Billd launches Pay App Advance to improve subcontractor cash flow
Labor costs in the construction industry are rising, and it’s impacting subcontractor cash flow and the overall liquidity of commercial construction projects. Billd, a provider of material financing for commercial subcontractors, launched a new product, Pay App Advance, to improve cash flow for subcontractors and facilitate more timely payments for labor.
“When we’re not paid on time, which can happen frequently, we’re required to come out of pocket for labor which can put an undue stress on the business,” said Derek Mateos, President of Matcon Construction of Tampa, Florida. “We’ve also felt the spike in labor costs, which adds to this challenge. Billd’s Pay App Advance has assisted in stabilizing cash flow and has been a great support tool for our recent success.”
Pay App Advance provides same-day financing to cover the cost of labor, eliminating the responsibility of the subcontractor to float their own capital to fund projects and pay their workforce. With the addition of Pay App Advance, Billd now provides commercial subcontractors with upfront access to financing for the two largest expenses on a project: materials and labor.
Billd has taken major strides in the construction industry to provide financing terms that align with payment cycles. Billd has financed several hundred million dollars of materials, lowering the liquidity risk that General Contractors and Developers face on major construction projects. Since April of 2020, material and labor costs have skyrocketed, forcing subcontractors to pay out of pocket to get projects underway, increasing overall project risk. According to one recent study by AGC, material prices have risen 27.8%, yet bid prices have only risen by 5.2% over that same period. This gap has compressed margins and put an even greater strain on subcontractors, further magnifying their need for more financing options.
“The powerful combination of our Material Financing product with Pay App Advance gives subcontractors the resources and purchasing power they need to not only remain liquid throughout the entire project, but also to take control of their cash flow and grow their business,” said Chris Doyle, CEO of Billd. “Unfortunately, reliable, trustworthy and efficient financing alternatives simply haven’t been available to help these crucial businesses navigate these enduring challenges.”
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