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S1E3: How to access more capital and cashflow as a contractor
If you cannot get a line of credit or access capital, growth as a contractor is next to impossible. With tons of upfront costs like labor, equipment, and fuel, most contractors aren't getting paid until almost 100 days after a job is complete. That's the worst payment timeline in any industry. And sometimes they won't even see the full payment. This leads to worse credit which, of course, leads to a lower chance of getting a line of credit or loans. And in this process, contractors absorb all the risk.
So what's the solution? That's what Zaid and Kevin talk about on this week's episode of Building Builders. They break down the most common payment terms and how contractors can navigate debt-to-equity ratios, access more short-term capital, and use that capital to grow their business.
Other Key Moments:
- Zaid's background, his ties to construction, and why he started Flexbase (0:40)
- What Flexbase is and how it works for contractors (3:54)
- Why accessing cashflow and invoicing is so hard for contractors (9:15)
- Navigating relationships with collecting payment in contracting (12:32)
- Why it's difficult for contractors to get a line of credit (20:08)
- How contractors can leverage short-term capital to manage debt (23:29)
- How to leverage short-term capital to grow your business 3x (28:44)
- Why understanding financing and accessing capital are crucial to growth for contractors (31:35)
- How FinTech and other technologies are affecting construction (33:30)
Favorite quote:
"If you can solve this capital problem, both on the short and long term, you can basically out-compete anybody."----------------------
About DOZR
Building Builders is created and published by DOZR, a rental marketplace for construction equipment. With DOZR, you can find hundreds of heavy equipment rental companies near you in just one click. Join thousands of contractors looking for rental equipment across North America today.
Zaid Rahman's Links
Website: https://www.flexbase.app/
Twitter: @zaidrmn
Building Builder Links
Website: https://www.buildingbuilderspodcast.com/
DOZR Website: https://www.dozr.com/?utm_source=Podcast&utm_medium=BuildingBuilders&utm_campaign=DOZR
Watch on YouTube: https://www.youtube.com/channel/UCy3FNu-uRE6XYaUDHjM5w8A
Instagram: @dozr.rentals
Facebook: @dozr.rentals
Twitter: @DOZRHUB
View all episodes
By Kevin ForestellIf you cannot get a line of credit or access capital, growth as a contractor is next to impossible. With tons of upfront costs like labor, equipment, and fuel, most contractors aren't getting paid until almost 100 days after a job is complete. That's the worst payment timeline in any industry. And sometimes they won't even see the full payment. This leads to worse credit which, of course, leads to a lower chance of getting a line of credit or loans. And in this process, contractors absorb all the risk.
So what's the solution? That's what Zaid and Kevin talk about on this week's episode of Building Builders. They break down the most common payment terms and how contractors can navigate debt-to-equity ratios, access more short-term capital, and use that capital to grow their business.
Other Key Moments:
- Zaid's background, his ties to construction, and why he started Flexbase (0:40)
- What Flexbase is and how it works for contractors (3:54)
- Why accessing cashflow and invoicing is so hard for contractors (9:15)
- Navigating relationships with collecting payment in contracting (12:32)
- Why it's difficult for contractors to get a line of credit (20:08)
- How contractors can leverage short-term capital to manage debt (23:29)
- How to leverage short-term capital to grow your business 3x (28:44)
- Why understanding financing and accessing capital are crucial to growth for contractors (31:35)
- How FinTech and other technologies are affecting construction (33:30)
Favorite quote:
"If you can solve this capital problem, both on the short and long term, you can basically out-compete anybody."----------------------
About DOZR
Building Builders is created and published by DOZR, a rental marketplace for construction equipment. With DOZR, you can find hundreds of heavy equipment rental companies near you in just one click. Join thousands of contractors looking for rental equipment across North America today.
Zaid Rahman's Links
Website: https://www.flexbase.app/
Twitter: @zaidrmn
Building Builder Links
Website: https://www.buildingbuilderspodcast.com/
DOZR Website: https://www.dozr.com/?utm_source=Podcast&utm_medium=BuildingBuilders&utm_campaign=DOZR
Watch on YouTube: https://www.youtube.com/channel/UCy3FNu-uRE6XYaUDHjM5w8A
Instagram: @dozr.rentals
Facebook: @dozr.rentals
Twitter: @DOZRHUB