Construction companies face a number of challenges when trying to secure financing. Traditional lending institutions, due to red tape, often take too long when processing loan requests, causing construction companies to miss out on lucrative opportunities. Additionally, having a reliable source of working capital to keep construction companies moving forward when they have committed to large, multi-stage projects. Fortunately, there is a solution which provides a renewable source of funding without having to go into debt.
The True Value Of Construction Equipment
Yellow iron, vehicles, earth movers, machinery, tools, and more have an intrinsic value. Construction companies can tap into the value of the equipment they own to create a revolving line of credit. Through asset based financing solutions, this line of credit provides a reliable and flexible source of working capital without the need for debt-based structures, such as bank loans.
Construction Companies Have More Freedom With Asset Based Financing
Traditional loans have very specific purposes. Utilizing loan funds for anything outside of the designated purpose could cause construction companies to fall in breach of the lending agreement, and trigger hefty penalties. Asset based financing solutions, on the other hand, have no such restrictions. Asset based financing can be used for everything from meeting financial obligations, purchases, acquisitions, bids on projects and expansions.
Asset Based Financing Promotes Growth
Asset based financing is the only program available which provides increased funding as time goes by. When construction companies acquire more equipment and see an increase in revenue, the limits on the revolving lines of credit also increase. Asset based financing is designed to keep construction companies moving forward, without hindering their momentum by taking on unnecessary debt, negatively impacting business credit ratings, or charging hidden fees or prohibitive interest rates. Construction companies can focus on taking on client accounts and growing, instead of worrying about paying off debt or trying to navigate the red tape of traditional lending institutions to get the funding they need.
Working Capital Solutions For Construction Companies
If you own a constructions company, and you are ready to leave the debt cycle of traditional loans, contact the team at CNH Finance. We will perform an in-depth analysis of your construction equipment and receivables to create a flexible and affordable financing solution which does not place debt on the balance sheets, does not impact credit ratings, and which promotes long-term success.
