Tag: Working Capital
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How Much Cash Does a Subcontractor Need to Start a New Job?
Here’s what’s really going on in the scenario above: the real reason why the subcontractor in the example above needs so much cash to keep that project going, the lights on, and his people paid is because of how long it takes for his customer to pay their bills! Or in other words, the faster…
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Thinking About A Mechanics Lien Process? 3 Reasons It Could Be A Good Idea
As someone working to get money in the door at a construction company, it will come at no surprise that payments come slowly. Very slowly. In fact, according to a PWC study of payment speeds across all industries, the construction industry ranked as the absolute slowest. On average, it takes a contractor 73 days to get paid…
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Growth Eats Cash, and Construction Is Always Hungry
Construction businesses are more likely to fail in a growing economy than in a declining economy. How likely, you ask? For subcontractors, the answer is three times more likely. Seems crazy, doesn’t it? Businesses are supposed to fail in an economic downturn, not during an expansion. How is it possible that a growing economy is…