If your business specializes in, or perhaps needs new development and renovations, then you have likely thought about construction financing. Whether it’s to purchase new equipment, hire subcontractors, or put the finishing touches on a project, there are additional, better financing alternatives to choose from than a loan. 

For example, not everyone who needs construction financing has impeccable credit, nor do they always have enough valuable assets that can be used as collateral to secure a typical construction loan. Not to mention, there tends to be a lot of tedious paperwork involved with loans, which can potentially slow down or even stop the progression of a project. So, what other construction financing alternatives are out there? 

Business Line of Credit 

A Business Line of Credit is a great financing alternative for construction financing. They are more flexible when it comes to spending, allowing you to make transactions for what you need, right when you need them. This allows projects to continue moving forward on schedule, rather than put them on hold while a typical loan process would cause delay. Another great benefit is the freedom to utilize the line of credit however you see fit. You are never required to explain the purpose or nature of your purchases, nor would you need to ask for permission first. 

Invoice Factoring 

Invoice Factoring is a great construction financing alternative when you need to “fill in the gaps” throughout a project. If you bill customers for services, then you understand that most agreed upon terms are to pay within 60 days. But if funds fall short in the meantime, you may risk putting a halt on your construction plans. Invoice factoring would allow you to be paid immediately after the invoice date to your customer, minus a small service fee. This is a very popular choice among those who have a proven history of repayment reliability. 

These are just a few great examples of alternatives for construction financing that you may want to consider. Contact Painted Horse Financial today for more information about what financing alternatives are right for you, and your business.