Relying on credit to cover lean times during projects or payment delays shouldn't be a habit. However, for many construction companies, it's a necessary reality in a challenging economy. Although it's hardly easy to obtain financing, the market has expanded to include many options. Therefore, if you look carefully enough at suitable providers and their financing offers, odds are you'll find something to your liking. Let's take a look at some of the more common options available to contractors. Taking out a loan The most logical place to look for cash is your current bank. Assuming you have a good relationship with your bank and your business is in good standing, you should be able to obtain a conventional bank loan. There could be some roadblocks, however, if you:
- Can't show sufficient cash flow to assure repayment,
- Have a poor credit history, or
- Don't have sufficient collateral to cover the debt.