The construction industry is a critical part of the economy for the simple reason that it fulfills a basic requirement – housing and civic infrastructure among other things.
Understandably there is high demand for construction work but despite that, the traditional lending agencies and banks have found a way to deny easy credit to construction businesses.
Although it is frustrating for the construction businesses to endure such challenges, this has been a blessing in disguise as it brought forth alternative direct lender funding to be accessed by the construction businesses.
Of course, there are risks involved in the construction industry but then every industry has its own set of risks that may vary in degree.
It is also rather intriguing that the big construction companies face no difficulty in getting access to funds. The funding approval system does appear to be biased against the smaller construction businesses.
That’s unfortunate because it is the smaller construction contractor firms that carry out the real work on the ground irrespective of the size of the project.
These are the businesses that have to meet all the overheads as well as take responsibility for the obligation of completing the project on time.
Even if they have enough projects on their order book, they will find it difficult to make a smooth transition from one project to another if they don’t have the required funds to invest in the new project.
Work around the challenges of long payment timelines
If construction firms receive the payment of a completed project within a week of completion of the project, they would never face any cash flow volatility.
That’s a far cry because the construction industry has among the longest payment timelines of 90-120 days. Notably, the end of a project often leaves the construction companies not just empty-handed but also with varying levels of operational debt.
This makes it extremely difficult for these construction companies to start work on the next project on their hands.
However, if their application for business funding is easily approved and the funds are made available in a quick time, they can get started with their next project.
Move confidently to your next project with easy funding
It’s not easy for a construction contractor firm to move smoothly from one project to another unless they have fast and easy access to funding.
Many businesses have to drop projects from their order book as they don’t have the necessary funds to execute the projects.
In this way, their credibility and reliability in the market get dented which has a long-term and adverse impact on their ability to grow.
Thankfully, they now have access to alternative modes of funding that are dedicated to meeting the needs of small and medium-sized businesses.
Find the right lenders who offer flexible terms
The main focus of such alternative lenders is to look at the main strengths of the borrowers and how easily can they repay the debt within the agreed time.
They don’t get stuck with getting collateral for the money they lend and neither do they take your credit history into account in order to extend your credit.
When you approach a leading company like Direct Lenders Funding for your credit needs, rest assured that you will get a fair approval and your chances of getting the funds would be much higher than with most other lenders.