How To Solve Funding Challenges In Banking And Finance Sector?
                     HOW TO SOLVE FUNDING 
CHALLENGES IN 
CONSTRUCTION FINANCE?
Introduction
• Construction is a huge business within itself, with hundreds of 
employees lined up to perform a certain duty to material cost and 
damage restoration. 
• Every small, as well as big matters associated, require proper financing. 
Securing construction finance is becoming tougher day by day with the 
increase in labor cost and stringent finance policies.
• The cost, though, is significantly balanced by using construction 
recruitment agencies for hiring. It is still not a great, fully grown idea 
to deepen all the sources of finance through 
banking and finance recruitment agencies.
Point To Consider When Construction Finances To Explore
1.   Asset Financing
●  Leasing
• Leasing does not require you to pay for the materials and equipment if the construction all at one go. 
• A company would be required to use multiple leasing of the equipment to satirist more demand of the construction.
• Leasing is a straightforward process and is often used by companies that do not need the equipment permanently. 
• This technique is used to lease expensive equipment which does not have much use and can be easily borrowed for some 
amount of money rather than making a permanent purchase.
●  Hire Purchase
• If your company is involved in year-round construction, then hire purchase is one of the best ways to finance your 
construction.
• This works as installment buying wherein the company gets the full hold over the equipment once all the payments 
are made over a given period.
2.   Unsecured Loans
• Unsecured loans are typically used by small businesses that do not require a high sum of money to carry out 
the work. 
• The loan lies in the range of $25,000 to $100,000. A construction company can avail of the loan only when 
their proposal is accepted and they befall under certain criteria.
• The main challenge here is you do not provide any asset to the lenders, and this makes it hard to achieve the 
money. 
• But in the overall case, if the business has a good credit history and demonstrates the ability to repay, this loan 
can be accessed with ease.
3.   Bridging Loans
• Bridging loans are secured loans that are used by construction firms to make immediate payments in case of 
large projects. 
• The building loans are used in case the firm wants to buy the property on behalf of the client.
• The bridging loans are secured and are provided when collateral is given. They also quick loans and have a 
huge interest rate associated with them.
• The loans need to be paid back in time to avoid huge interest rates. Once the loan is availed, it also can be 
transferred as mortgage loans after the property price rises.
• Construction can involve a lot of investments. It is not feasible to cut the cost of the equipment and materials 
used for the construction.
Conclusion
•An Alliance International can chase the cost away by hiring 
labor through good construction recruitment agencies to 
resolve the financing issues and manage good overall 
finance. Contact us today for the best hiring solution!
CONTACT US
Alliance International
Address : B-707 MONDEAL SQUARE Sarkhej Gandhinagar Hwy, 
Prahlad Nagar, Ahmedabad, Gujarat 380015
Mobile No : +91 8980018741
Website : www.allianceinternational.co.in
Email Id : [email protected]
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