Construction Loan Financing
If you plan to start a construction project, having the financing to move forward is essential to your success. A construction loan will provide you with the financing you need to get started with a first down payment or other early expenses before you acquire long-term financing to cover the entire cost.
Finding construction financing companies for your building project can be challenging, particularly if you have a limited credit history, because many lenders consider it a more risky loan. That’s why Sapphire Capital Group (SCG) helps you finance your construction project from a private lender based on your sales rather than on your credit. With a network of over 90 lenders, we can help you find the one that best fits your needs.
Financing for Construction Projects and Businesses
SCG provides flexible financing solutions to help you accomplish your goals for construction projects. Our approach makes the financing process smoother and easier for you with services that we design to meet your individual needs. We provide:
- Convenient, short-term financing options.
- Flexible solutions customized to your business.
- Rapid approval turnaround.
How Construction Loan Financing Works
If you’re starting new construction, a short-term loan allows you to get started with the project and then eventually refinance it into a mortgage or pay it off by getting a larger loan later on. There are a variety of reasons that your company, like many businesses in the construction industry, may pursue financing for specific projects, including:
- Buying new equipment and materials: When you’re starting a new project, a construction loan can give you the finances to purchase the materials and new equipment you need.
- Financing new hires and employee training: As your business grows, investing in your employees will help increase your team’s efficiency and overall work quality. You can use construction loans to finance new hires and provide continuing education for current employees.
- Paying for unforeseen repair costs: If your business facility or one of your building projects unexpectedly sustains damage, a short-term construction loan can give you the financing you need for repairs.
Types of Financing Solutions for Construction Projects
As you consider your construction financing options, keep in mind that lenders will be looking for certain criteria, such as a detailed description of the project and your credit history and FICO score. They usually require a 20% to 25% down payment for construction loans, so you’ll want to ensure that you have assets available to cover the initial payment.
There are numerous construction financing solutions available, so assess what works best for your project:
- Construction-to-permanent: Choose this option to get a short-term loan for construction and then eventually transition it to a traditional mortgage.
- Construction-only: Within a set, usually brief period, this option gives you a short-term loan to cover building expenses.
- Owner-builder: This type of loan allows a licensed builder to also serve as the borrower.
Finance Your Construction Project With SCG
At SCG, we make getting the right financing for your construction project simpler for you. Whether you’re looking to finance facility upgrades, new equipment, employee training or another business need, we’re here to help make your business goals reality.
Fill out our free instant quote form today to discover more about how we can help you throughout the financing process.
