Flexbase launches credit card for construction

Dive Brief:

• Flexbase, an automated payment system for contractors, has introduced a credit history card tailor-made to building providers.
• Focusing on tiny- and mid-sized companies, the Flexbase Card is readily available nationwide, presenting up to 60 times fascination-free of charge credit, in accordance to a launch shared with Construction Dive.
• The business aims to support these scaled-down companies overcome hurdles associated with sluggish payments and cashflow troubles, said Zaid Rahman, CEO of Flexbase, in the launch. “With our card providing, we are likely to democratize obtain to cash for development corporations of all measurements, and convey equal option to every person,” he explained.

Dive Perception:

In Could, Flexbase obtained $2.5 million in pre-seed fundraising in section from Suffolk Technologies, the venture capital arm of Boston-based contractor Suffolk. Released in October 2020, the corporation aims to increase the speed of income move in the design market by enabling contractors to mail invoices and paperwork to customers quickly. On common, Flexbase promises, its clients get compensated 63% previously.

Contractors that use the new credit history card in tandem with the Flexbase system will be equipped to accomplish perception into their financial information and other elements and will be most likely qualified to borrow greater credit history amounts, the release stated. New workflow enhancements concerning the card and the system will also lower paperwork and improve invoicing efficiency. 

This is the industry’s 1st card demanding no particular assurance and no safety deposit, the enterprise reported.

“Tiny and medium building organizations should really not be failing in a booming sector. By supercharging their obtain to money, we are fulfilling the requires of a severely underbanked and credit score invisible current market phase,” said Rahman. 

In connected news, computer software company Briq a short while ago launched a payment card for the design business. BriqCash gives standard and specialty contractors the means to automate bill processing, onboard and regulate suppliers, handle bills at the expense-code stage and make direct payments that receive income again and sector-specific benefits on objects this kind of as equipment, devices rentals and materials.

Access to funding has taken on a important purpose for contractors of all sizes considering that the COVID-19 pandemic, which has slowed payments, in accordance to a analyze by building application business Levelset.

Just 9% of firms generally get paid on time, a drop of 60% from past 12 months, and some of the fiscal chance correlates straight to the design payment chain, the review discovered. Common contractors are four periods a lot more possible than subcontractors to get paid out inside 30 times, and 50% much more likely to get paid in complete. One in 5 subcontractors, suppliers and other sub-tier functions regularly wait past 60 times to acquire payment. 

“The pandemic drove monetary uncertainty by means of the roof and set an extra kink in the flow of hard cash on initiatives across the nation, ” said Scott Wolfe Jr., CEO of Levelset. “Payment delays throttle a firm’s ability to be aggressive, choose on new jobs, and develop their organization.”