Commercial construction contractors, subcontractors, and manufacturers need cash flow before a project starts to secure equipment, buy insurance, cover payroll, and many other critical business expenses. Commercial Construction Financing is one option for contractors and subcontractors to borrow the funds they need.
You can learn more about commercial construction financing and Mobilization Funding by reading About Construction and Manufacturing Loans.
Keep your projects moving and bid on larger projects with these approved use of funds:
- Payroll
- Materials
- Supplies
- Vendors
- Insurance
- Equipment
- Bond premium
We’re Not Traditional Lenders
Mobilization Funding began with the interests of commercial contractors and manufacturers in mind. We provide loans to cover materials, labor, and other early-project expenses before you start billing for the job. These funds provide critical working capital to get the job started and manage the project’s cash flow efficiently and appropriately. The capital can also support surety bond underwriting.
- We don’t want you to borrow more than you need.
- Our repayment structure is designed with your payment applications in mind.
- We guide you through the process of getting funded.
- We’re always a phone call away.
Naturally, alternative lenders sprang up to help fill the void left open by traditional lenders, but the options were few and not ideally suited for construction companies, especially to a subcontractor’s needs. Factoring companies purchase a subcontractor’s invoice once it is approved by the general contractor, but those subcontractors still need to bankroll that first portion of the work — including materials, labor, permitting, insurance and bonding — all on their own. Just that can cost more than 10% of a total project cost. They need funding FAST.
Merchant cash advances (MCAs), also known as daily debit loans, provide cash within a few days and deposited right into a business’s account, which may seem ideal for cash-starved subcontractors, but once the lender starts pulling hundreds or thousands of dollars every day from the contractor’s business checking account, this blessing becomes a curse. Contractors have to scramble to estimate how much capital they actually have, and how much they’ll have tomorrow. This is when the MCA company offers another advance, and the cycle begins again, digging the subcontractor deeper and deeper into a nearly inescapable debt trap.
For a company that is just making the leap from residential to commercial, or that moves from smaller commercial jobs to a big government contract, acquiring the capital needed for the first 30 to 60 days of a job can be a real challenge filled with unknown risks. Combine this with lingering debt or damaged credit scores from the recession, and business owners can face an almost impassable roadblock.
