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Project-Based Credit Limit

Project-Based Credit Limit

What is a Project-Based Credit Limit?

A credit limit set based on the specific needs of a project, allowing contractors to finance larger projects more effectively

More In-Depth Definition of a Project-Based Credit Limit

A financial limit set for a specific construction project based on the project contracts and the value of the work to be completed. It helps contractors manage cash flow by covering costs like materials, labor, and subcontractor payments, making it easier to finance larger projects and keep them running smoothly.

Example of a Project-Based Credit Limit

A contractor can secure a Project-Based Credit Limit that provides sufficient funds to cover material costs.