Electrical Contractor Loans

Electrical contractors are a crucial part of every construction job. Without electricians being paid on time projects can stall, and worst of all, there might not be electric. Electrical contractors are subcontractors and most often paid by general contractors. Frequently contracts between general contractors and electricians are paid when paid contracts or time and material contracts. Time and material contracts result in electricians laying out money for materials, equipment, and labor, then billing in arrears and waiting 30-60 days to get paid. If the contracts are paid when paid, electrical contractors are waiting for the general contractor to be paid before collecting payment on their invoices.

These billing cycles cause electricians to turn to electrician loan programs. By using electrical contractor financing electricians have the ability to finance mobilization and ongoing project expenses. Electrical contractor loans are a great way to focus on your trade and growing your business, instead of thinking about how to pay for new jobs. Some of the ways to use electrical contractor loan programs are below.

It’s important to make sure that you are choosing the right electrician loan for your business. When buying materials, you should be using contractor loan programs that are flexible and have a short duration. Materials turn quickly and you want to make sure that you’re able to pay back an electrical contractor loan when materials are used. Unlike materials, equipment has a longer life cycle. Equipment should be purchased with electrical contractor loan programs that are paid back over several years.

Most business owners are focused on managing employees, bidding on new jobs, and covering day to day expenses. This is why it’s important to use a trusted source that can provide the best solution and all the details about it. At SMB Compass we will guide you through the application process and make sure that you choose the right electrician loan program for your business.