Like any business, construction companies need steady cash flow to support your operational needs and expansion plans. This funding allows you to upgrade your equipment and improve your processes.

But acquiring the funds your business needs isn’t as easy as it sounds, especially where heavy equipment financing is concerned.

What are the Most Pressing Financing Concerns of Contractors?

Unfortunately, the coronavirus pandemic put a stop to many construction projects, resulting in lower profits for at least a few months.

What type of financing concerns are most common for contractors today?

1. Finding Resources for New Equipment

A contractor’s success lies in the power of their heavy equipment. Old excavators need an upgrade. And if you are winning bigger projects, then it makes sense to switch to heavier-duty compactors and bulldozers. But this type of equipment can be costly.

2. Needing New Vans or Trucks

Another common finance-related concern is the need for new company vehicles, whether it’s a car used by the project manager or a truck that transports equipment to and from the site. Contractors may be delaying this need until they get proper funding.

3. Shouldering Late Payments

Finance concerns aren’t always internal. If the arrangement with a client involves periodic payments, there’s always the probability of payment delays. Contractors can’t always wait for those accounts receivable to continue with the project.

All these finance-related concerns can lead to project delays and late completion. These delays are likely to have a negative effect on a contractor’s relationship with clients and consultants.

Don’t let financial restraints cause client dissatisfaction with your work.

How Do Contractors Address Heavy Equipment Funding Concerns?

The main funding-related concerns of contractors often revolve around lack of capital and the long wait for accounts receivable to come in. Getting the capital you need can be a challenge if you are uncertain about what type of funding to apply for.

Explore some of the most favorable options:

1. Equipment Financing Line of Credit

This type of financing is specially designed for contractors and other business owners who need funds for new equipment. The line of credit provides a fixed period of time where you can make equipment acquisitions. With it, you can combine multiple invoices into one financing agreement.

2. 100% Reimbursement Agreement

There will always be bigger and better equipment to make your construction work more efficient. If you choose to have a 100 percent reimbursement agreement with a lender, you can monetize the equity of any equipment you purchased within a specific period.

3. Working Capital Loans

Equipment financing isn’t the only concern of contractors. Consider taking a working capital loan if your financial concerns are related to other business expenses, like payroll and debt payments. You can also use this type of loan to cover unexpected losses.

Financing Solutions for Every Business Challenge

Regents Capital knows the different financing concerns that could be holding you back. We work alongside you to help you overcome financing challenges and secure the heavy equipment capital you need to move forward.

Maximize our team’s expertise today. Call us at 888.901.4207.