The U.S. construction industry had a banner year in 2018, and experts believe the boom is far from over. The Bureau of Labor Statistics and a report from Timetric’s Construction Intelligence Center forecast construction as one of the fastest growing industries into 2020, with real output reaching almost $1.2 trillion by then. Why? One of the biggest reasons is thought to be the upcoming effort to modernize the country’s decrepit infrastructure.
Other positives for construction are the fact that the renewable energy sector will be booming over the next few years, and the U.S. population is expected to grow from 321.1 billion to 338 billion, resulting in the need for more residential construction. Commercial construction is also expected to be on the rise, given more consumer spending and governmental investments in tourism, office buildings, and retail space.
Why Alternative Working Capital Loans
With interest rates steadily rising, monetary policies are tightening in major markets and starting to push up the cost of borrowing. Add the historical reticence of banks to lend to construction companies — a position reinforced when many traditional financers took a beating from 2007 to 2009 — and it’s clear to see that the path to construction financing “the old-fashioned way” is fraught with challenges.
Even when banks consider making working capital loans, the process typically takes at least 30 days — which doesn’t help construction companies take advantage of immediate opportunities or escape short-term jams. Is it any surprise that alternative lenders like Clear Skies Capital (CSC) — which can often provide funds within one business day and feature a much less cumbersome process — are becoming a more popular option for construction companies looking to borrow?
The Alternative Financing Situation
CSC’s working capital loans to construction companies can be valuable for countless reasons, including the following:
- Making Payroll — Ensure employees are always paid on time, even when it can be several months before invoices are paid.
- Ramping/Staffing Up for New Jobs — Never be forced to turn down an opportunity because of concerns about being able to foot the bill to gear up for it — with equipment and personnel.
- Purchasing Raw Materials — Gain the ability to purchase materials upfront without stressing, even though it can be months before payment is received.
- Paying Taxes — Make sure Uncle Sam receives on-time payments without having to cut back in other areas.
- Buying Equipment — Ensure team members have the right tools for the job, which includes investing in new technology as appropriate.
CSC is in the business of helping construction companies overcome the challenges presented by traditional financing, offering options focused on supporting growth. Here are a few reasons why we’ve been successful for so long:
- Working capital term loans are available from $5,000 to $1 million, and we also offer lines of credit up to $100,000.
- Just $12,000 in monthly deposits is required.
- 500+ credit scores are eligible — and less than perfect credit is not a problem.
- You only need 4 months in business to qualify.
- You’ll enjoy a streamlined funding process that includes very little paperwork.
- You can be approved within 24 hours and have 24-hour access to funding.
- The interest on your loan is tax deductible.
- You’ll benefit from excellent customer service.
Basically, it comes down to this: Our business model is designed so we’re in the position to say “yes” — something that’s especially exciting after you’ve heard “no” from one or more traditional lenders.
If you’re in the construction industry, you know it’s important to maintain a healthy cash flow to be able to accept new jobs, remain competitive and stay in business. Not having access to capital shouldn’t be the reason you remain stagnant. CSC has worked with many construction companies, so we’d love to share our expertise while investigating loan alternatives with you. Get started today! Discover how much you qualify for today.