Finance & Lending


07 20 2016

07 20 2016

4 Tips for Growing Your Construction Business

Responsible for building nearly $1 trillion worth of structures each year, the construction industry is an extremely competitive sector, with more than 650,000 employers overseeing more than 6 million employees, the Associated General Contractors of America reported. Further, between April 2015 and 2016, spending in the construction sector rose 4.5 percent, an increase that is no doubt cutting into profit margins and making it more difficult for firms in this industry to grow, according to the AGC.

Successfully growing a construction firm involves a multifaceted approach that includes techniques like upgrading technology, boosting working capital, hiring better workers or leasing equipment. Unfortunately, there can also be numerous obstacles to expanding a construction firm, from a lack of skilled labor to an inability to quickly scale operations. However, by implementing some of the tried-and-true tips and techniques listed, you can potentially expedite your construction company’s expansion.

By following these four tips, builder-owners and managers in the construction industry can potentially grow their companies in the coming months and years:


  1. Embrace technology

While many builder-owners and managers at construction firms keep their ears to the ground and their fingers to the pulse of their industry, there are still those in the sector who remain committed to antiquated methods of conducting business.

Cloud-based enterprise platforms can boost interdepartmental communications and break down the silos that would otherwise inhibit collaboration and data sharing. By moving all your processes to a cloud-based solution, you can also turn any work site into a mobile office, effectively eliminating unnecessary travel times and costs. Further, cloud-based networks reduce the amount of data entry needed to share this information, since all the records are kept in a single repository that’s accessible to every team member in real time.

When combined with the growing ubiquity of the Internet of Things – the sensors, transmitters and other data receivers connecting static devices – constructions firms that are unwilling or unable to make these technological upgrades will ultimately see their market share and profits take a hit.

With a small investment in new technologies, construction firms can see big savings.


  1. Attract the right talent

For any construction company to grow, additional staff members are needed to handle the increased workloads. According to the most recent data from Accordant Co and the AGC of America, 71 percent of construction firms surveyed anticipate adding more workers to their company in 2016. Six percent of respondents said they planned on cutting positions during the year.

In addition to nearly three-quarters of construction firms making plans to hire new individuals, the mass exodus of baby boomers from the workforce into retirement has created a dearth of experienced laborers. Without the best possible talent on the job, construction firms can easily see projects extend past deadlines and beyond budgets. Worse, hiring unskilled laborers to fill the gap can lead to the building of subpar structures.

Respondents to the Accordant survey suggested increasing base pay rates, offering bonuses and boosting contributions to employee benefits to recruit the most qualified team members. However, Accordant noted how these responses were nearly identical to what respondents said for the 2015. This means even after 12 months of raising pay rates, attracting the best talent will continue to be a major problem for the construction industry.

Thankfully, a working capital loan acts as a quick and easy way to get the money you need to entice the best possible employees.


  1. Utilize equipment leasing

Running a business is expensive. There are a host of costs and expenses that must be paid for regardless of whether any revenue is coming in. A good way to continue delivering high-quality construction offerings while simultaneously reducing overhead is taking advantage of the many benefits of construction equipment leasing.

Leasing equipment for the construction industry provides a wide range of ways for firms in this field to ensure they remain competitive and profitable. Leasing equipment eliminates the total upfront cost of the machinery needed to complete any construction job, thereby freeing up capital that can be invested elsewhere.

Best of all, most equipment leasing contracts let construction firms upgrade the machinery every year. This ensures your company has access to all the latest and greatest construction equipment available, letting you remain competitive in an increasingly crowded field.


  1. Obtain a working capital loan

Sometimes cutting overhead expenses can only take your construction firm so far, and additional funds are needed to help the company reach the next business milestone. If operational efficiencies are optimized, it can be time to obtain a working capital loan. Construction firms that partner with an alternative lender to tap into a working capital loan can immediately and easily gain access to a crucial influx of money. These funds can then be reinvested into the company for marketing, technology purchases or whatever immediate or long-term expenses are necessary for growing your construction business.


Find Out How Much Funding You Qualify For

Fields marked with an * are required
By clicking this button I agree to all terms and conditions.

Terms & Conditions

General Acceptance

Any applications submitted electronically shall have the same force and effect as if the application bore an inked original signature(s). The above information, together with any accompanying financial statements, schedules, or other materials, is submitted for the purpose of obtaining credit and is warranted to be true, correct, and complete.


US Patriot Act:

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person and business that seeks a business loan. What this means for you: When you apply for a loan, we will ask for your business name, address, and Tax Identification Number. We will also ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.


For Loan/Merchant Services:

The Merchant and Owner(s)/Officer(s) identified in the application (individually, an “Applicant”) each represents, acknowledges and agrees that (1) all information and documents provided to National Funding, Inc. (“NF”) including credit card processor statements are true, accurate and complete, (2) Applicant will immediately notify NF of any change in such information or financial condition, (3) Applicant authorizes NF to disclose all information and documents that NF may obtain including credit reports to other persons or entities (collectively, “Assignees”) that may be involved with or acquire commercial loans having daily repayment features and/or Merchant Cash Advance transactions, including without limitation the application therefor (collectively, “Transactions”) and each Assignee is authorized to use such information and documents, and share such information and documents with other Assignees, in connection with potential Transactions, (4) each Assignee will rely upon the accuracy and completeness of such information and documents, (5) NF, Assignees, and each of their representatives, successors, assigns and designees (collectively, “Recipients”) are authorized to request and receive any investigative reports, credit reports, statements from creditors or financial institutions, verification of information, or any other information that a Recipient deems necessary, (6) Applicant waives and releases any claims against Recipients and any information-providers arising from any act or omission relating to the requesting, receiving or release of information, and (7) each Owner/Officer represents that he or she is authorized to sign this form on behalf of Merchant.(8) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (9) this request is for business and not for consumer purposes.


For Equipment Services:

I hereby certify: (1) the information provided is true and correct, (2) you are hereby authorized to investigate all bank, credit, and trade references, and said references are hereby authorized to release any requested information to you or your nominee, (3) such authorization shall extend to obtaining personal credit profile in considering this application and subsequently for the purposes of update, renewal or extension of such credit or additional credit and for reviewing or collecting the resulting account, (4) this information may be transmitted by us to you and by you to underwriter(s) for the purpose of granting me credit, either electronically or manually, and that by submitting this application, I take full responsibility for transmission thereof, (5) I am over 18 years of age, (6) I acknowledge my rights under the Fair Credit Reporting Act, (7) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (8) this request is for business and not for consumer purposes.


Text Messaging:

By providing my wireless phone number to National Funding, Inc., I agree and acknowledge that National Funding, Inc. may send text and multimedia messages to my wireless phone number for any purpose. I agree that these text or multimedia messages may be regarding the products and/or services that I have previously purchased and products and/or services that National Funding, Inc. may market to me. I acknowledge that this consent may be removed at my request but that until such consent is revoked, I may receive text or multimedia messages from National Funding, Inc to my wireless phone number.

The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status or age (provided the applicant has the capacity to enter into the binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. If for any reason your application for business credit is denied, you have the right to a written statement of the specific reasons for the denial. To obtain the statement, please write to National Funding Inc., 9820 Towne Centre Drive, San Diego, California 92121. Funding amount and credit approval is subject to a full credit profile review.