NUMBER FOUR – You must hand it to some companies. It does take panache to propose to pay companies less than what they are owed simply because you know they need the working capital. Payment-chain flaws that cause chronically long accounts receivable and acutely limited working capital for construction companies creates the opportunity for discounting invoices, factoring receivables, and ideas like Early Payment Programs to thrive. But companies that use these compensating tactics as a practice to routinely hard-bargain their subs and suppliers into accepting less, sooner, vs. the unknown later… well, that gets old and leads to more distrust, higher bids, and inferior performance. Unfortunately – despite being unseemly – these cash flow solutions have legitimate value in the construction-survival equation today. Couldn’t financial technology handle all of this more objectively, rapidly and reliably without all the flaw-compensating nonsense?
What is BuildPay?
BuildPay uses financial technology that connects the entire payment chain, enabling fast, direct payments, quicker build times (encouraged by better payments), and better material pricing (made possible by guaranteed payments). Construction the way it should be. #GotPaid