Construction/Contractor LoansConstruction Companies Hit The Nail on The Head with Financing Solutions From UBF
Construction Company Financing by United Business Funds
Securing construction company financing can seem like a daunting task, but at United Business Funds we like to keep things simple. Our streamlined application process, competitive interest rates, and friendly team of specialists, all help to make us one of the industry’s leading financing suppliers.
Construction finance has been tough to come by in recent years. Many of the big lenders have been hesitant to fund individual or small-scale projects, choosing only to support big corporate developers in their efforts. However, we’re more optimistic about the future of construction and are already seeing strong signs of growth in this resilient sector. So if you’re looking for construction finance or just wanting to learn more about your options, then here’s a short overview of how it all works.
A Booming Construction Industry
Construction spending in the U.S. is approximately $943 billion per year. The industry has a significant impact on the general economy but is also vulnerable to broader economic disruptions. Despite some tough times in recent years, things are looking up. Since the economic downturn, it’s undergone recovery in fits and starts, mainly due to it comprising so many diverse groups. Some segments are doing better than others, and even among growth segments, some are growing more quickly than others. However, the overall financial picture for the construction industry is viewed as optimistic.
Alongside the U.S. economy as a whole, construction is showing several strong signs of rebounding and future growth.
The unemployment rate for the construction industry declined in April to a seven-year low of 6.4 percent.
Private residential construction is growing, as demand picks up for homes and apartments.
Private non-residential sectors are also growing. Among the strongest: Power construction, including work on oil and gas fields, pipelines and electricity.
Public construction shows more mixed results, since projects like highway, street, and school construction are subject to the ups and downs of federal, state, and local budgets.
Industry watchers are cautiously optimistic about the construction industry’s future growth. That’s why we believe that having access to business capital is a prudent strategy, both to leverage growth opportunities now and to be well situated for uncertainties that may lie ahead.
What Can Construction Finance Be Used For?
Whether you want to build an individual home or multi-apartment complex, United Business Funding is uniquely positioned to help construction companies and individuals do just that. Not only can qualified construction companies obtain business loans for up to $2 million, but the application process itself is quick and easy. Once approved, funding can occur in just 3 days, and funds can be used for virtually any business need, including:
Purchasing new or used construction equipment and materials
Expanding or upgrading your company’s facilities
Hiring new employees; training and education
Overcoming unanticipated business expenses
Managing cash flow
The United Business Funding loan application and approval process is tailor-made for busy construction industry professionals. We can help you arrange short term funding or provide a permanent loan to get your project up and running.
How Does Construction Finance Work?
Finance for construction projects can either be obtained by the prospective owner or building company. These types of finance solutions have different guidelines to other types of loan (such as car or home improvement loans) and sometimes involve monitoring through to completion.
Construction finance is usually a short-term arrangement (up to a year) and is based on variable interest rates that adjust in line with the prime rate. It’s typical for borrowers to be put on bank-drafts once approved and only required to make interest payments during the initial construction period.
Once the project is completed, the finance solution can then be rolled over into a mortgage or repaid upon sale of the property. It’s essentially a two-step process involving a temporary initial loan that allows the project to commence, followed by refinancing into a regular mortgage (or repayment).
Here’s what to expect from United Business Construction Financing:
Streamlined underwriting and approval that won’t keep you waiting for weeks or months
Funds in your account in as little as 3 days after approval
Repayment terms that are structured to your business model and cash flow
Capital that can be used, at your discretion, for any business expense
Poor credit is not a disqualifier
We’ll always give you a competitive interest rate and favourable repayment terms, making United Business Finance the smart choice when it comes to construction finance. Some borrowers may be eligible for a fixed rate solution or tailored arrangement where closing costs are only paid once. We work hard to create finance packages that meet the specific needs of our customers and are always available to discuss different options.
Learn More About Our Construction Finance Options
Construction financing from United Business Funding can give you the business capital you need, for today and tomorrow. Our tailor-made packages are the ideal solution for busy operations managers or home-builders. We’ll take care of all aspects of finance, so you can focus on the construction project at hand. From interior décor to project management, you’ll be able to concentrate on the elements of construction that matter to you most.
Our hassle-free application process is fast and simple, with unrivalled support the whole way. Learn what many construction companies across the country already know: UBF business loans and merchant cash advances are valuable tools of the trade.
CLICK HERE to complete an application online or call FREE 888-351-3863 to speak with one of our funding advisors today.