A Construction company is a business that needs a large working capital. There are several costs to be covered from material purchases to wages of the construction crew. Maintaining a construction company means being prepared for a lot of unexpected expenses. The venture is very predictable and requires the need to  shell out cash or use credit. There are also slow periods in between payments. Thus, it is no question that construction companies need additional working capital whenever a project comes up. Several financing institutions offer options for businesses in need of construction loans. There are also several types of loans that count as construction loans thus getting one can be quite a challenge. We have laid out construction loans and paired them with the the ideal stage to get them with ensured compatibility with your business.   What is ideal for startup construction companies? Going into construction means investing into heavy equipment and machineries. Pieces of equipment used for construction are expensive. Newly established construction businesses are most likely not able to afford the machinery they need to get started. Equipment financing comes in handy for this type of situations. This working capital solution covers 80-100% of the money necessary to purchase an equipment. The payment terms are much like that of a short-term Loan wherein the borrower pays the creditor on a monthly basis. The terms for your loan will depend on the price and depreciation of the equipment. Approval rate for this loan is high because the equipment in question becomes a collateral for the loan. In case of a default, the equipment goes to the lender. Because of the collateral, equipment financing becomes a low-risk loan. Which means the criteria and requirements for approval is easy to comply with.   Are you planning to expand your construction business? Construction companies who are looking to expand can benefit from availing of a business line of credit. This financing option works like a credit card but without the card. A line of credit is access to capital that you can tap anytime. The creditor sets a limit for how much you can borrow. The business can use it for any purpose as long as it does not go over the set ceiling. Furthermore, the business only pays interest on the money they spent and not on the maximum amount set. You can count on this resource to for emergencies, especially when a client is taking too long to pay up. Unlike other loans that serve a specific function, a business line of credit is more diverse and can be used to serve several business needs.   Are there business loans for established construction companies? SBA (Small Business Administration) Loans are loans guaranteed by the US government. Financing is granted by banks and in case the lender defaults, the government pays up to 85% of the loan. SBA loans have low interest rates and long payback periods making them ideal for established businesses. They can be used for any business project as long as they fall under eligible use of proceeds. There is a lot of competition for this working capital solution so banks always choose borrowers with good revenue streams. That’s why this loan option is highly recommended for businesses that have already carved their spot in the industry.   WeCompete Lenders offers flexible working capital solutions that can accommodate the needs of construction companies. We can hook you up with reputable lenders that will offer you with the working capital solutions needed for your business. Contact us at +1 (844) 516-0633 or [email protected].