Excavation Financing up to $750,000
Excavation services are essential for everything from site preparation for new construction to landscaping. Merchant Cash Advance can approve up to $750,000 in excavation business loans and funding for those who qualify within 48 hours of application.
Are you looking to expand your excavation or construction business? If so, you’re probably wondering how you will get sufficient funding to cover your expenses. The list of expenses small business owners build when starting a new excavation business can be lengthy, so it’s normal to want to know your financing options within the construction industry.
When you start your new excavation business, you’ll need the right equipment to get the best results. More and better equipment lets you expand your business offerings, which can lead to a direct increase in revenue. Not to mention, you’ll want well-trained staff and the best facilities.
Fortunately, excavation business loans and other types of financing can help! A loan for your business can help you meet new consumer demands and help your excavation business grow.
What Are Excavation Business Loans
Excavation business loans are intended to help pay for heavy equipment, including bulldozers, backhoes, cranes, and other construction machinery, along with other business expenses for excavation and construction companies.
Despite the name, excavation business loans aren’t just for construction or excavation equipment. The possibilities are pretty broad, encompassing every aspect of your business. So, don’t write off excavation loans if you’re simply looking to update your facilities. An excavation loan could be exactly what you need to give your business a boost.
Uses for Excavation Business Loans
Excavation business loans come in many forms. Each type of financing has benefits and drawbacks, but not all loans work for every scenario. Here are a few examples of what you can use your excavation business loan for.
- Purchase new equipment
- Replace or repair equipment
- Update facilities
- Stay afloat during downtime or in the off-season
- Cover unexpected expenses
- Hire new staff
- Expand service options
- Staff training and development
When you start considering applying for a loan, take a look at your needs and wants. What do you want to accomplish? What tools will allow you to reach those goals? There’s very little you won’t be able to do to improve your business with the right funding.
Funding Options Available to Excavation Companies
Excavation companies often have varied lending needs. Secured business loans, merchant cash advances, and equipment financing are three of the most common funding options available for companies.
Secured business loans are backed, or secured, by your assets. Assets can include your commercial property, excavation equipment, savings, or inventory, if applicable. If you fail to repay small business loans, the lender can lay claim to the collateral. Secured small business loans are ideal for startups or borrowers with poor credit.
Merchant cash advances, or MCAs, are financing backed by anticipated income. A cash advance is a purchase of sales, not a loan. As you bring in revenue, a portion of your sales will go directly to the financier. MCAs typically have flexible repayment terms, require no collateral, and quickly put cash in borrowers’ hands.
Equipment financing is an excellent option if you need to update or upgrade your existing excavation equipment. Financing gives your excavation company more flexibility with what type of equipment you can purchase. You can borrow as little or as much as you need. You also won’t have to put up collateral that you own. Instead, the equipment will act as collateral.
Tips for Excavating Companies Trying to Qualify for Financing
No matter what type of financing you’re applying for (construction business loans, a small business loan, business credit cards, SBA loans, Merchant Cash Advances, construction equipment loan, equipment leasing, etc.) you need to present yourself as an attractive loan candidate.
Everyone knows a good credit score and collateral are beneficial when applying for a loan. But lenders want to see a bigger picture highlighting why you’re an attractive borrower. So here are a few tips that could help you secure financing.
First, have a plan. Draft out a detailed outline of your intentions and present it when you sit down to speak with a lender. A bank will want to see that you have a clear path forward with their money. When you can lay out exactly what you plan to purchase, lenders can feel more confident that you’ll be able to repay.
A few examples of things a lender will want to see in your business plan are:
- Property purchases
- Employee organizational chart
- Insurance costs
- Detailed list of equipment costs
- General marketing plan
- Financial projections
- Working capital
Next, do your research. Ensure you understand the different types of loans, how they can help you, and how the lending process works. Then, ensure you have everything you need to apply for your loan. When you know which loan will suit you best, you can prevent a lot of back-and-forth with lenders.
