When your company has some major construction projects on schedule in the near future, securing the right financing may be a more pressing concern than ever before. Even if you’re in a time crunch and have to get backing as quickly as possible, it’s still important to make sure your commercial loan fits your wants and needs, rather than simply springing for the first construction loans you come across. If you’re worried that a detailed search process will take up too much of your business’s time, energy, or resources, try this three-step plan instead to identify the right commercial construction loan for your company’s near-term building projects.

1. Determine the Areas Your Loan Money Will Have To Be Spent On

Applying for too large of an amount can lead your business straight into serious financial issues and even bankruptcy down the road. Before you rush into applying for loans, determine first the precise areas where you would spend that loan money. Common building expenses often include:

• Labor and hiring efforts
• Parts and raw materials
• Equipment rentals or purchases
• Property purchases
• Administrative fees
• Commercial vehicle leases or purchases

2. Loans Could Help You Get Started on Your Company Projects Without Going Bankrupt

Consider that a construction loan could help your company speed up your construction schedule by allowing you to start efficiently. Time spent researching loans could pay off by helping you:

• Avoid having to pay fees in full before starting the project
• Improve company cash flow for the duration of the project
• Prevent scenarios such as bankruptcy by signing on to manageable monthly loan payment amounts

3. You and Your Lender Could Jointly Determine a Repayment Schedule

If your main concern when searching for a loan is not being able to meet monthly payment requirements, search for a lender who’s willing to work with you and create a customized repayment schedule. For example, you may be able to lock in:

• A ten-year repayment term
• Monthly or biannual payments
• Payments are made only once the company completes certain phases of the project or hits certain milestones

Even if your business boasts years or perhaps decades of experience building various types of structures, narrowing down top options for construction loans and applying to ideal financing avenues can still present a challenge. The good news is that this three-step plan could shorten the whole process and help your company find suitable financing even in a significant time crunch. If you have a building schedule deadline fast approaching on the company calendar and you need to find a loan right away, try these three steps to help finance the project efficiently.