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How To Finance a Business: Short-Term vs. Long-Term

Construction Marketing

However, deciding on the right financing type can significantly impact immediate operations and future growth. Read on to learn how to finance a business with either short-term or long-term financing. It’s generally used to cover immediate business needs, such as payroll, inventory purchases, or unexpected expenses.

Finance 278
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Mortgage Banks Reported Negative Profits for the First Time Ever in 2022

Pro Builder

Negative profits in 2022 are likely a result of slower housing activity caused by higher financing costs coupled with elevated home prices, leading to lower purchase and refinance volume. Read more Financing Affordability Market Data + Trends Financing

Banking 52
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How Land Banking Could Help Builders Battling Shortages

Pro Builder

How Land Banking Could Help Builders Battling Shortages. Land banking offers a potential solution for builders to generate strategic capital and minimize the risks associated with land ownership in the midst of national shortages, according to John Burns Real Estate Consulting. Mon, 12/13/2021 - 09:49. A look into his crystal ball.

Banking 52
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The Impact of ASC 842 – The New Lease Standard Is Here

Construction Business Owner

The contractor’s focus should be on the impact the lease standard will have on the company, specifically bank and surety considerations, and the specific attributes such as embedded leases, related party leases, consolidation (when there is a variable interest entity), and how to apply the standard to these situations. Accounting & Finance.

Leases 177
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When Will the Fed’s Rate Hikes Come to an End?

Pro Builder

The Fed’s rate hikes are already having an effect on a cooling housing market, and its September “dot plot” indicated that the central bank expects the target for the federal funds rate by another 75 basis points in November, followed by 50 in December and 25 points at the start of 2023. Housing Policy + Finance. Financing.

Finance 52
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How to Deal with Extended Lead Times and High Material Costs

Levelset

Contractors report that supply chain disruptions impact inventory and their ability to forecast for the future. These cash flow challenges can cause detrimental results that drain the bank and negatively impact the amount of cash on hand. They just needed some cash flow support, and Materials Financing was the perfect partnership. .

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Types of Capital for Construction Businesses

Levelset

The term capital is used across industries to represent all of a company’s financial assets, including cash, inventory, equipment, and more. Because payment for construction jobs may be weeks or months after work is already completed, companies must manage their finances carefully to maintain cash reserves for taking on new jobs.

Debt 97