Smart Financing Solutions for General Contractors and Construction Companies
Building Success
The construction and general contracting industry is a crucial driver of economic growth, projected to grow to $14.4 trillion globally by 2030. In the U.S., this industry alone generates more than $1.4 trillion annually, fueling infrastructure development and creating jobs. Whether you’re a general contractor managing multiple builds or a specialized construction company, having access to the right capital is essential. From securing materials and labor to covering upfront project costs and mobilization, maintaining a steady flow of financing is vital to keep projects on track.
At Haro, we provide customized debt and equity financing solutions that meet the unique needs of construction and general contracting businesses. Whether you’re starting a new project or scaling your operations, we have the financial tools to ensure your business continues to build successfully.
Debt Financing for Construction and General Contracting Companies:
Asset-Based Loans
Construction companies often have valuable assets such as heavy machinery, equipment, or real estate. Asset-based loans allow you to leverage these assets to secure financing. By borrowing against your equipment or property, you can unlock the capital needed for immediate working capital, project expansions, or operational improvements.
SBA Loans
SBA 7(a) and SBA 504 loans offer affordable financing options for small to mid-sized construction businesses. The SBA 7(a) program provides working capital for day-to-day operations, equipment purchases, or debt refinancing, while SBA 504 loans are ideal for larger expenditures like buying property, equipment, or new construction facilities. Both options offer competitive interest rates and favorable terms, making them ideal for long-term projects.
Lines of Credit
In the unpredictable world of construction, cash flow can vary significantly depending on project timelines and payment schedules. A line of credit offers flexibility by giving you access to funds when you need them, whether for payroll, materials, or emergency repairs. You only pay interest on the amount you use, making it a smart option for bridging cash flow gaps.
Term Loans
Term loans are perfect for contractors looking to finance large projects, acquire new equipment, or expand operations. With fixed monthly payments and defined terms, you can plan your finances with certainty, ensuring that your business has the resources to take on bigger and more profitable projects without sacrificing stability.
Equipment Financing
Construction relies heavily on machinery and vehicles, from bulldozers to excavators. Equipment financing allows you to lease or purchase essential equipment without depleting your working capital. Because the equipment itself serves as collateral, this option often comes with more favorable rates, helping you grow your fleet or upgrade existing tools while maintaining cash flow.
Invoice Factoring
Long payment cycles are common in construction, where clients may take 30, 60, or even 90 days to pay. Invoice factoring lets you turn unpaid invoices into immediate cash by selling them to a factoring company. This way, you can maintain steady cash flow for payroll, materials, or new project bids without waiting on slow client payments.
Mobilization Financing
Before any construction project can start, contractors often need capital to cover upfront costs such as securing permits, purchasing materials, and setting up the job site. Mobilization financing provides quick access to funds for these pre-construction needs, helping you avoid cash flow bottlenecks and keep your projects moving.
Equity Financing for Construction and General Contracting Companies:
Equity financing is an effective solution for construction companies looking to scale, streamline operations, or prepare for ownership transitions. Haro connects construction businesses with strategic investors and equity partners who understand the industry’s challenges and opportunities. If you’re planning a business exit, Haro ensures you connect with buyers who appreciate the unique value of your company, ensuring a smooth transition and the continued success of your business.
We also assist construction companies with divestitures, allowing you to sell off non-core assets or divisions to focus on your core business or reinvest capital into growth. For those considering strategic mergers, Haro matches you with partners that align with your business goals, helping you expand into new markets, gain access to new technology, or enhance your operational capabilities. Additionally, growth equity provides the capital needed to accelerate your business’s expansion, whether it’s upgrading equipment, entering new markets, or hiring skilled labor. Our network of private equity investors offers not just funding but also strategic expertise to drive long-term success in your construction business.
HARO for Construction and General Contracting Companies:
Debt and equity financing can be powerful tools for construction and general contracting companies, providing access to capital for specific projects or business needs. By understanding the benefits and drawbacks of each financing option, construction and general contracting companies can make informed decisions about their financing strategy and position themselves for long-term success.
Haro knows the unique challenges faced by construction and general contracting businesses, from cash flow management to long project cycles. Our tailored debt and equity financing options are built around your business goals—whether you need quick access to working capital or are planning for long-term growth. With access to a vast network of financial partners and investors, Haro ensures that your construction business has the capital it needs to succeed.
Don’t let capital challenges delay your next project. Apply today and secure the financing your construction or general contracting business needs to grow, expand, and complete projects on time. Click below to get started!