Cash flow problems can stop a profitable job in its tracks in construction. Contractors don’t fail because they don’t have enough work; they fail when they don’t get paid on time. You have to buy materials ahead of time, pay crews every week, and problems with equipment can’t wait for slow bank approvals. That’s why more contractors are looking for same-day funding options that are made for the realities of construction work.
Getting money quickly can help you keep projects going and protect your profits, whether you’re taking on a last-minute job, making emergency repairs, or covering payroll between invoices. Here are some tried-and-true contractor loan tips that will help you get funding on the same day or within 24 hours without any delays.
How important it is for contractors to get money quickly
Construction companies have to work quickly and pay a lot of money up front. Unlike in many other fields, contractors often have to wait weeks or even months to get paid.
Job openings that come up at the last minute
You often need to act right away on emergency repairs, change orders, and rush projects. Contractors may have to turn down good jobs if they can’t get money quickly.
Costs that come up out of the blue
A job site can shut down right away if equipment breaks, vehicles need repairs, or materials run out. It can cost more to wait days for financing approval than to fix the problem itself.
Payroll and work obligations
No matter when clients pay their bills, workers expect to be paid on time. Delays in financing can make operations harder and lower crew morale.
Keeping the project on schedule
Funding that comes late means materials that come late, work that stops, and deadlines that are missed. All of these things can hurt a contractor’s reputation and future bids.
This is why construction companies today use funding options that are made just for them to get quick approvals and meet the needs of real job sites.
Tip #1: Get your paperwork ready ahead of time
Preparation is the first step to speed. Most of the time, contractors who get approvals on the same day have their paperwork ready before they apply.
To avoid delays in underwriting, get the following ready ahead of time:
- Recent bank statements for the business (usually 3 to 6 months)
- Basic business information, such as the EIN, the type of business, and how long it has been in business
- Contracts for active projects or bids that have been won
- Unpaid bills (if you are using invoice financing)
- Basic credit information when asked for
Alternative lenders work quickly, but if you don’t have all the papers, it can still take longer. When everything is in order, lenders can look at cash flow more quickly and make decisions in hours instead of days.
Lenders can easily see how much money a contractor is bringing in and how stable their business is, so they always qualify for fast construction funding.
Tip #2: Use revenue-based financing
Contractors often fail to get traditional bank loans because they focus on credit scores, collateral, and long approval times. That doesn’t always work for construction companies, which is where revenue-based financing comes in.
Revenue-based loans look at more than just your credit history; they also look at your actual cash flow and sales performance. This makes them perfect for contractors who:
- Make a lot of money each month
- See income changes with the seasons
- Have high costs of doing business
- Have good or getting better credit
ICG Funding is a lender that specializes in revenue-based financing for contractors. This means that they can approve loans with little paperwork and make decisions quickly.
Contractors can get approvals in hours instead of weeks, and they can get money in as little as 24 hours. This kind of loan is especially good for:
- Buying materials ahead of time
- Handling projects that are happening at the same time
- Filling in payroll gaps
- Covering short-term cash flow problems
The start of ICG Funding’s same-day contractor funding program shows that there is a growing need for construction financing that is faster and more flexible, based on how well a business is doing, not on strict bank rules.
Tip #3: Use invoice factoring to get cash right away
One of the hardest things for contractors to deal with when it comes to cash flow is having to wait 30 to 60 days for clients to pay. Invoice factoring is a great way to get money quickly when you need it.
Contractors can turn unpaid invoices into cash with invoice financing, sometimes on the same day.
How invoice factoring can help contractors:
- Gives you working capital right away, without having to wait for clients
- Doesn’t take on traditional loan debt
- Grows and shrinks with the size of the project
- Gets approvals faster than most other loan products
Invoice factoring is very helpful for contractors who work with businesses, property managers, or the government, where payments are often late.
Contractors can use invoice factoring for construction businesses to keep projects going and crews paid instead of stopping work while they wait to get paid.
Tip #4: Pick a lender who will make a decision the same day
Not all lenders are quick to give you money. A lot of companies say they can give you “fast funding,” but they still take days to approve loans or release money.
Choose a lender with the following when looking for same-day contractor funding:
- Easier underwriting
- Knowledge of the construction industry
- Approval criteria that can change
- Funding times that have been proven to be 24 to 48 hours
People know that ICG Funding makes decisions quickly and focuses on contractors when they underwrite. A lot of people get approved the same day, and when the paperwork is ready, the money is usually sent within 24 hours.
Clearly show that you need approval quickly during the application process to speed it up. Tell the lender why the money is needed quickly and how it will be used. Lenders who are used to financing construction projects know about these kinds of pressures and put urgent requests at the top of their list.
Get Money Today
Contractors no longer see same-day funding as a luxury; they see it as a need. You can get the money your business needs right when it needs it by getting your papers in order, using revenue-based financing, invoice factoring, and working with a lender that works quickly.
ICG Funding’s same-day contractor loan program lets contractors who are ready to move quickly apply for fast contractor funding.
If you get approved, you could get money in as little as 24 hours. This would help you buy materials, pay workers, deal with emergencies, and keep projects on track without having to wait for slow banks.
Get your contractor loan application in today and keep your business going.