The funds available to cover business expenses. Material financing can increase working capital capacity by covering material costs.
Working Capital is the available financial resources that cover the day-to-day operational expenses of a construction business. Material financing can enhance working capital by allowing contractors to defer costs for materials, improving cash flow management.
A contractor may use a Pay App Advance or Material Fiinancing to increase their working capital capacity, allowing them to purchase necessary materials and pay labor costs even before receiving full payment for a completed project.