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Glossary
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Materials Financing

Materials Financing

What is it?

A type of financing that helps businesses cover the cost of materials while waiting for customer payments. It can improve cash flow and ensure the availability of necessary materials without upfront payment

Definition

Materials Financing is a financial strategy used to support the procurement of materials for construction projects. It involves securing funding to cover the cost of materials, either through loans, credit arrangements, or other financial instruments. This approach helps manage project cash flow, allows for timely acquisition of materials, and can improve overall project efficiency and budgeting.

Example

Financing option for purchasing construction materials.