Construction Financing for Contractors

Construction Financing for Contractors

Every contractor has dealt with the frustration and stress of cash flow no matter how long you’ve been in the business. Delayed payments from clients or adjusted fees for projects can have you scrambling financially at times. For some contractors, this can slow down the growth of business. But the good news is that it doesn’t have to! With construction financing for contractors, you’ll receive timely payments to fund current projects and prepare you for future opportunities.

Construction Loans

A construction loan is generally for short term financing for real estate projects or new home construction. These loans are issued from a bank and are very similar to a line of credit. A contractor, homeowner, or business owner can apply for a construction loan, but there’s a catch. The term of the construction loan is only for the length of the time it takes to complete the project. Construction loans are paid off in monthly installments, but generally come with a larger down payment. 

Line of Credit

A line of credit provides a borrowing limit that a contractor can access at any time. It can be for a smaller amount for equipment or supplies or can be a more significant amount, up to the limit. However, this is not something you should max out. This type of financing is typically offered by a bank and only requires that interest be repaid on the balance. It’s recommended that a line of credit only be used in a true emergency situation and not as a consistent form of funding. 

Business Credit Card

A business credit card operates very similar to a line of credit in the way that there is an established limit to abide by. However, a credit card will generally have a lower credit limit. But this isn’t very helpful to contractors whose expenses can easily be thousands of dollars in one purchase. A business credit card can be tempting due to the perks of points that you can cash in, but generally these points don’t outweigh the negatives. 

Financing Through HFS Financial

By far the easiest and best way to get construction financing for contractors is to partner with HFS Financial. You’re the expert on your business and that should get your full attention. Take the pressure of offering financing off of your shoulders and leave it to the experts at HFS Financial. When you direct your clients to HFS Financial, you’re giving them the gift of experience. Our knowledgeable team has years of experience in the home improvement financing business and is ready to walk your clients through the process. The team at HFS Financial works directly with your clients to connect them with the best financing option for their home improvement project. Not only will they get the non-staged funding they need for their project up front, they’ll be able to pay you on time, all the time.

Whether they’re financing a swimming pool or a major room renovation, HFS Financial will help them find the financing they need without any hassle or red tape. Getting started is as easy as completing a 60-second loan application. Give us a call today at 1-800-254-9560 for more information. “You Dream It, We Finance It.”

Construction Financing for Contractors

HFS Financial solely operates in the home improvement lending space which means we can confidently say that we are THE HOME IMPROVEMENT LOAN EXPERTS. When you apply at HFS Financial you will get a customized loan experience tailored to ensuring you get the best personal loan to meet your home improvement loan needs.