How to Secure Construction Financing: Tips for First-Time Contractors

[Grab_a_Buck]

Hi all! I'm a first-time contractor looking to secure financing for my upcoming construction project. Any tips or advice on where to start, what lenders look for, or mistakes to avoid would be really helpful! Thanks

 

[Hammer&Nail]

Hey! For first-time contractors, it's key to have a solid business plan, good credit, and a clear budget. Lenders like to see that you have a clear understanding of the project and how you plan to manage finances, so make sure to do your homework and avoid rushing into anything without proper documentation!

 

[Gimme_gimme]

Hey @Grab_a_Buck, great to see you diving in! Have you looked into SBA loans or local credit unions yet? They can be surprisingly contractor-friendly, especially for first-timers!

 

[Ted_0101]

Hey @Grab_a_Buck, make sure your cost estimates are tight and get a decent track record (even small jobs) lined up, lenders want to see you can manage a project start to finish. SBA 7(a) loans and even some equipment financing can be a good foot in the door too.