F E AT U R E Why General Contractors Prefer Subcontractors Who Use Financing by Chris Doyle, Billd
As a subcontractor, your reputation with general contractors is critical. In the interest of maintaining it – when it comes to project finances, you may choose to keep the details close to the vest. Especially if you’re interested in trying a non-traditional payment option, like material financing or factoring. The reigning perception in construction is that “cash is king.” If you’re using anything other than hard cash flow to fund labor, materials or equipment, you might worry about giving the impression that you have trouble paying vendors.
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This flawed perception tends to cast an unjustified stigma on contractor financing in general. Yet, there is no reason to feel uncomfortable revealing that you’re financing project materials; it’s actually something that your GC should love to hear – thanks to the ample benefits it has on the project. Ultimately, subs need to know that they don’t have to be apprehensive about “the way it will look” if they finance materials, rather than paying cash. Because at the end of the day, when you finance materials, you’re doing your GC, and yourself, a big favor.
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There is no reason to feel uncomfortable revealing that you’re financing project materials, it’s actually something that your GC should love to hear We’ll explore several reasons why your GC will be more than happy to see you financing materials, and the positive impact it has on the projects you’re working on: 1. Ensures that Projects Stay on Schedule When you’re on a commercial job, your schedule, material deliveries, and finances need to be tightly
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