Winter can be a brutal time for the construction industry. Business tends to slow because clients are less likely to invest in new work on short projects during the cold months. The jobs you do have also get harder, and winterized equipment is often necessary to safely make progress. If you are trying to prepare for winter work and you need capital to invest in your business’s success, construction loans can help you get what you need. There are a few ways to do this.

Using Working Capital Loans for Construction

Short-term loans for working capital exist in every industry. When it comes to construction, there are a few ways to work them out. One is to use an existing titled asset like a vehicle or company real estate as collateral to access a low-cost loan with a structure that allows for cash-out financing. If you have the assets, this might provide you with all the capital you need to get ready for winter.

You can also find solutions for working capital that use business assets like supply inventory or invoice factoring, so there are options if you do not have any assets to use as collateral. Unsecured construction loans and lines of credit are also available from some lenders, but they have low balance limits and high costs.

Selecting the Right Financing

The key to any strategy for financing working capital is matching your need, your timeline, and the repayment structure. The closer you can time your loan distribution to your actual need, the better because the investment in PPE and tools for winter will pay off as you complete the jobs you have lined up. With the right choice of loan, you could make minimum payments until the warm weather brings a busier work season, then pay off the balance quickly.

Additional Construction Loan Options

If you need a larger sum of capital with longer-term financing, milestone-based construction loans can be used for operational capital across the entire life of a long project. These loans take longer to approve than working capital loans or credit lines, but they provide you with regular cash distribution events as you clear key milestones on the project.

In the end, the right loan is the one that suits your business at the moment, serving its needs at its current stage of development. The range of choices out there exists to provide you with the chance to get financing that just fits, so consider your options carefully.