The Biggest Differentiator Between a Construction Company That Thrives and One That Dies
There are many inherent issues in the construction industry that can make running a successful construction business difficult.
At Flexbase, we’ve taken a hard look at the biggest differentiator between a construction company that thrives and one that dies — and came up with a solution.
The Obvious Answer Is Cash Flow
It is no secret that construction businesses live and die by their cash flow. With payment being a constant waiting game and the expense for materials never slowing up, cash flow is one of the biggest problems in the construction industry.
The hard truth: Your ability to navigate cash flow problems can make or break your construction business.
Slightly Terrifying Cash Flow Statistics for Construction Companies
- According to a U.S. Bank study, a whopping 82% of businesses that failed cited cash flow problems as a factor in their failure.
- 27% of businesses surveyed by the NSBA claimed that they weren’t able to receive the business funding they needed, no matter which financial institution they asked (large or small)
- Big banks only approve 23% of funding requests on average
Here’s What a Dying Construction Company Looks Like
A dying construction company suffering common cash flow issues can look a little something like this:
- They are relying on credit cards with the standard $5,000 limit, which they had to drop cash on a security deposit to even obtain
- They are personally liable for expenses paid with their credit card
- Their credit card limit is based on their own personal credit score
- Their average wait time for project payments is 63 days.
Here’s What a Thriving Construction Company Looks Like
A thriving construction company relies on Flexbase to help solve its cash flow problems.
A successful construction business utilizing Flexbase may look like this:
- Thanks to the Flexbase card, they can obtain a $42,000 credit limit with no security deposit.
- In the event that a project falls through and they have already bought materials for using their Flexbase card, they are not personally liable.
- Their credit limit is not based on their personal credit score.
- Thanks to Flexbase’s payment management system, their average wait time for project payment is just twelve days.
What’s the Difference Between the Flexbase Credit Card and Traditional Credit Cards?
Traditional credit cards only offer the standard:
- Required deposit
- Generic rewards
- Credit limits that just don’t make sense for construction expenses and are based on your personal credit score
A traditional credit card has no bells and whistles attached and actually holds little value for construction companies.
When it comes to cash flow problems, the standard credit card is nothing more than a generic bandaid.
The Flexbase card is different. It is a credit card specifically designed to solve cash flow problems in the construction industry.
With the Flexbase Card, you get real solutions to your cash flow problems, including:
- Up to 10x the credit limit than traditional cards
- No deposits required.
- Cash rewards that take seconds to earn
- A credit limit that’s based on your future project invoices, not your personal credit score
- Built-in expense management software
Take Control of Your Cash Flow With the Flexbase Card’s Built-In Money Management System
The real game changer is that the Flexbase card is more than just a credit card, it’s a money management solution.
With the Flexbase card, you can:
- Track receipts and expenses by project every time you or an employee swipes the Flexbase card.
- Get approved for low-interest loans based on the scale of your projects, not your personal financial situation.
- Get paid with invoice factoring NOW instead of waiting 60+ days to get paid.
- Take advantage of Flexbase’s automation process and get paid by clients faster.
When it comes to finding the best credit card for your construction company, the answer is a no-brainer. Get approved for the Flexbase card today and start solving your cash flow problems.
