance costs, etc.

Various loan options are available to help small, and growing construction-related companies thrive! First Union Lending is here to help! Contractor and construction company owners will utilize these funds to cover payroll and supplies and streamline their business.

Types of Contractor Business Loans

Types of Contractor Business Loans:

Several business loans are available to help qualify small and growing consultation businesses. These include:

SBA Loans: Partly guaranteed by the U.S. Small Business Administration, traditional and non-traditional lenders offer SBA loans. The program provides highly flexible rates and terms ideal for small businesses. Several variations of SBA loans help well-established hotels and motels looking to expand.

Businesses must meet the following requirements to be eligible:

  • Operate for profit
  • Be considered a small business, as defined by the SBA
  • Be engaged in, propose to do business in, the United States or its possessions
  • Used alternative financial resources, including personal assets, before seeking financial assistance
  • Use the funds for a sound business purpose
  • Not be delinquent on any existing debt obligations to the U.S. Government.

Listed below are types of SBA loans that can benefit a construction-related business:

SBA 7(a) loans: 7(a) loans are standard within theSBA family. With access to up to $5 million in working capital for 25 years, these loans are typically adequate for most industries. Interest rates are between 7 and 8%, depending on trade and the nature of your business. Most opt-ins for an SBA loan will fall under this category.

SBA 504/CDC loans:504 loans are particular. It provides long-term, fixed-rate financing through Certified Development Companies (CDCs), SBA's community-based partners who regulate nonprofits and promote economic development within their communities. If your business needs to purchase commercial real estate or perhaps a large piece of equipment, this may be the ideal loan program. Borrowers may need to provide 20% of the loan's total value, the SBA provides 40%, and the lender will give the rest. The cap on this type of loan is generally $5 million.

Businesses must meet the following requirements to be eligible:

  • Have a tangible net worth of less than $15 million
  • Have an average net income of less than $5 million after federal income taxes for two years preceding your application

Business Lines of Credit: Banks, financial institutions, and other licensed consumer lenders extend credit to creditworthy customers to address fluctuating cash flow needs of the customer. The maximum amount of funds a customer can draw from a line of credit is typically called the credit limit or overdraft limit.

At a minimum, lenders will require your business to be operational for at least six months and able to earn $25,000 in revenue. A minimum credit score of 500 or higher may be required to qualify, depending on the lender. By partnering with non-traditional lenders, companies can obtain their business line of credit within days.

Short-term Loans: Short-term business loans can be highly beneficial during a growth period, fluctuating cash flow times, or a need for seasonal purchasing.

Long-term business loans typically include more significant funding amounts and lower interest rates and payments. If you know that taking the loan will put you in a position to pay back the loan quickly, a short-term loan may be the solution.

The application process requires proof of ownership of your business, financial statements, tax information, P&L statements, and a copy of your driver's license. Lenders will check your business and personal credit as well. Once approved, companies can obtain their funds within 1-2 business days.

Equipment Financing: Equipment loans provide the funds for companies to buy business-related equipment.

Equipment can include tools, building materials, protective gear, wood finishers, bagged aggregates, etc. Most lenders will require three years of tax returns for the business, the purchase agreement of the equipment, personal financial statements, and identification from each owner.

Inventory financing: Inventory financing allows you to replenish your stock without utilizing additional Collateral. This type of business funding works well for retail shops that need to place large inventory purchases to keep their business streamlined with the current trends on the market.

Most lenders will require businesses to be up and running for six months to a year to qualify.

How to Apply for Contractor Business Loans: Requirements and Getting Started

How to Apply for Contractor Business Loans: Requirements and Getting Started

If your well-established consultation company has reached a point where funds are required to fund new business initiatives, acquiring a small business loan may be the best option.

First Union Lending is here to help you push your business to new horizons.

Submit your business information below to determine if you qualify for any available small business loans or financing options. Our Funding Specialists will analyze your qualifications and will reach out to walk you through our application process.

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While each of the available loans has varying qualifications, we will typically ask for the following general information:

  • Business Operation History
  • Business Revenue Statements
  • Personal & Business Credit Scores
  • Possible Collateral if needed

Traditional lenders and banks often involve collaterals and strict repayment schedules - creating stress for borrowers in need of cash for business growth. Online lenders like First Union Lending provide businesses with the funds required to succeed.

If you have any questions in regards to consultation business loans, feel free to give us a call: 863-825-5626

Advantages of Contractor Business Loans

Not only can these funding options provide businesses with working capital, but they can also offer other perks that can benefit your business in the long term. Most business loans offer competitive interest rates, predictable monthly payments, and credit-building opportunities. Build your business credit while utilizing the working capital to fuel your client projects and business endeavors.

These loans allow successful business owners to invest and accelerate their growth. Keep your business moving forward by utilizing a business loan made to help you.

Choose First Union Lending As Your Premier Lender

At First Union Lending, we believe that small and medium-sized businesses deserve the right to access the capital they need to succeed.

Our goal is to build long-term, lasting relationships by providing business owners with what they need when they need it. We pride ourselves on being educated, knowledgeable, and caring about conducting business. We have acquired much of the same licensing traditional banks require to cement our fiduciary responsibility to our clients and work culture.

We are here to consult, help you save, and guide your business to success.

All states we service for Contractor Business Loans:

Alabama

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Colorado

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Hawaii

Idaho

Illinois

Indiana

Iowa

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Kentucky

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Maine

Maryland

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Michigan

Minnesota

Mississippi

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Ohio

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Rhode Island

South Carolina

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Tennessee

Texas

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Vermont

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Washington

West Virginia

Wisconsin

Wyoming

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