How General Contractors Can Use Plastiq
2 min. read
Jul 11, 2019
Tired of high interest loans and lines of credit? As a general contractor, you know all about the vast amounts of upfront costs needed to start a construction project. You’re probably also familiar with the cash crunch that happens after you buy materials but before you’re given the final payment. Buying enough materials with your company’s cash on hand can also be a challenge without enough cash flow. This is where Plastiq can help.
Plastiq enables general contractors to float these upfront costs from the point of purchase for up to 60 days. This allows for more time to finish a project and collect payment from a customer, which frees up cash on hand and gives a contractor more opportunity to bid on more projects.
Being paid in installments can tie up a company’s cash flow. In California, for example, government construction projects are paid on Net 120 terms, so it could take four months after completion of the project to be paid. Using Plastiq, general contractors can float out these costs, so cash flow isn’t as restricted.
With Plastiq, in addition to materials, you can pay for expenses such as machiner, and commercial rent, all with a credit card. Plastiq’s unique platform gives general contractors the freedom and opportunity to pay virtually whoever they want. There are many added advantages including, but not limited to, early-pay discounts, more cash flow, and the ability to buy more inventory up front.
Paying vendors in cash add up to a huge expense. It can be difficult acquiring that much cash and still have leftover cash on hand. However, many vendors will give early-pay discounts which can be up to 2% and by paying with a credit card through Plastiq, general contractors can reap the rewards. With Plastiq, you pay with your credit card while the recipient receives payment in the form of a check, ACH, or wire transfer. And the recipient doesn’t even need to be signed up with Plastiq to accept your payment.
There is no more need to open up loans or lines of credit with steep interest rates. Plastiq enables you to use the credit you already have and pay it off at the end of each cycle. Through leveraging existing credit, many general contractors have been able to exponentially grow their business.
The construction industry is very competitive and it can be difficult to establish a name. Use Plastiq and help your company increase cash flow while reaping early-pay benefits and credit card rewards. In return for paying early and on time, vendors are more apt to work with you and customers are happy because the company has all the resources needed to finish their project.
Sign up for Plastiq today and help your general contracting business take advantage of the Plastiq Advantage!
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