Availing business loans for the construction industry is a daunting task and proves to be tough especially for builders. Although banks and financial institutions do offer loans for the construction industry, it is not all that easy to avail them due to the nature of the business.
According to the recent data analysis, banks do not accept/approve loans of more than 60% of small businesses and this percentage still goes up in the case of the construction business. The loan requirements are little stringent for builders and contractors making it difficult to qualify.
Business loans for builders
Builders and contractors of the construction industry are facing a lot of funding issues due to lack of adequate funding options. The businesses require adequate funding to boost the sales as well as profit. Fortunately, there are business loans for builders that are available on the market apart from traditional bank lending. These loans are business loans from non-bank lenders which are either in the form of collateral loans or cash advance against the sales.
Merchant cash advance loans are another type of business loan available for builders. The lenders of the cash advance loans can customize them to suit the needs of the construction industry making them great funding options.
A conventional bank loan cannot be of great help to the small business in the construction industry as they are not easy to avail and involves long procedures and burdensome paperwork. The bank is regulated by the government have stringent rules when it comes to approving loans and qualifying for the business loans is a difficult task. Even if the bank assures of approving the loan the entire loan process is time-consuming and requires a lot of documentation to get approval. The long process of the traditional loans is forcing small businesses in the construction industry to turn to cash advances that can be availed quickly and easily in less time. Hence conventional loans do not make a great funding option for small businesses, especially in the construction industry.
Merchant cash advance loans
On the other hand, merchant cash advance loans provide business loans for builders based on the past and future success of the business and are based on the sales of the business. The cash advance loans are free from collateral and are processed in few days.The process time and independent collateral factors make these loans best options for builders.
Business loans for builders are approved by the lenders based on the financial history of the business and the credit card sales. It is important for the business applying for the cash advance to accept payments with credit/debit card to avail the loan.The small businesses in the construction industry have more than 95% approval of the cash advance loans and qualifying for the loans is also easy as the advanced are sales based.
There is more than one good reason to apply for business loans for builders with merchant cash advance companies. Here are few advantages of applying for a merchant cash advance
- Qualifying for loan is easy
- Applying for the loan is simple and can be done online
- Involves less paperwork
- Quick approval
- Fewer chances of rejection
- Funds can be used for various purposes.