Monetary funds and cash, in general, are the driving force behind any construction project. All construction projects depend on the budget reserved for that project and used for purchasing supplies. Especially in times of COVID-19 when numerous projects are being shut down, delayed, and postponed, contractors need to be able to collect and borrow money. There are several ways in which construction companies can acquire financial stability even in times of pandemics and skittishness.
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Maximizing Cash with Collecting Due
Many contractors with smaller projects usually don’t have issues with collecting payments, especially in cases where there is a great customer relationship. Some contractors, usually those running bigger projects, have no problem with waiting on the past due payments. However, in times of uncertainties and fear of financial turmoil, getting paid on time might be a “lifesaver” for many companies. One of the viable ways of making sure that all payments will arrive in time is to use lien. Lien can make a warranty for contractors, assuring that they will get the payment. Some contractors do not qualify for a lien, which is why it is important to check the status of requirements for getting a lien.
Credit Lines and Lenders
Extending credit and loans in times of financial uncertainty shouldn’t be difficult for companies that have great credit records with banks and financial institutions. Many companies have managed to postpone their credit payments through moratorium due to the halt caused by COVID-19. In case construction companies are interested in taking loans during the times of pandemics, lenders may provide low-interest rates on fewer monthly payments. Contractors may also talk to their banks to extend their credit lines during the pandemics to be able to meet all financial requirements and obligations to keep the business running.
Photo by Etienne Martin on Unsplash
