Billd launches Pay App Advance to improve subcontractor cash flow
Labor costs in the construction industry are increasing, impacting the cash flow of subcontractors and the overall liquidity of commercial construction projects. Billd, an equipment finance provider for commercial subcontractors, has launched a new product, Pay App Advance, to improve subcontractor cash flow and facilitate faster payments for labor.
“When we are not paid on time, which can happen frequently, we have to pay for labor, which can put undue pressure on the company,” said Derek Mateos, president of Matcon Construction of Tampa, Florida. “We have also felt soaring labor costs, which adds to this challenge. Billd’s Pay App Advance has helped stabilize cash flow and has been a great supporting tool for our recent success.
Pay App Advance provides same-day financing to cover the cost of labor, eliminating the responsibility of the contractor to float their own capital to fund projects and pay for their labor. With the addition of Pay App Advance, Billd now offers commercial contractors initial access to financing for the two most important expenses of a project: materials and labor.
Billd has made great strides in the construction industry to provide financing terms that align with payment cycles. Billd has funded several hundred million dollars of materials, reducing the liquidity risk faced by general contractors and developers on large construction projects. Since April 2020, material and labor costs have skyrocketed, forcing subcontractors to pay out of pocket to launch projects, increasing the overall risk of the project. According to a recent AGC study, material prices rose 27.8%, while bid prices only rose 5.2% over the same period. This spread squeezed margins and put even greater pressure on subcontractors, further amplifying their need for more financing options.
“The powerful combination of our hardware finance product with Pay App Advance gives contractors the resources and purchasing power they need not only to stay liquid throughout the project, but also to take control of the project. their cash flow and grow their business, ”said Chris Doyle. , CEO of Billd. “Unfortunately, reliable, trustworthy and effective financing alternatives have simply not been available to help these crucial businesses overcome these persistent challenges. “
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