Construction/Contractor LoansConstruction Companies Hit The Nail on The Head with Financing Solutions From UBF
Construction Company Financing by United Business Funds
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
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.
What Can Construction Finance Be Used For?
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
How Does Construction Finance Work?
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
Learn More About Our Construction Finance Options
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.