In the construction business world, one constant factor you are likely to encounter is change, particularly in the financial landscape. One such change that can bear significant implications for small businesses is rising interest rates.
Understanding how this impacts your construction business and identifying solutions to counteract these effects can be vital to sustaining and growing your company.
When interest rates go up, borrowing money becomes more expensive. This can impact your ability to make a profit on construction projects. You might have a more challenging time getting financing for new projects and have to pay more for the funding you get. Fewer people may be looking for your construction services when the economy slows due to rising rates.
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Topics:
Holistic Bookkeeping Services,
Contractor Lines Of Credit,
Banking,
Construction Business Interest Rates,
Interest Rates
Getting approved for a business loan or line of credit is more complicated than qualifying for a personal loan. Small construction business owners must be adequately prepared to meet with a lender to present their business in the best possible light and ready for the money they need.
Think of all the times:
- You loaned money to a friend or relative
- Provided labor and materials for somebody's home or business without a deposit check
- Did change order work that you never got paid for doing and never will
- Gave a subcontractor/employee an advance on their paycheck, and you never got paid back
Multiply that by 100,000, and you will understand why banks seem so tight-fisted about loaning money.
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Topics:
Cash Flow,
Bookkeeping,
Contractor Cash Flow Problems,
Financing Secrets Revealed,
Banking
Contractors want money; banks want to lend money, what's the problem?
Think of all the times:
- You loaned money to a friend or relative
- Provided labor and material for somebody's home or business without a deposit check
- Did change order work that you never got paid for doing and never will
- Gave employees an advance on their paycheck that you never got paid back
Multiply that by 100,000, and you will begin to understand why banks seem so tight-fisted about loaning money.
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Topics:
Contractor Challenges,
Contractor,
Contractor Tips,
finance,
Banking