Third, have a resume of sorts to present to lenders. A business plan is an excellent first step. But make sure your lender can see what you’ve already done. Show them your business’s success so they can better understand your qualifications and future.
Finally, have all your paperwork in place to streamline the process. A good rule of thumb is that you can never be too prepared. The type of documentation a potential lender might want to see could include your business plan, financial records, tax forms, credit history, and other legal documents.
Benefits of Excavation Business Financing
As someone who’s worked in excavation or construction, you know how pricey things like purchasing equipment, facilities, and wages can get. You might even question if business financing is truly in your best interest. But, although there might be some downsides to taking on business debt, there are plenty of benefits.
A steady cash flow is one of the most significant benefits of excavation business financing or small business construction loans. Cash flow is necessary to keep afloat when your business is growing or going through a rough patch. Since excavation equipment comes at a high cost, financing is often the best way to ensure progress.
Another benefit of excavation business financing is purchasing brand new equipment. In some instances, pre-owned equipment might be acceptable. But to maximize your business’ offerings, you’ll want the latest equipment with no previous owners. You’ll also get any warranties that come with new equipment, helping to ensure its longevity.
A third benefit is that a business loan for an excavation or construction company typically has lower interest rates than personal loans.
So, while it might be tempting to get a personal loan if you’re only just starting out, hold that thought. Instead, look into excavation business loans and financing to see what rates your lender can give you. You might be able to get more funding at a lower rate. Not to mention, it’ll help your business build credit.
Frequently Asked Questions on Excavation Business Loans
Excavation business loans tend to sound more complex than they are. But when it comes down to it, they follow most of the same rules as a traditional business or personal loan. So, if you still want to know more, here are the answers to some common questions about excavation business loans.
There are so many aspects that contribute to the cost of starting an excavation business. Property, taxes, equipment, permits, salaries, inspections, and other fees all factor into your final price. Equipment alone can cost tens to hundreds of thousands of dollars, not to mention vehicles to haul heavy equipment. Therefore, before applying for your loan, price out what you’ll need so you’ll know what to ask for when you apply for your loan.
Most small business loans require the borrower to put up collateral in exchange for funding. Sometimes, collateral might be something you already own, such as property or equipment.
In other cases, the equipment you plan to buy with the loan will become the collateral. If you default on your loan, the lender will collect collateral in place of repayment. The only exception is if you choose a merchant cash advance.
Bad credit doesn’t automatically exclude you from getting an excavation business loan, but it can make it more difficult. You can use the tips listed above to better your excavating company in the eyes of a lender. Or, instead of a traditional loan, you could consider taking out a business line of credit or merchant cash advance (minimum credit score of 500) to cover your expenses.
Merchant Cash Advances tend to get approved much more quickly than traditional loans. In many cases, you can expect approval within a few hours. Then, you’ll have your funding in 1-2 days, allowing you to work on business expansion immediately.
An excavation and construction business loan from a traditional bank lender can sometimes take between three weeks and three months to receive funding if approved.
Many borrowers’ primary concern is whether their credit score is sufficient for a loan. It’s a valid concern, considering most banks want a personal credit score of 720 or aboveor a business credit score of 75 or higher.
However, for some people, it could take years before reaching a score that high. Fortunately, you can get a Merchant Cash Advance with a score as low as 500. If you’re struggling to get a loan or line of credit, a Merchant Cash Advance is the way to go.
Excavation Business Loans Can Grow Your Business
Excavation business loans and equipment financing and leasing are excellent tools to help you grow your business. A loan or cash advance can give you the boost you need to expand your offerings, increase staff, or purchase new equipment. Take time to learn your options and format a business plan. Then, you’ll be on your way to securing funding.
Does Your Business Need Funding Today?
There’s no fee or obligation, and it won’t impact your credit.
$5,000 – $1,000,000
Talk to a rep at (855) 433-8641
Mon – Fri | 9:00am – 8:00pm