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5 Ways Unsecured Business Loans Help Your Construction Company

In the world of construction, companies often need capital to fund projects—and quickly.

Unfortunately, traditional financial institutions are unable to accommodate these need in a timely manner. In the event a bank approves you for a small business loan—which isn’t as likely as you might think—it may take 30 or even 60 days before those funds are available in your business’ bank account. In a demanding industry where you need to meet deadlines to keep your reputation intact, that’s not particularly helpful.

Luckily, construction business owners who need money fast aren’t completely out of luck. Instead of spending an incredible amount of time trying to secure a loan through a bank, they can instead turn to alternative lenders that offer unsecured business loans.

Easy to obtain, these kinds of business loans require minimal paperwork. You don’t have to put up any collateral to secure financing either; funding is determined by the performance of your business. And the best part? Once approved, money will appear in your bank account within a few business days. What’s not to like?

With that in mind, here are five ways unsecured business loans can help you grow your construction company.

1. Buying or leasing construction equipment.

Over time, construction equipment wears down. To continue being able to do great work, you need to either spend serious bucks tuning up machines—or you may even need to buy new ones altogether.

In other instances, new technologies are released which are truly transformative in nature. To increase efficiency and remain competitive, you may have no choice but to spring for a new machine.

Construction equipment, unfortunately, does not come cheap. Good news: Contractors can use unsecured business loans to buy or lease new or used construction equipment. With the new equipment in tow, they’re able to take on additional projects and grow their businesses.

2. Moving to a new facility or updating an existing one.

You have to house your construction equipment somewhere. But as you expand your business and add more machinery to the mix, you may simply need more space. To accommodate your growing fleet, you could either build a new facility on your existing property or move to a larger space.

Additionally, as your business grows, you may also determine that you need to open other locations that expand your geographical footprint. By opening a new facility two hours away from your current one, for example, you’re able to serve a much wider range of customers.

The decision to upgrade your facilities, expand to an additional location, or uproot your business altogether will almost certainly carry a hefty price tag. Unsecured business loans can help you absorb these costs.

3. Covering operating expenses.

Additional projects require extra manpower, supplies and equipment, among other things. When you stretch yourself thinly, it can be difficult to come up with the cash you need to cover your recurring expenses—like rent, utilities, insurance payments, taxes and payroll. It can also be difficult to pay vendors’ bills on time.

An unsecured business loan gives you the peace of mind that comes with knowing you’ll be able to pay all of these operating expenses in full—and on time. There’s no sense in stressing yourself out each month as you frantically wonder how you’re going to settle your bills. With an unsecured business loan, you won’t have to.

4. Marketing your business.

Like any other business, construction companies need to advertise their services from time to time to attract new customers and increase name recognition. Unfortunately, this is often easier said than done, as contractors have enough expenses as it is. Marketing can often be seen as a luxury.

With the funds from an unsecured business loan in your bank account, you can invest comfortably in strategic marketing campaigns that will generate revenues down the road. That way, you won’t have to worry about struggling to meet your other financial obligations—which is a major reason construction companies hesitate to launch advertising initiatives in the first place.

5. Hiring and training new employees.

It’s incredibly difficult to really expand a business without bringing new blood into the mix.

Any growing business needs additional employees from time to time, and construction companies are no different. In addition to the manpower needed on jobsites, successful construction companies also need an increasing number of employees to handle routine office responsibilities—like payroll, HR duties and communications.

Unsecured business loans can be used to hire and train new employees, getting them up to speed on their job responsibilities and what’s expected of employees at your company. With additional workers on board, you’re able to serve more customers and cover a larger area.

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