Why Access to Capital is Crucial for a Construction Business

Why is having capital so important for a construction business?

There are two main reasons.

Number 1 is it is much more difficult to grow and expand your construction business without the capital to do so.

Sure, you could dip into your cashflow if you want. But is this actually feasible?

Not usually and it’s usually not a good idea given the amount of resources it takes to grow a construction business.

Number 2 is delayed owner payments.

Delayed payments by owners can stretch working capital and drive a need to finance these payment delays with debt, should the liquidity contained on the balance sheet not be sufficient.

So having a “financial cushion” to handle these types of situations is really important.

These are things many business owners don’t think about until it’s already too late.

This is why having capital ready to deploy, even if you don’t use it right away, is so important.

It can not only allow you to expand your business when you’re ready, but it also gives you the resources you need to weather the unexpected challenges that are guaranteed to happen at some point.

Get qualified for business funding today by visiting our funding platform ROK Financial here.