Construction Financing Can Be Very Challenging for Contractors

Contractors seeking financing for their projects and jobs will always struggle to secure construction financing to fit their needs for one basic reason.

Because they are working in an industry where hold back legislation and builder lien legistlation, lenders are reluctant to provide conventional financing facilities due to the fact that the hold back and lien rules take priority over their security and their ability to receive loan repayment in the event of a construction project dispute.

The result is that contractors and subcontractors have to provide hard security that is unrelated to any projects they are involved in so there is no risk of the security not being accessible by the lender.