There is often a discrepancy on what a general contractor really is and does, and this is usually due to mistaking general contractors with another piece of the project. General contractors oversee projects, coordinating supplies and suppliers, employees and contractors and subcontractors, and the equipment necessary to complete the job. With all of these moving parts, general contractors often require business funding to get over up-front costs required for payroll, equipment, regulation, and other fees to get the wheels turning. It’s worth remembering that many successful business owners take advantage of business loans to take advantage of opportunities and grow, as opposed to needing it due to financial trouble.

As a general contractor, your options for business loans are diverse and change on a case-by-case basis. A general contractor most commonly uses SBA loans, lines of credit, cash advances, or invoice financing. At Pay Less Business Funding, we help business owners understand which type of business loan is most appropriate for your contracting business, your goals and needs, and your financial situation. For more information on which type of loan is best for you and your business, take a look at our provided Services or contact us for more information or to speak with a Pay Less Business Funding representative.

SBA loans are ideal for small businesses because they are backed by the Small Business Administration. It can be difficult for contracting businesses to obtain traditional bank financing due to their strict requirements, so an SBA loan might be the perfect fit for you. With an SBA loan, the Small Business Administration agrees to cover a majority of the lender’s losses if you default on the loan, effectively protecting both sides of the agreement and providing a sense of security with an infusion of capital.

Lines of credit can be your next best option if you’re a general contractor. A line of credit is a sum of money provided by a lender such as Pay Less Business Funding, and you only pay interest on the amount that you use. This type of loan is similar to a traditional loan or a credit card cash advance, and typically are great for businesses that can project their future jobs and cash flow appropriately. These loans are also “revolving,” which means that once you’ve reached your approved line of credit limit, they can re-up and you can draw from them again. Perhaps the best part of this type of loan is that they can be approved quickly and the process is fairly straightforward, allowing business owners to pounce quickly on opportunities.

Our work with other construction-based companies and our connections within the industry allow us to help businesses that have been denied by banks in the past to acquire SBA loans, cash advances, or lines of credit to help general contractors grow their business. Contact a Pay Less Business Funding representative today to see how we can assist you in your growth goals.