Short Term Construction Loan Helps Builder Tackle Larger Projects

Great opportunities come to all, and the secret of success in life is to be ready to grasp them when they arrive. – L. Charley

Construction Company Needs Fast Funding to Capture Opportunity

Four years ago, WCP Financial was contacted by a builder that needed a short term construction loan in order to take on a large project. Winning larger projects is difficult for construction companies that don’t have similarly-sized jobs in their project portfolios.  The capital requirements of larger jobs are also very often prohibitive for small businesses and form a barrier that is difficult to navigate.  After 16 years in business, the owner knew that he could finally take his business to the next level if he could get the funding to take on the job.  While the builder had significant receivables, many of them were 60 to 120 days outstanding.  In the meantime, the business had expenses it needed to pay right away in order to get the new project underway.  The business had been working with the same bank for over 10 years, however, after weeks of delays and waiting for options, time was running out and it needed to look for capital elsewhere.  By the time the construction company owner reached out to WCP Financial it was only days away from giving notice that the firm would not be able to start the job.

Sutton’s Law Does Not Apply When Your Business Needs a Fast Loan

Sutton’s Law gets its name from Willie Sutton, an infamous and prolific criminal, responsible for stealing approximately two million dollars during multiple bank robberies.  When Sutton was asked why he robbed banks, he replied, “because that’s where the money is.”   Sutton’s Law dictates that one should begin a search for something (dollars in Sutton’s case) in the places where it’s most likely to be found – before searching in less likely places.  Where are we going with this?  When small businesses need capital they most often follow Sutton’s Law and go to their bank.  Why, because that’s where the money is and every business has a banking relationship.  While both of those things may be true, neither of them factor in risk.  Your local bank, especially when it’s a branch of a larger bank, typically only offers lower-risk loans that require long processing and strictly followed underwriting procedures.  The number of years your business has had an account with the bank matters little if at all.  When it seems so obvious that a small business should be able to satisfy its capital requirements from its long-term bank, discovering that it can’t, can be a frustrating and rude awakening.  The lesson is tougher still when the business is on a tight schedule, has just wasted time with its bank, and now has to look elsewhere for funding.  When the construction company owner contacted WCP Financial, he had just learned this hard lesson.

WCP Financial Short Term Construction Loan Funds in Less Than 24 Hrs.

Fortunately, WCP Financial had/has many fast funding options. Given the urgency of the situation, WCP immediately assigned a senior team to help solve the builder’s capital requirements.  Right away, WCP Financial presented the builder with a number of short term construction loan options that would satisfy the cash requirements necessary to pay down the company’s expenses and ramp up its operations in order to take on the large project.  The builder selected the best short-term loan for its needs and WCP Financial was able to provide the funding needed by the construction company in less than 24 hours!

As a result, the builder was able to capture the large project opportunity, leverage it to continue winning large projects, and successfully grew its business more in the last four years than it had in the previous 16.  Since then, the company has used WCP Financial for many additional loans ranging from $60K – $200K and totaling over $1M in funding.

Start a Business Relationship With WCP Financial

Relationships matter!  Few would argue with this frequently spoken sentiment.  When it comes to financing your business, it’s more accurate to point out that some relationships matter more than others.  All businesses need banking services and the relationship between a small business and its bank is important. Just remember, when your business needs capital fast in order to capture an opportunity, it’s not likely that your bank will be able to help.  Sutton’s Law does not apply!  When a near-term business-transforming opportunity appears in front of your high-potential business and you need fast capital, contact WCP Financial and we’ll help you seize it.