Business is booming, particularly the property construction business and this is creating a great business environment that is being fueled by low interest rates, rising home prices and strong consumer confidence. Therefore there’s a bottleneck at the lending part of the supply chain especially with large institutional banks but there is a solution. Non-traditional lenders have come to the rescue and have been able to offer large and small business loans to many companies including those in the construction industry. This has been a huge help to the construction industry and to the entire Australian economy.
Business loans for the construction industry
The booming construction market has its normal requirement of always needing more money to complete projects and big banks are always slow to provide funding and the construction crews are left there waiting for prolonged periods and the machines grinding to a halt. Business loans come in handy here and provide the companies with the capital they need to get the crews back to work and get the project done. Most of these business loans will generally be from around $100,000 up to $600,000 and are usually needed for a period of around three months or just long enough to get the property finished for the buyer.
The capital can even be had on a ‘pay per use’ basis where the borrower only borrows what they need and then do not have to take the entire loan if they do not need it. The risk is lower for both the borrower and the lender here so the construction company can get the house done and the loan can be repaid. The lower risk is eventually translated over to cost for the construction company and this is going to be reflected in savings for the homebuyer.
Larger banks will naturally create deadlock because of their size and the processes they have to go through just to lend out money. More importantly, big banks tend to be slow when processing documents since they have thousands of businesses trying to get their attention. There are lenders that lend specifically to businesses who need funds fast and this has helped the construction market boom and that has helped keep the Australian economy alive. Capital is the life blood of any business and it is essential that a business can get the funds it needs when it needs it. Business loan lenders have been making this possible when the large institutional banks have been unwilling or unable to get the funds available.
Business loans from ALC Commercial
If you need financial assistance for your construction business or for any other business related reason, ALC Commercial offers business loans of all shapes and sizes. Fill out the quick enquiry form for a free consultation to find out which business loan will suit you best.