5 Ways to Utilize Construction Business Loans

From spreading the risk to upgrading your tools, here are five answers to the question, “Can you share some ways a construction company can best utilize its business loans?”

  • Spread the Risk Between Operations
  • Expand to Different States or Cities
  • Place in Marketing Spend
  • Make a Contingency Fund for Permits
  • Upgrade Your Equipment and Tech

 

Spread the Risk Between Operations

Construction is a high-risk,-high-reward industry, and when a company relies on business loans to propel its growth, it makes sense to tread even more carefully. 

The best approach is to diversify operations and investment in as many business segments as possible to spread the risk. From small redevelopment projects to even mega projects, the range could include just about anything that fits the bill. 

But as long as you spread the net wide, the chances of losses are reduced. Moreover, this approach will also give the company fresh insight into the sector that holds the most promise for its size and capacity, through hands-on experience.

Riley Beam, Managing Attorney, Douglas R. Beam, P.A.

Expand to Different States or Cities

A construction company can best use its business loans by expanding into different locations. This will allow the company to take on more projects and increase its income. 

Additionally, expanding to different states will also allow the company to build a more diverse client base. This will help the team weather any downturns in the economy and protect profits. 

Finally, expanding to different states will also allow the company to bring in new talent and address any skills gaps. This will help everyone grow and thrive in the future.

Jim Campbell, CEO, Campbell Online Media

 

Place in Marketing Spend

Marketing is a great way for a construction company to best use its business loans.
Construction companies usually rely on traditional methods to gain new clients, like word-of-mouth and referrals, but these can be difficult to sustain over time.

To really grow and scale their business and attract new clients, they need to put in place a solid marketing strategy that includes advertising, social media marketing, and content creation. This will allow them to reach a wider audience and generate more leads.

Tiffany Homan, COO, Texas Divorce Laws

 

Make a Contingency Fund for Permits

Permits are one expense best covered by a business loan. Depending on the neighborhood or municipality, the permitting process may not be cut and dry at the start, so having a contingency fund for permits is always a good idea. 

Unexpected permit issues can pop up overnight if something goes wrong, or needs to be adjusted significantly, and they can quickly become a real strain on finances.

Annu Daniel, CEO, Elohim Company

 

Upgrade Your Equipment and Tech

A construction company can best use its business loans by using the funds to invest in new equipment and technology that can help improve its efficiency and productivity. 

This could include things like excavators, bulldozers, dump trucks, and other heavy machinery, as well as software and tools that can help with project management, scheduling, and tracking.

By investing in these types of assets, the construction company can increase its capacity to take on larger and more complex projects, which can help them generate more revenue and grow their business

Jake Smith, Managing Director, Absolute Reg LTD