Commercial construction subcontractors, manufacturers, and fabricators in Metro Detroit often face significant cash flow challenges at the start of new projects. Securing the necessary funds to cover initial expenses such as payroll, materials, and vendor payments can be daunting. The lag between project commencement and the receipt of payment for work completed can strain financial resources and hinder project progress. Traditional financing options may not provide the timely, upfront cash flow needed to overcome these hurdles.
Recognizing these challenges, LVRG Business Funding offers a specialized solution designed to address the unique needs of commercial construction subcontractors, manufacturers, and fabricators in Metro Detroit. Our Contract Backed Loans provide the essential working capital right at the beginning of a project. Unlike factoring solutions that offer cash flow on the backend, our approach ensures you have the funds upfront to kickstart your projects, ensuring smooth operations from day one.
Cash Flow Challenges in the Industry
Starting a new project involves significant upfront costs that can create a financial bottleneck for businesses. Commercial construction subcontractors, manufacturers, and fabricators need to invest in labor, materials, and equipment long before receiving payment for their services. This cash flow gap can lead to delayed projects, missed opportunities, and strained relationships with vendors and employees. The traditional financing methods often fall short in providing the immediate cash flow required to mobilize and execute new contracts effectively.
Moreover, the competitive nature of the construction and manufacturing industries means that businesses cannot afford delays or disruptions. Meeting project timelines and maintaining a steady workflow is crucial for reputation and future business opportunities. The need for a reliable, upfront cash flow solution becomes even more critical as businesses strive to grow and take on larger projects.
In Metro Detroit, these challenges are particularly pronounced due to the area's dynamic and competitive market. Commercial construction subcontractors, manufacturers, and fabricators need a robust financial strategy to ensure they can meet the demands of their projects and stay ahead of the competition. This is where Contract Backed Loans from LVRG Business Funding come into play.
A Solution Tailored to Your Needs
LVRG Business Funding's Contract Backed Loans address these cash flow challenges head-on. By offering upfront working capital, we enable commercial construction subcontractors, manufacturers, and fabricators to start their projects with confidence. Our funding solution ensures that you have the financial resources to cover initial expenses, maintain smooth operations, and focus on delivering quality results without the stress of cash flow shortages.
Our loan program gives commercial contractors an opportunity to secure the capital they need before the job even begins. Get and spend the money you need to do the job you were hired to do.
Benefits of Contract Backed Loans
Collateral: The collateral for the loan is the job contract itself.
Repayment Schedule: The repayment schedule is aligned with the project payment timeline.
Project-Specific Loan: The loan is specific to each project, keeping your project funded and moving forward.
Consistency: Change orders and delays do not change the interest rate or nature of the loan.
Credit Impact: Your personal credit isn’t affected.
Timely Funding: Best of all, you get the money when you need it most — before the work starts!
Stop worrying about how to make payroll, order materials, secure permits, and pay vendors. With our easy loan application, you can quickly get funded and get to work.
How It Works
Loan Amounts: Up to 20% of the contract value or 70% of the purchase order.
Application Process: Complete your application and submit the necessary supporting documents.
Funding Timeline: Receive your funds in as quickly as 5 business days.
Repayment Terms: Typically within 5 months, matching the timing of the first 2-3 pay applications for the project.
Simplified Path to Funding
Introduction Call: Start with a Contract Backed Loans introduction call.
Submit Application: Provide your application and financial documents.
Review: We will review your cash flow model and financing plan.
Documentation: Execute the loan documentation.
Funding Account: Your project funding account is opened.
Disbursement: Funds are disbursed to your account!
Qualifications for Funding
To qualify for our Contract Backed Loans, your business should meet the following criteria:
Gross Annual Revenue: $1M+
Business Bank Statements: 6 most recent statements
Financial Statements: Income statements and balance sheets for the prior 2 years
Year-to-Date Financials: YTD income statement and balance sheet
Tax Returns: Tax returns for the prior 2 years
Contract or Purchase Order: Copy of the contract or PO
Aging Reports: Accounts Receivable (AR) and Accounts Payable (AP) aging reports
Why Choose Our Contract Backed Loans?
Our Contract Backed Loans solution is more than just a loan. It is a reliable source of working capital designed to provide peace of mind and financial stability for your business. By securing the necessary funds upfront, you can confidently tackle new projects, ensure smooth operations, and drive your business growth.
Benefits of Contract Backed Loans for Metro Detroit Businesses
Upfront Cash Flow: Get the money you need when you need it most — before the work starts. This ensures that your projects get off to a strong start without financial stress.
Tailored Solutions: Each loan is customized to meet the specific needs of your project, providing flexibility and ensuring that your unique requirements are met.
Peace of Mind: With a reliable source of working capital, you can focus on delivering quality work and growing your business, without worrying about cash flow shortages.
Fast Funding: With a streamlined application process, you can receive your funds in as quickly as 5 business days, allowing you to start your projects without delay.
Flexible Repayment: The repayment schedule is aligned with your project’s payment timeline, ensuring that repayments are manageable and fit within your cash flow.
Partner with LVRG Business Funding
For commercial construction subcontractors, manufacturers, and fabricators in Metro Detroit, securing upfront working capital is crucial for project success and business growth. LVRG Business Funding’s Contract Backed Loans provide the financial stability you need to overcome cash flow challenges and start your projects with confidence.
By partnering with us, you gain access to a reliable source of working capital tailored to your specific needs. Our dedicated team works with you to develop a customized funding solution that aligns with your project timelines and business goals. Experience the peace of mind that comes with knowing your cash flow needs are met right from the start.
Conclusion
In the competitive industries of commercial construction, manufacturing, and fabrication in Metro Detroit, having a robust financial strategy is essential. LVRG Business Funding’s Contract Backed Loans offer a specialized solution to address the cash flow challenges faced by businesses in these sectors. By providing upfront working capital, we enable you to start your projects with confidence, ensuring smooth operations and long-term success.
Secure your project’s financial future with our Contract Backed Loans solutions and take the first step towards a brighter, more stable financial future. Contact LVRG Business Funding today to learn more and get started on your path to financial stability and project success.
Call (855) 998-5874 today to discuss your Contract Backed Loan options, or click below to get started.