Contractor financing is a process that helps builders improve cash flow by giving them earlier access to capital or allowing them to defer payment for expenses.
Because construction is a credit-heavy industry, the collection cycle can take weeks or months. Yet contractors pay for labor, materials, equipment, and other inputs well before they collect the funds necessary to cover the cost. You can also get more information about Axximum funding through various online resources.
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Home improvement financing
Home improvement financing is actually a type of construction loan where the contractor acts as the intermediary between the lender and the homeowner.
While the homeowner must apply for the financing, the lender will typically pay the contractor upfront for the job. The homeowner repays the loan to the financing company directly, over time.
Bank line of credit
A line of credit is a bank account you can draw money from as you need it. You can withdraw and pay back the money as many times as you want, and interest only accrues on the amount that you withdraw.
A line of credit can either be secured or unsecured. An unsecured line of credit will carry a higher interest rate because it’s not guaranteed by any collateral.
A secured line of credit typically comes with a higher credit limit and a lower interest rate because the lender can seize your assets if you don’t pay back the money you withdraw.