How to Get a Loan for Commercial Construction Rebranding
Branding is a process recognized by many businesses for marketing value. Good branding creates a positive customer perception and experience - which in turn attracts more customers and more sales. Many people don’t realize however that branding is more than a logo. It can effect everything from a company’s advertising to their website to social media to signage and - yes - even their building construction. And branding shouldn’t be done once and called complete. “Rebranding” should occur every few years to keep a company fresh in consumer eyes and attract new customers. Therefore, that means updating and rebranding a company’s building - whether storefront or office as well. And this can constitute everything from redoing signage to flooring to walls and dividers to lighting fixtures and more. Rebranding can touch everything - and it can be expensive. What’s more - branding (and rebranding) should be applied to the construction of all of a company’s or franchise’s locations. So the question arises: How to cover the costs of commercial construction rebranding? The answer? Loans. Today, the US Small Business Administration (SBA) has multiple loans available for companies to make use of. The most popular of these is their 7(a) loan program - known for its flexibility and amount. In fact 7(a) loans can provide businesses up to $5 million. Since building costs can be among the highest for company expenses, this can allow them to purchase real estate, build, renovate or rebrand. All of this makes construction loans perhaps the highest for the 7(a) program. The model for 7(a) loans is structured on multiple disbursements over time (as opposed to one-time lump sum payments). This actually works well for construction contracts, as loan payments can release money to the client to pay contractors over time as construction work stages are completed. Another reason this approach of multiple loan payments works for this industry is that sometimes construction work can be considered a risky investment. If construction work is not fully planned and approved for the multiple client objectives, stages and potential revisions, then costs (particularly in the case of one-time lump sum payments) can really effect a client’s construction investment funds. Whereas with multiple payments and work stages, there is more emphasis on continued work approvals and checks and balances to mitigate such risks, work-change orders, miscommunication, re-work and additional charges. Branding and re-branding - particularly in construction - can represent large costs for companies. Especially since many companies and franchises have multiple locations whose buildings should project consistent brand attributes. A good way to cover these expenses is with a loan. The SBA 7(a) loan is a very popular loan for this reason. And it is ideal for covering costly construction fees due to its $5 million lending cap. Another reason for its applicability to construction is its structure of multiple disbursements, since clients can align these with the multiple stages of construction projects - and therefore pay contractors and subcontractors the same way. In this way, the construction project and financial investment mitigate risk - since the multiple project stages and payments encourage check-ups and approvals along the way, and consequently reduce re-work. Want more info on construction rebranding? See Buildrite’s renovation services.