Built with Billd: Part 1 – The key to using financing responsibly to grow your construction business
Growing a construction business is hard – growing it responsibly is even harder. And because financing has had a bad rap from the construction industry for so long, many contractors don’t understand that it can be the best tool to help grow their company. The reality is this: if you find the right financial partners, you can increase the amount of work you’re doing without over-leveraging yourself and disrupting your cash flow. Join Billd’s Jesse Weissburg (Co-Founder and CCO) and Robbie Reynolds (Director of Business Development) as they walk through how to identify the right type of financing for your construction business, and how you can leverage it to grow.
One of the main topics of this discussion is “what do finance companies look at when assessing your business?” And, as Jesse says, there are two main factors finance companies typically look at: what you have done previously, and what you’re going to do in the future. Traditional finance companies have always focused on the past, which can limit the support they are willing to provide. Fortunately, the emergence of project-based financing is helping contractors get the financing they need on terms designed specifically for construction.
Another valuable lesson shared is that the best time to secure financing is when you don’t yet need it. If you wait until you do need financing to seek it out, it will likely be harder to obtain, and the impact of not having it can be much more severe.
“ The reality of the situation is, if you truly, really need financing, it’s going to be tough to get approved. At least for the financing that will have the biggest impact on your business. So you want to go out and secure a partner when you don’t need financing.” – Jesse Weissburg Co-Founder and CCO, Billd