Flexbase launches credit card for construction

Dive Brief:

  • Flexbase, an automated payment system for contractors, has introduced a credit history card customized to development firms.
  • Targeting smaller- and mid-sized companies, the Flexbase Card is available nationwide, giving up to 60 times fascination-absolutely free credit history, according to a launch shared with Development Dive.
  • The business aims to help these scaled-down firms overcome hurdles related with sluggish payments and cashflow challenges, said Zaid Rahman, CEO of Flexbase, in the launch. “With our card featuring, we are likely to democratize obtain to money for design firms of all sizes, and deliver equivalent opportunity to everybody,” he said.

Dive Insight:

In May, Flexbase received $2.5 million in pre-seed fundraising in aspect from Suffolk Systems, the enterprise funds arm of Boston-centered contractor Suffolk. Launched in October 2020, the firm aims to improve the pace of funds flow in the design market by enabling contractors to mail invoices and paperwork to consumers rapidly. On ordinary, Flexbase statements, its consumers get compensated 63% earlier.

Contractors that use the new credit score card in tandem with the Flexbase system will be able to reach insight into their economic information and other aspects and will be possibly suitable to borrow much larger credit history quantities, the launch reported. New workflow enhancements among the card and the platform will also lower paperwork and raise invoicing effectiveness. 

This is the industry’s initial card requiring no personal assure and no safety deposit, the corporation reported.

“Modest and medium development organizations really should not be failing in a booming market. By supercharging their obtain to money, we are satisfying the demands of a seriously underbanked and credit invisible current market section,” said Rahman. 

In associated news, program company Briq lately launched a payment card for the building market. BriqCash presents normal and specialty contractors the means to automate bill processing, onboard and manage sellers, command expenses at the price tag-code stage and make direct payments that generate money again and industry-distinct benefits on goods this sort of as instruments, machines rentals and materials.

Entry to financing has taken on a vital role for contractors of all measurements considering that the COVID-19 pandemic, which has slowed payments, according to a study by building application agency Levelset.

Just 9% of corporations usually get compensated on time, a decrease of 60% from previous 12 months, and some of the monetary danger correlates directly to the building payment chain, the review discovered. General contractors are four times much more most likely than subcontractors to get paid out within 30 times, and 50% more very likely to get paid out in full. Just one in 5 subcontractors, suppliers and other sub-tier get-togethers on a regular basis hold out further than 60 days to acquire payment. 

“The pandemic drove fiscal uncertainty as a result of the roof and place an further kink in the movement of dollars on tasks across the place, ” claimed Scott Wolfe Jr., CEO of Levelset. “Payment delays throttle a company’s skill to be competitive, consider on new initiatives, and improve their business.”