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2021 National Subcontractor Market Report: Statistics on Business Growth & Financing

Published: May 19, 2021
Last updated: November 04, 2022
Read time: 5 minutes

About Billd: At Billd, we provide a payment solution that enables commercial construction contractors to free up cash for material purchases while enjoying the flexibility of 120-day payment terms. You get financing for commercial materials upfront with the freedom to pay it back at your own pace. Learn more about how we can help eliminate your company’s cash-flow problems so you can win more bids and grow your business.

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Subcontractors must overcome three main macroeconomic issues in order to grow their businesses: hire skilled workers despite the industry-wide shortage; monitor and adapt to new regulations; and gain access to capital beyond their current sources.

28% of subcontractors finance business growth with a line of credit; 8% use credit cards; 7% use invoice factoring; 6% use private lenders; and 5% utilize other sources. the remaining 44% of plan to use cash on hand.

46% of subcontractors recognize cash flow as a notable challenge for their business. 63% of contractors pay for materials before receiving payment for their work, which disrupts cash flow and impacts their ability to grow.

Contractors use a variety of credit sources: 74% use credit cards; 67% have bank lines of credit/bank loans; 31% utilize equipment leasing/loans; 19% turn to invoice factoring; 15% work with private lenders; and 9% use none of these.

The vast majority of subcontractors (73%) have 30-day terms with their material suppliers; 22% of subs have 45-day or 60-day terms; but only 4% of subs have supplier terms greater than 60 days, which better align with construction payment cycles.

Chris DoyleCEO & Founder of Billd

Christopher Doyle is an entrepreneur and business leader with extensive construction industry experience and a record of launching successful startups. He is the co-founder and CEO of Billd, a disruptive payment solution for the construction industry that helps contractors and suppliers grow their businesses with less hassle and risk. Recognizing the cash flow hurdles that contractors face when purchasing materials, Doyle launched Billd to make traditional Wall Street working capital accessible to business owners in the construction industry.

Are you ready to unlock more working capital for your business?

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