Contractor Cash Flow Challenges 

 

Large Capital Purchase

30% to 50% of overall project costs are materials & equipment.

Timing of Purchase

Contractors are usually required to purchase and pay for materials and equipment prior to receiving full payment from the customer.

Forecasting Cashflow

Difficult to forecast payment from the customer once work completed – often takes 30-90 days or more to receive full payment.

Access to Credit

Contractors have a difficult time obtaining traditional bank financing and typically have to work with multiple Suppliers to access sufficient credit to grow their business.

Trade Credit Financing

 

Terms

Up to 120 days

Weekly Finance Charge

$50 per $10,000 borrowed

Interest Free Period

Contractors can receive up to 30days interest/payment free*

Contractor Payments

Auto debited weekly. Principal due by maturity date

*Requires supplier discount