Construction working capital loans are perhaps one of the most versatile loans you can take advantage of. It may seem like an exaggeration to say that a loan like this can be used for anything, but it’s the truth. Just take a look:
- Basic business expenses. This includes the rent for your facilities, utilities, office supplies, computers and other IT stuff, and office furniture. Every type of business needs all these things, and a construction company is no exemption.
- Heavy equipment. Unlike other companies in other industries, a construction company often requires the use of heavy equipment. Buying these machines or even just renting them can be very expensive. This may make it difficult for you to complete a project if you don’t have the budget for needed equipment.
And when you add the extra construction supplies, the expenses can really stack up.
- Your workers expect to be paid on a regular basis and on time, and they won’t really care that business is slow or that a payment from a client has been delayed. You have to pay them promptly, and in this regard a shortage in your working capital can be disastrous. A construction working capital loan can avert this disaster.
Some projects may also require you to hire more people, so you may need a fresh infusion of working capital as well to cover the extra costs of new hires.
- Having no insurance for construction workers working in the field where accidents are liable to happen is not a good idea at all. If you foresee having trouble coming up with insurance payments, it’s better to get a working capital loan than to risk not having insurance.
- Business taxes. It’s not just your civic duty to pay your taxes. The tax officials can actually seize your assets if you fail to pay. The tax man is the last person you want to deal with so pay your construction taxes promptly and in full.
- There was a time when construction companies relied mainly on word-of-mouth and personal networks to market their brand. Nowadays, construction marketing has become more sophisticated. This is especially true online, because more and more people use the Internet to find the construction company they want to do business with.
- Unforeseen expenses. Construction is an industry in which Murphy’s Law is pretty much in effect all the time. Schedules get delayed, problems appear out of nowhere, and accidents happen. Nothing is ever done on time and within budget. And when something goes wrong as it always does, you need to have sufficient working capital to cover the extra expense.
Since by definition you can’t foresee when such expenses will crop up—you only know that they will, sooner or later—you may want a construction working capital loan to shore up your ready funds.
Get a construction working capital loan, and be surprised at the many you ways you may be able to use it.
