STACK and Billd Team to Help Contractors Secure Working Capital

Construction payment provider Billd is working with software platform STACK to improve working capital access.

The companies announced in a news release Wednesday (Sept. 6) that Billd’s financing solutions are now part of the STACK Takeoff and Estimating platform, letting subcontractors instantly access working capital ahead of construction.

“We encourage all of our customers to think about working capital availability, and if necessary, financing costs, as early as possible,” said Chris Doyle, Billd’s founder and CEO.

“This integration equips subcontractors to be proactive about project finances and bid, plan, and make promises to customers confidently, knowing that financial backing is readily available,” Doyle added.

According to the release, the integration lets subcontractors increase bid volume, secure working capital, and bolster supplier relationships.

“Supply chain finance has been historically unfair to subcontractors, leaving them footing the bill for materials and labor far before they’re paid for their work,” the release said. “Subcontractors wait twice as long as industry peers to be paid, averaging 74 days (almost two and a half months) after starting a project.”

That’s in keeping with the findings in the PYMNTS and American Express collaboration “Building Better Cash Flow In Construction With Digital Payments,” which examines the pressures construction firms face and how they’re responding by reliance on digital tools.

“Getting paid on time is a major roadblock in the construction industry, disrupting cash flow for U.S. construction professionals,” the report said. “Only 11% of construction professionals say they are paid in full on every job, and the impacts can be devastating.”

The report also noted that 97% of construction professionals feel strained due to slow payments and cash flow issues. Some of these headaches are being eased by digital payments technology, as companies embrace the speed and operational efficiency of digitizing.

Meanwhile, more recent PYMNTS Intelligence finds businesses of all kinds turning to technology to access working capital.

Sixty percent of small- to medium-sized businesses (SMBs) in the U.S. say they have implemented real-time payment solutions to shrink the turnaround time between incoming and outgoing payments. Another study found that 81% of healthcare companies and 67% of finance and insurance businesses plan to invest in real-time payments.

“Companies are also backing up faster payments capabilities with the software and hardware needed to keep them running smoothly,” PYMNTS wrote in July. “Forty-eight percent of CFOs said their companies have invested in digitized working-capital programs, and 77% of companies that made such investments reported improvements as a result.”