Steps to Take to Find a Commercial Lendor

When you are looking to finance your next commercial real estate project, you need to find a commercial lender. Why, you might ask? You need someone on your side who is an expert in the nuances of the kinds of loans that are a part of commercial real estate. But finding one can be kind of tricky. Here are a few tips to help you find a great commercial lender.

Commercial banks and lenders often specialize in the larger companies, so finding ones that specialize in small businesses is often harder. The good news is, especially since 2012, small business lending has been on the rise.

One way to find a small business friendly lender is to look for a smaller lender. Community-based banks and credit unions are often much more likely to loan to a local business. Why? It’s partly based on their ability to know you and your business better than the big guys can. It’s also based on their willingness to support their local economy by investing in it. Some local banks are also participants in the Small Business Credit Initiative which is a federal program to help give small businesses a boost.

Another way to get a commercial loan is to find a lender who offers loans backed by the Small Business Administration. These loans are perfect when you don’t have the criteria that other loans would require for evaluating your creditworthiness. The SBA backs the loans, giving lenders the ability to loan to you without fear. You can either check to see if the lender lists that it is a Preferred SBA Lender or you can consult the SBA for a list of local lenders who are a part of the program.

If you can, find out who will actually be doing the loan evaluation and making the final decision, whether it is the bank itself or if they send off your loan to an outside company. This can change who you want to work with if you intend to work locally.

Once you do find a lender you like and are willing to work with, do your research on the company. You will be with them for several years while you pay off the loan, so you want to be sure you can have a good relationship with them. Check the company track record and make sure that they are likely to be around in 10 -15 years when your loan matures. You can also check to see if the company offers annual financial reviews to see if there are other financial products that it might offer you that can be of benefit.

The Commercial Finance Association also offers you some advice and help finding a commercial lender. Their service is free and you can do your search by what kind of loan you are seeking, the amount you want to finance, and where you are. The CFA will then give you options for a lender who will match what you are looking for.

Resourceful Marketing Ideas for Construction Companies

Especially in architectural and construction industries the marketing strategies are way behind than most other industries and trades. They mostly rely on public tenders and repeat or referral businesses. Though people related to construction industries consider that the best marketing tool is still the word of mouth, but why can’t we explore more innovative ideas to get the company’s name or the brand name highlighted.

But all the new techniques you opt to try would depend on the budget you have for that purpose. It’s quite obvious that lesser budget would restrict you to have all the marketing weapons. But no matter what the financial plan is, there are a lot of many marketing strategies to choose from, in order to get fast business growth and recognition. Here are a few humble and effective ideas to get started with.

Online Content Marketing

Content marketing is the strategy of attracting and retaining customers by consistent creation and distribution of relevant, notable and valuable contents. Many small companies are benefitted by using online content marketing policy. Your expertise in the business can help you earn extra visibility and produce more work by just passing on beneficial hints and information to the people through the internet. Clients and customers would be more confident about your skill set and experience and would prefer to get their work done by you.

Referrals from existing clients

All big and small construction companies rely on client referrals as a useful means of generating leads and getting new contracts. Good and happy clients are always co-operative and have no issues in recommending your name to other probable customers. So it’s a good idea to encourage them to get more and more referrals by creating different reward programs, like for each new customer sent, offer them a discount percentage on the next work they sign with you.

Cordiality Packages

Cordiality or hospitality packages could be planned for your existing or old clients by organizing some day or evening entertainment or party. You may include even the guests of former clients to a cocktail or a dinner party in a decent hotel. This would surely inspire them to sign up for more new work and bring new clients which in turn would justify your initial investment.

Commercial Construction Tips – Completing the Project On Budget

There are times it feels like it’s newsworthy to announce a commercial project that came in either on budget or even under budget. But the truth is most projects are undertaken with the expectation that they will be completed on budget, even though that can also be the hardest aspect of the project to complete. Here are a few tips to keep in mind so you, too, can bring your commercial construction project in on budget.

Few contractors are willing to take less profit to compensate for any cost overruns that happen on the project. As such, there is almost no contract written that expects a contractor to take a loss. Change orders are de rigueur, so expect to see them. Even if a contract is based on a fixed price or bid, the contractors and subcontractors can still pass cost overruns on to you. A time and materials contract often means your contractor will end up paying for overruns himself or herself, but even this is not guaranteed.

To keep this from happening, look over the contract carefully. Omissions are the leading cost overrun category. Check the contract to be sure it covers things like permits, licenses, fees, and so on. Also make sure that every aspect of the project is covered in the plans and contract documents. A clearly crafted contract ensures that all parties involved understand exactly what is expected. Never assume anything when it comes to a contract.

Before anything is finalized, have an engineer and/or an architect look over the specs and the plans to be sure they are complete. You should also make sure your project manager is on the same page you are and that he or she fully understands the plans and the project scope before anything gets started. A consultant may be able to give you some advice as well, and though it costs more up front, you could end up saving thousands in the long run.

If your project has anything unusual about it or it will be using exotic materials, be sure these are accounted for in the contract. Also do an inspection if you can of the job location so you know exactly what condition the property is in. Will there be a lot of trees to clear? Is the existing building that will be retrofitted in good shape or does it have water or insect damage?

Make sure you build in an allowance for price increases that may occur between the time the contract is granted and the project completion. This is also very important in a rapidly changing market to keep you on budget.

One last big thing you as the project owner can do is ensure you are all set with the materials that will be used and that the plans meet your specifications. Changing your mind part way through and deciding you want tile floors instead of concrete or a wall removed that wasn’t called for in the original drawings can cost you a lot more than you had bargained for.

No one has a crystal ball and can look into the future with absolute certainty, but doing everything you can ahead of time to anticipate the project’s needs will go a long ways towards saving you money and frustration.