On the Better Construction podcast, hosted by Sean McStay, Billd CCO Jesse Weissburg discussed contractor financing and payment terms; specifically, why the construction industry needs new financial solutions, and how Billd is filling those gaps.
Jesse starts by diving into why traditional financial institutions have been reluctant to work with contractors – largely because of the cash flow issues presented by the standard construction payment cycle. And, because contractors have always been responsible for fronting the cost of materials, these challenges are cyclical.
But, as we learn later in the episode, there are new methods available to contractors to help them smooth out their cash flow and ultimately grow their businesses. With Billd specifically, we do this by taking a project-based approach to financing. While banks will look at business history to make decisions, we emphasize the details of each specific project a contractor is working on. In construction – an industry based on relationships – this makes for a much more effective partnership.
“Let’s be frank – the construction industry is relationship based. Subs having the relationship with the supplier, subs having relationships with the GC; it’s very important that those relationships are upheld to the highest degree.” – Jesse Weissburg