Finding the right financing for your construction business

Finding commercial construction financing might be difficult, but it’s one of the most beneficial parts of owning a company. It’s an indication that your company is growing and ready to expand, either by adding more space or opening a new site.

If you’re considering real estate construction or expansion, the following stage can be a significant financial commitment. Many business owners, particularly those with poor credit ratings who require construction finance, are finding that the costs of investing in construction are putting a strain on their cash flow. Rather of just looking at a company’s credit score, New York Tribeca Group considers its overall health and performance.

By partnering with NYTG for business funding, you can receive a personalized funding plan fit for your individual cash flow needs. We believe taking advantage of business success should never put you under strain, it should help you grow. We’re here for you, now let’s understand how it works. 

Understanding the Types of Commercial Construction Financing

The “good” news is that you have options when it comes to commercial building finance. The “bad” news is that you have options when it comes to commercial development finance.

When considering the future of construction financing, there are two options: short term and long term. Consider this: how long do you estimate the project to take?

Short Term Financing is better if: 

  • remodeling will take a month before extra business can start flowing in
  • cash flow is strong regardless of how long the project takes, 

Long Term Financing is better if: 

  • profit margins are always thin or during this building period (long term financing would help stretch out the payback period)
  • the construction is going to take awhile, long term financing would also be better in this situation as well. 

Why Utilize Commercial Construction Financing

When all of the fees for labor, materials, site development, and general construction are totaled up, businesses wishing to remodel face costs of hundreds, if not millions, of dollars.

Cash flow can be maintained without a severe hit to working capital or growth capital by financing the construction phase with outside funds. Debt is a crucial component of economic progress. With more and more industries turning to alternative financing, it’s more crucial than ever to seize development possibilities and keep up with the competition.

Uses for Construction Financing

Commercial construction financing is not for purchasing existing real estate, as that would be a mortgage loan. This type of funding is to be put towards construction costs. Some examples include: 

  • Engineering and architecture fees
  • Land development
  • Utilities installation
  • Specialized equipment
  • Labor
  • Development fees
  • Unexpected setbacks from weather or digging underground
  • Maintaining business cash flow while funds go into construction
  • Hiring more of everything to finish project before competition

If you’ve worked in commercial construction before, you’re aware that there are numerous moving parts to consider. Unexpected mishaps occur, and immediate cash can assist in their resolution. It’s a good idea to ask for more money than you need to avoid future problems.

Renting or leasing construction equipment may be a better fit for your budget. Renting a hydro excavator is a better option than buying one for a one-time use. When you hire a demolition service, you will save money on clean-up because it will be done professionally. It’s a good idea to ask for more money than you need, but be prepared to make cost-cutting decisions along the way.

How it Works

Finding a loaner is the first step in obtaining finance for a project. That’s us, right there! Next, complete our online application so that we can assess your company’s financial situation, credit score (bad credit is fine; we don’t automatically reject a bad credit score if the company is otherwise healthy), and other factors that influence approval and allow us to offer competitive rates and terms.

A business strategy containing an outline of the construction project you’re financing is also required. This section contains information on your company’s operations, updated financial information, current debt obligations, data about current operations, and future projections.

We’ll deposit the funds into your company bank account once you’ve been accepted, and you can start investing right away. Because each funding program is tailored to the specific needs of each merchant, the details of the return period will need to be discussed with your funding agent.

Types of Commercial Construction Loans and Financing

Short-term funding is available from New York Tribeca Group for firms in need of immediate working capital that will be repaid in a year or less. When a business owner sees a chance for expansion that requires urgent action and money, or when they don’t want to make a long-term commitment to payback, they typically come to us.

If a short-term loan of six to twelve months does not meet your demands, the Small Business Administration offers five to ten-year small business loans for commercial projects.

Banks also provide loans for business development, remodeling, and mortgages for the purchase of commercial real estate. Unfortunately, being authorized for these loans can take years, and they often have a long payback period, which can put a strain on cash flow. You might prefer a loan if you’re concerned about interest rates. Bank loans and SBA loans, on the other hand, do not have the same speed as internet finance when it comes to taking advantage of opportunities.

What Do You Need To Qualify For Commercial Construction Loans

New York Tribeca Group has an 86 percent repeat funding rate because our short-term online programs are so easy. It’s best to apply for funding at the peak of your cash flow. This strong reflection of your business will allow you to receive the best rates and terms available. We do accept low credit. The healthier your business, the better financing you can receive. 

Have a business plan outlined. Include the following: 

  • your current cash flow
  • the payback you can handle without being overleveraged
  • the returns you expect on your investment are

To apply for funding, fill out our online form and wait to hear back from NYTG as soon as we can process your application. From there we will let you know if you qualify based on your initial application and move forward with the process. We fund most businesses within 72 hours of acceptance. The sooner you submit the required documentation and terms of agreement, the better.

You can view our full qualifications here.

Financing With New York Tribeca Group 

New York Tribeca Group is a seasoned backer of commercial construction, refurbishment, and expansion projects. We recognize that growth periods can be taxing on a company’s finances, and that owners need a dependable backer to help them expand. When you choose NYTG as your partner, you can be confident that you’re working with a funder who actually cares about your company and will devise a strategy to help you achieve your financial objectives.

What Happens After?

Your short-term funding should be coming to an end once your construction is finished. Some business owners prefer to take a break and work with their personal cash flow, while others choose to continue on their growth route and take on more debt. New York Tribeca Group frequently renews business owners’ investment and remains a partner in their expanding efforts.

Many new costs arise after construction, necessitating the use of working capital. It will be necessary to furnish, sell, and staff the new area. The building is only the first stage. We’ll be there to help you every step of the way.

Get started now. Have working capital today.

Answer a few basic questions about your business to see all your financing options in minutes.