01/12/2021

Board Master

Change Begins At Home

Flexbase launches credit card for construction

Dive Brief:

  • Flexbase, an automatic payment platform for contractors, has launched a credit score card customized to design companies.
  • Targeting little- and mid-sized corporations, the Flexbase Card is readily available nationwide, presenting up to 60 days curiosity-totally free credit, in accordance to a release shared with Development Dive.
  • The organization aims to aid these scaled-down firms conquer hurdles linked with slow payments and cashflow troubles, said Zaid Rahman, CEO of Flexbase, in the launch. “With our card presenting, we are likely to democratize entry to funds for design organizations of all dimensions, and bring equivalent opportunity to absolutely everyone,” he reported.

Dive Perception:

In May, Flexbase received $2.5 million in pre-seed fundraising in portion from Suffolk Systems, the undertaking money arm of Boston-dependent contractor Suffolk. Introduced in Oct 2020, the firm aims to improve the pace of money circulation in the design business by enabling contractors to mail invoices and paperwork to prospects promptly. On ordinary, Flexbase promises, its consumers get compensated 63% before.

Contractors that use the new credit rating card in tandem with the Flexbase platform will be able to achieve perception into their financial details and other factors and will be likely qualified to borrow bigger credit rating quantities, the release stated. New workflow enhancements concerning the card and the system will also minimize paperwork and maximize invoicing efficiency. 

This is the industry’s 1st card requiring no particular promise and no stability deposit, the corporation stated.

“Small and medium building firms must not be failing in a booming marketplace. By supercharging their obtain to money, we are satisfying the wants of a seriously underbanked and credit score invisible industry segment,” said Rahman. 

In similar information, software program company Briq recently launched a payment card for the design field. BriqCash gives basic and specialty contractors the means to automate bill processing, onboard and regulate suppliers, command fees at the price-code level and make direct payments that generate income back and business-certain rewards on merchandise these kinds of as resources, products rentals and materials.

Obtain to financing has taken on a significant part for contractors of all dimensions because the COVID-19 pandemic, which has slowed payments, according to a review by design computer software firm Levelset.

Just 9% of businesses always get compensated on time, a drop of 60% from last calendar year, and some of the monetary danger correlates straight to the design payment chain, the study identified. Typical contractors are four instances a lot more probably than subcontractors to get compensated in just 30 days, and 50% a lot more probably to get paid out in comprehensive. Just one in five subcontractors, suppliers and other sub-tier events on a regular basis wait beyond 60 days to gather payment. 

“The pandemic drove fiscal uncertainty by means of the roof and place an excess kink in the movement of dollars on tasks throughout the nation, ” reported Scott Wolfe Jr., CEO of Levelset. “Payment delays throttle a firm’s capability to be competitive, just take on new jobs, and mature their small business.”