Construction Company Bookkeeping For Contractors All Across The USA Including Alaska And Hawaii

Utilizing The Power Of Financial Modeling In The Construction Industry

Posted by Sharie DeHart on Fri, May 31, 2024

In the ever-evolving world of construction, financial modeling is a game-changer. It drives intelligent decision-making, minimizes risks, and ensures the revenue health of projects. Crafting precise and insightful financial models is a valuable tool for construction companies. It offers a panoramic view of the asset landscape and enables proactive planning and strategic management.

Financial models are invaluable tools designed to help you understand and protect your business's economic health. By simulating different scenarios and examining potential outcomes based on various inputs, such as sales growth, margins, and cash flow, these models provide a comprehensive picture that aids in informed decisions.

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Topics: fully burdened labor costs for construction worker, Financing Secrets Revealed, finance, Contractor Guidance, LMOS, Financial Modeling

Why Banks Won't Lend Money To Your Construction Business

Posted by Sharie DeHart on Fri, Oct 06, 2023

Getting approved for a business loan or line of credit is more complicated than qualifying for a personal loan. Small construction business owners must be adequately prepared to meet with a lender to present their business in the best possible light and ready for the money they need.

Think of all the times:

You loaned money to a friend or relative
Provided labor and materials for somebody's home or business without a deposit check
Did change order work that you never got paid for doing and never will
Gave a subcontractor/employee an advance on their paycheck, and you never got paid back

Multiply that by 100,000, and you will understand why banks seem so tight-fisted about loaning money.

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Topics: Cash Flow, Bookkeeping, Contractor Cash Flow Problems, Financing Secrets Revealed, Banking

Ten Little Things Hindering You From Getting Loans For Your Contracting Company

Posted by Randal DeHart on Fri, Apr 01, 2016

Do You Feel Like The System Is Rigged To Keep You From

Getting Financing For Your Construction Company?

Well, it is! There I said and I stand by it 100%. In most cases it's not your fault! The problem is you using painting a word picture to show how well your Construction Company is doing and describing all the new and exciting projects you are bidding on and expect to get while your Financial Reports are telling the banker or lender the exact opposite!

Prior to the 1960's Contractors and Bankers had a personal one-on-one relationship. They got to know you, like you and trust you which made getting a loan fast and easy. Then starting in the 1960's lenders started using The RMA more than ever before to influence their decisions.

What you don't know about business is 100X worse than what you know about doing the work you love doing so very much.

Being Unaware Of The Rules Of Business Causes Many Contractors To Believe:

Working Harder Will Solve Any Problem...
Staying In Business Long Enough Means They Will Win...
That One Good Job Will Fix All Of My Cash Flow Problems...
Explain Their Situation To All Of The Bankers, Suppliers, Lenders...

In the end what you don't know can slowly and painfully drag you and your Construction Company into a deep hole of debt, discouragement, depression and despair long after you have run out of time, money and energy.

"If You Know The Answers The Questions Will Not Bother You" - Randalism

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Topics: Financing Secrets Revealed, Contractor Lines Of Credit, Construction Loans, Loans For Contractors