Bank
Loan for Construction Companies, Contractors, Landscapers, Plumbers,
Flooring, Roofers, Electrician, carpenters, Home Remodelling, Home
Builders, Interior Design, architects
Introduction
There
are huge corporate construction companies, that can easily finance
any big venture easily. On the other hand, small construction
companies, that are newly established or ones which deal in small
projects, like landscaping, remodeling, designing and interior or
repair work like plumbing etc., find it very difficult to get any
bank loan from financial institutions. The banks consider such
businesses under high-risk category and either denies them outright
or charge very high interest rates and that too only against
collateral.
The
other alternate funding solution which is known as the Merchant Cash
Advance and which assures and works as an aid when needed. In truth,
people who are a part of the construction business, like Construction
companies, Contractors and Landscapers are not only eligible but also
easily qualify for the MCA and business funding.
Do
you have a bad credit history?
It
is a set of the unshackled loan and there is no assurance hooked.
Infact the credit history and the credit scores are not considered
too important. So, in spite of having a poor credit or high NSFs, one
can qualify and achieve a BCA. The
application process is easy and quick, approval rates are high and an
advance is approved under following conditions also:
Bad
credit history
Lien
Bankruptcy
in the past
Multiple
NSF
A
reason is that the MCA and BCA look at the future of the company and
not at the past financial history. So if you have a good plan in
place and are able to show that there are many projects in your kitty
and you will be receiving money for the same then you can easily get
this finance approved.
Purpose
of investment
As
far as MCA and BCA are concerned, these are given without any
restriction on their usage.You can get the Business Funding approved
easily for any reason, concerned with your business.
A
small business may have seasonal requirements. Buying or renting
equipment for a project
Repair
or Replacement of tools/ equipment
New
Products or Services
Inventory
of the raw material and tools.
Business
Expansion/ new projects, etc. where the money will come in only when
you finish your work while you may need money before starting the
project itself.
Advertising/
Marketing/ banners and flyers for a seasonal upsurge in the
business.
Paying
the salary to employees/ hiring new people or temporary labour for a
project.
Some
old debt settlement or for tax payment.
Emergency
payment or any other business related payments.
It
can help to pay revolving credit or some past dues to be cleared
urgently.
Funding
options
When
a bank gives a loan it is at a higher rate of interest. Here the
options are many. You can avail 2ndposition
or 3rdposition
and even up to 6thposition
without any collateral and it is an amazing facility for fledgling
businesses which are already struggling and trying to borrow working
capital from reasonable lenders.
As
far as the amount is concerned, a small business can avail of these
Unsecured Business Loans, for different amounts depending upon their
receivables on the credit card. In a bank loan, the amount is decided
based on the eligibility and collateral and guarantee. These
Alternative Funding Solutions, are available from 5K, onwards, 10K,
15K even up to 50K. The only important aspect that needs to be
scrutinized is the amount that is possible to be earned by your
company in the short term and long term.
Easy
process
The
process of getting this Bank Loan Alternatives is very easy. The
small businesses and entrepreneurs who are just starting out can
approach any institution providing Business Funding. They do not need
much time to process the loan as very easy documentation is needed.
They consider Credit Card Factoring. This effectively means that they
will not consider your past debit record. Remember even if you have a
bad record, it is alright. After all, a business should look forwards
while learning from the past mistakes. So you cannot keep worrying
about a past record of high NSF. We must realize that businesses are
volatile and unpredictable. If for some reason you had multiple NSF,
that should not prevent you from taking up new projects, due to lack
of funds.
This
is where Small Business Financing comes in. These funders are aware
of the market conditions and work in a highly competitive market. The
factor rate may be high just like the loan interest rate, but as
there is no collateral, it is still easy to get this unsecured loan
approved in an easy way.
The
most favorable aspect is that there is no fixed tenure or fixed
amount of money to be repaid every week or month. Sometimes the
income is variables and fluctuates between seasons or due to other
reasons beyond the control of the borrower. The lender gives the
money to be recovered from the credit card receivables. This means
that every time the business earns money and some money come from the
credit card account, a small percentage is deducted and goes to the
lender. There is no loan term as such. This can make the borrowing
company relax and focus on its work better. This kind of arrangement
can work for bot short term and long term tenures.
Conclusion
Small
business financing is a different ball game altogether. A person just
starting out needs all the encouragement and financial help as he
cannot compete against the big corporate companies and it is
difficult to get unsecured Business Loans. Construction companies and
related small businesses need to have a solid financial backup plan
in place, as this work is unpredictable. There might be a sudden
influx of projects and then the companies need to get more inventory
of raw material and hire more people. Then there are times when the
projects may be less in number. So when they need money for a project
it is always urgent and has to be arranged immediately. They need an
alternative to a bank loan, that too without guarantee. MCA and BCA
take care of such requirements as these are easy processes and can be
approved very easily in a short span of time.
