Prepare for Winter With a Construction Loan | Fora Financial Blog
How to Use Construction Loans to Prepare for Winter Months
November 04, 2016

How to Use Construction Loans to Prepare for Winter Months

The winter months can present challenges for construction businesses, such as cold temperatures, inclement weather and less daylight. If you’re located in the northeast like us, then you’re likely bracing for the winter weather.

Running a construction business somewhere that experiences the colder temperatures requires preparation. Luckily, if you’re located in an area that doesn’t experience a harsh winter, this post won’t apply to you!

With winter quickly approaching, it might be an opportune time for your construction business to apply for working capital from a lender. Before the winter construction season commences, use working capital to finish up last minute jobs and prepare for the spring. In this post, we’ll explain how you can utilize construction business loans to make it through the winter months!

1. Use money for winter projects, while saving for spring too – Don’t lose momentum during the winter months! By using working capital from a lender, your business will have money to take on projects that you might have missed out on last year. Even if it is a slow season, you’ll still be able to take advantage of any new opportunities you are offered.

In addition, if there are not as many job proposals coming your business’s way during the winter, consider money to start bigger projects once spring arrives. During the winter construction season, you can apply for working capital, and use it to keep your business afloat until the spring arrives. Then, you’ll have money to start off the next season strong!

2. Purchase winter equipment – During the winter months, your business might need plows to clear away snow, or other tools to help with the inconveniences this season presents. Also, it might be a good time to pay for updates to the consistent equipment that you use year-round. This way, the equipment will be ready when the warmer weather returns, and you’re receiving more job offers.

3. Market your business – Since projects may not be as frequent during the winter, it is important to invest in marketing strategies that will help you gain additional business. Ensure that your customers don’t forget about you during the off season, by using construction business loans to pay for marketing efforts. It is important to still promote your business’s brand, so that you remain visible to your community!

4. Pay employees – If you plan on completing jobs during the winter, you’ll need to have enough money to pay your employees, likely at the middle and end of a job. Since the construction industry’s paying schedule often operates this way, you’ll need to review your budget, and see if you have enough money to pay employees and afford other necessary costs. Using construction financing to cover these costs will help you afford all of these

5. Start working on new initiatives – During the winter season, begin brainstorming new construction business ideas for the next year. These could be marketing campaigns you’d like to try, or new services you could offer. These plans may require additional financing, which is why if you’re serious about applying for a business loan, you can begin making these ideas a reality.

6. Pay bills – Don’t fall behind on rent payments and other bills; you’ll need to ensure that you have enough money to pay your bills during the winter months. Consider pursuing construction business loans for this area.

Make sure that your business can survive the winter construction season by applying for additional working capital. It can be stressful to have less jobs to complete during the winter months, since your sales might take a dip. By applying for a business loan from a lender, you’ll have peace of mind that your construction business’s finances won’t be in danger. Good luck to all of the construction companies as winter approaches – we hope that you make the best of it!

Fora Financial

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

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Fora Financial is a working capital provider to small business owners nationwide. In addition, the Fora Financial team provides educational information to the small business community through their blog, which covers topics such as business financing, marketing, technology, and much more. If you’d like to see a topic covered on the Fora Financial blog, or want to submit a guest post, please email us at [email protected].