Construction Financing
It refers to the funding provided to developers or individuals to cover the costs associated with building or renovating properties. It is a type of loan specifically tailored for construction projects and typically involves different stages of disbursement based on project milestones.
- Combines multiple debts into a single loan, reducing the number of monthly payments to manage.
- Potentially secures a lower interest rate than existing debts, reducing overall repayment costs.
- Can lower monthly payments, freeing up cash flow for other business expenses and investments.
- Makes it easier to track payments and due dates, simplifying financial management.
- By paying off multiple debts, it may help improve the business's credit score over time.