How to Use Working Capital for your Construction Business

How to Use Working Capital for your Construction Business

As a business owner, you know how important it is to have the right equipment and a well-trained staff on hand. The problem is it can be difficult to afford the best of the best when you’re just getting started or when the season begins to slow. So how do you keep yourself afloat? The answer — a working capital loan. Any business can benefit from a working capital loan, and construction companies are no exception. Read on for six ways a working capital loan can benefit your construction business and set you up for success.

Repair Malfunctioning Equipment

Maintenance checks provide information on the status of key equipment and tools used every day on the job. A business loan can be used to initiate the repair process, reducing the need to buy new equipment and preventing you from showing up to a job only to find that your tools aren’t working.

Buy New Equipment

If you’ve already tried the repair route and there’s nothing that can be done, you’re going to need to replace your equipment. There may also come a time when new tools and equipment are required to complete a job, and it can lead to delays if those tools are not available on site. Working capital will allow you to invest in new equipment and save money on job delays, as well as avoid risks associated with out-of-date tools and poorly functioning equipment.

Protect Health and Safety of Staff

Construction companies are assigned significant risk by insurance providers. Keeping your employees safe is of the utmost priority, and you would do well to invest in the health and safety of your employees. Some extra cash could help you get the adequate insurance you need to protect employees from onsite injuries.

Expand Your Services

Service is at the core of any construction firm’s success, and a working capital loan can help the business expand its services. You can advance your market share through service expansion and secure segment leadership. When clients are introduced to new services, they have a reason to contract with your company again. Diversifying your offerings can definitely improve your bottom line and is a great way for you to stay competitive in the industry.

If you've been steadily growing over the last year, you probably need more staff to keep up with all of the influx of work. A working capital loan could help you hire some new staff and offer them a competitive wage. This, in turn, will help you turn more profits because you're able to keep up with the demand from clients.

Hire New Workers

If you’ve been steadily growing over the last year, you probably need more staff to keep up with all of the influx of work. A working capital loan could help you hire some new staff and offer them a competitive wage. This, in turn, will help you turn more profits because you’re able to keep up with the demand from clients.

Invest in Professional Marketing and Branding

You want people to know who you are so that you can bring in new business, and that’s not going to happen without a top-notch brand identity. This is a great place to direct some extra funds — a good logo and brand identity can go a long way to ensuring clients notice and remember you.

Professional advertising campaigns are an investment. Avoid throwing your money away on a DIY marketing scheme that will only end up costing money. A business loan enables a company to hire professional marketing pros who are knowledgeable about creating industry reach.

If your construction business could use a little extra cash, give MY Company Funding a call and find out if a working capital loan is right for you. Our short-term working capital loans can give you that boost you need to take your business to the next level. All you need is an application and bank statements to get started.