Contract Financing for Construction Contractors: The Questions Growing Subcontractors Are Asking
Read Time: 10 Minutes Winning more work should feel like momentum. But for commercial construction subcontractors, growth often surfaces a harder question: how do you cover the cost of a project before you’ve been paid for it? Below, we answer the six questions contractors ask most about contract financing — plainly, and without the jargon. […]
Alternatives to traditional bank loans for construction companies
Read Time: 5 Minutes Your contracting business can have a strong backlog, a profitable project, and more work on the horizon, but when you turn to the bank for the capital to get that work started, the answer can still be no. That doesn’t necessarily mean the business is unhealthy. More often, it reflects a […]
How to Manage Cash Flow Across Multiple Construction Projects
Read Time: 5 Minutes Running several projects at once can be healthy growth, but it can also turn cash management into a portfolio problem. While each job may be profitable when it’s finished, spending along the way — payroll, material purchases, subcontractor invoices, retainage, and owner payments, for example — rarely line up neatly across […]
How to Improve Cash Flow in a Construction Business Without Slowing Growth
Read Time: 5 Minutes A full backlog should feel like progress. But in construction, more work can also mean more pressure on cash flow. Upfront costs add up fast—labor, materials, equipment, vendors, and mobilization costs, to name a few—and typically, those bills arrive well before a pay application becomes cash on hand. That timing gap […]
6 Construction Financing Options Every Growing Contractor Should Understand
Read Time: 5 Minutes If you’re a growing contractor, you’ve probably heard some version of the following advice: “Just find the cheapest capital.” At first glance, that sounds reasonable. Lower rates should mean lower costs. But when it comes to construction financing, the rate is only part of the story. The better question is this: […]
Cash Flow Management for Construction Businesses
Cash flow in construction is complex, but managing your company’s cash flow shouldn’t feel impossible. What you need are a few simple, actionable strategies that will take your cash flow management from chaotic to clear and productive. Cash flow experts Scott Peper (Mobilization Funding), Suzanne Cox, CPA, CIT, (Saltmarsh, Cleaveland & Gund) and Lori Drake, […]
How to Calculate Operating Cash Flow
Cash flow comes in three forms: operating, investing, and financing. We’ll focus on operating cash flow, which is the money your business makes from selling goods or services. Basically, the money your company makes doing whatever it is your company does. Financial cash flow shows the money you use to fund your business, including debt, […]
What are the Differences Between Other Loan Programs like Factoring Vs. Line of Credit and Merchant Cash Advance?
When looking for immediate cash or a loan to help your business get the financing you need to start a project or build a product, there are a plethora of options available to you., but which one is right for you? Factoring vs. line of credit. What are the pros and cons of each? Where […]
What is Key When Managing Cash Flow for Small Business on a Project and Account for Various Costs and Expenses?
Cash flow is not hard to manage once you are aware of what information you need to track. First and foremost, you need to know what the costs are. Make a list of everything needed for your project. This will include expenses such as materials, travel, labor, tools, etc. Managing cash flow for small business […]
When is the Best Time to Pay for Materials? Should I Try to Take Advantage of Discounts and the Best Price?
Wondering when the best time to pay for your materials might be? When it comes to paying for materials, the optimal solution depends on the project modeling, needs of the project, and the cash flow requirements. It also depends on how long it takes to secure the material and how readily available it is. If […]