It goes without saying that any small scale business needs some extra cash injection from time to time. This is no different for construction companies which have an unstable and unpredictable course that is highly influenced by economic patterns. Many traditional lenders shy off from offering loans to construction companies due to the unstable nature of the industry. To counter this, merchant cash advance companies provide merchant cash advance for construction companies to keep them in business.
A construction company can enjoy a couple of benefits
A construction company can enjoy a couple of benefits that come with applying for a merchant cash advance. Their loan application process is simplified with little documentation being needed; in comparison to traditional lenders such banks who are characterized by long and strenuous loan application procedures with a need for a barrage of documentation. During the application for a merchant cash advance, you will need to have your business’s financial statement, the credit card transaction history in your business as well as your projected credit transactions in the future.
MCA companies have high approval rates which make them be quite reliable for construction companies who apply for merchant cash advance for construction companies. This is in contrast to traditional lenders who have high decline rates for the small business loan applications. Recent statistics indicate that traditional lenders have decline rates of about 60% to the loan applications made by small scale businesses, quite an alarming figure. If you couple this with the unstable and unpredictable nature of the construction industry, it would be prudent for one to try out a merchant cash advance.
Construction companies with a bad debt history
Construction companies with a bad debt history would still qualify for a merchant cash advance provided that they meet the other requirements. In addition, you won’t need to provide any form of collateral to qualify for a merchant cash advance for construction companies. These are quite key as most of the construction companies are locked out by most of the traditional lenders due to falling short of these.
With an increasing need for funding for the capital intensive construction industry despite its unstable nature, there is a need for lenders who are willing to risk it all to save these enterprises. This has led to the development of customized MCA companies that have dedicated their efforts in the provision of merchant cash advance loans. As a construction company, you can source for funds from this kind of MCA providers since they fully understand the nature of the industry and your pressing needs.
The repayment schedule for the merchant cash advance is quite sustainable and convenient for most of the construction companies. A fixed percentage of the daily credit transactions will be deducted to repay the lump sum that a construction company is given. This implies that higher amounts will be paid during days with high sales volumes while those with low credit sales volumes will leave the construction company with enough cash to sustain itself.
MCA providers are the go to option for construction companies which are in urgent need of cash to finance their ventures. Applying for a merchant cash advance for construction companies is a convenient, reliable and quick way of getting extra funds for your construction company.