CSC-Blog-Subcontractors-Specialty-Trade-Financing_032019

Subcontractors & Specialty Trade Construction Financing

While the construction industry as a whole seems to be booming, subcontractors and specialty trades face some unique challenges, including being asked to meet requirements imposed by larger prime contractors that may be unfavorable to them, such as time constraints, payment terms, and contract provisions. On top of that, the skilled labor pool is aging, and many subs and specialty trades are having difficulty hiring a sufficient number of skilled replacements to meet demand — and they’re focusing on fewer opportunities, taking projects closer to home, to minimize commuting time to job sites and enhance employees’ quality of life.

According to CLA, savvy subs and specialty trades will stay on top of their cash flow management, review technology to see what can help minimize the void between qualified workers and job timing, and seek to become an employer of choice in the competitive labor market — developing strategies to open a pipeline of future employees. They also may need to review their cash collection cycle and determine if interest and finance charges should be allocated to jobs to make up for the lag between paying employees and vendors and receiving payment from prime contractors and other customers.

Why Alternative Financing

That last point can be a significant source of pain for subs or specialty contractors, regardless of their area of expertise: concrete, electrical, excavation, painting and paper hanging, plastering, drywall, insulation, plumbing, heating and air conditioning, roofing, siding, sheet metal work and more. There’s just a small likelihood that a bank will come to the rescue, and even if one does, the process typically takes at least 30 days.

That timeline won’t help subs or specialty contractors take advantage of immediate opportunities or escape short-term jams — but an alternative lender like Clear Skies Capital (CSC) can help. With the ability to often provide funds within one business day and offer a much less cumbersome process, CSC is a popular option for:

  • Working capital loans — ensure you can always make payroll, even when it can be several months before your invoices are paid, and gain the ability to purchase materials upfront without stressing
  • Equipment financing — ensure team members have the right tools for the job, which includes investing in new technology as appropriate
  • Lines of credit — ensure you have the ability to accept opportunities because you can ramp up/staff up for new jobs, always pay your taxes on time and enjoy peace of mind by having a financial “safety net” to draw from

CSC is in the business of helping subs and specialty trades 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:

  • Less than perfect credit is not a deal-breaker.
  • We offer flexible terms up to 48 months.
  • Our loans have fixed payments and interest rates — and they aren’t linked to credit card receipts.
  • Our streamlined funding process 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.
  • We provide excellent customer service.

Here’s the bottom line: We’re focused on saying “yes” — something that can be especially encouraging after you’ve heard “no” from one or more traditional lenders.

The Takeaway

If you’re a sub or specialty trade, 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 subs and specialty trades, so we’d love to share our expertise while investigating loan alternatives with you. Get started today! Discover how much you qualify for today.