Different forms of capital aren't free. Everyone knows that. But do you know how to determine what your working capital options truly cost you? Subcontractors should review these factors when calculating the true cost of capital: 📅 Days Sales Outstanding (DSO): Know how many days you’re fronting costs while waiting for payment. Calculate this metric for each GC. 💰 Financing Costs: When you don’t add financing charges into your bid, they eat into your bottom line. 💸 Opportunity Cost of Cash: Using your cash may seem like a free option, but it comes with a cost. You have to consider lost opportunities in investments, hires, equipment, and more. Think of it this way -> if you could cycle cash through your business twice as fast, how many more projects could you take on? Understanding these factors can help you optimize your capital deployment and protect your bottom line. For more information on how to account for the cost of capital to boost your profits, catch our July Subcontractor Meetup, available on demand at the link in the comments.
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You’re gonna want butt in chair, feet on ground for this. If you missed last week's Subcontractor Meetup, no need to fret. You can still learn the ins and outs of accounting for the cost of capital, including how to: ✏️ Develop strategies for deploying different forms of capital 💰 Calculate the cost of carrying slow payments 🔢 Create a process for including the cost of capital in your bids Check out the information we covered during our live discussion in the presentation below, and watch the full video on demand at the link in the comments section.
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Revolving Business Lines of Credit | Commercial Construction Loans for Material & Labor | Manufacturing Financing | E-commerce Loans
General and subcontractors can use our products alone or together to improve cash flow and get upfront working capital before their projects begin. Bid on commercial projects with confidence, without worrying about turning down work due to lack of funds. Use your signed commercial client contracts to get working capital for staffing and materials! #construction #projectfinance #contractbasedfinance #workingcapital #lineofcredit
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Tracking the right financial metrics can be the difference between a thriving business and a business headed for disaster. Check out the top 5 metrics every subcontractor should have their eye on. #ConstructionFinance #Subcontracting #CashFlowManagement #ConstructionCPAs https://buff.ly/3KZEDvQ
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Improving the transparency of cost & carbon data in construction through digitalisation and market disruption. The driving force behind Sterling Cost & Carbon, the next generation solution for cost & carbon estimating.
Albeit I’m approaching 60 and might consider myself a dinosaur, I still love driving modern cars and using the latest technology, both at work and at home. What continues to surprise me is why so many organisations cling to outdated tech that no longer evolves or supports their growth. If you're still relying on these old systems, you might as well be using a scale ruler and tracing paper for all the insight they provide. As an industry, we need to embrace SaaS-based technologies that are built for the future. Client demands and legislative changes are already pushing us in this direction, so why not lead the way now and set the standard for what’s to come?
Is your current estimating solution holding you back? It’s time to upgrade and take control of your cost and carbon estimates with Sterling! 💡 Sterling provides the flexibility and precision you need to win more profitable projects, while streamlining your estimating process. Ready to transform the way you work? 🚀 👉 Book a demo today! https://lnkd.in/gir88G4N #ConstructionEstimating #CostEstimating #SustainableConstruction #DigitalTransformation #SterlingSolutions
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Get your Bid Bonds, Performance Bonds, and Advance Payment Guarantees approved in just 30 minutes, ensuring your projects stay on track without delays. Enjoy fast, reliable financial backing to meet all your contractual needs with ease! 0707034582 #ContractorsLife #SupplierSolutions #BusinessGrowth #EngineeringExcellence #ConstructionSuccess #SupplyChainManagement #ProjectFunding #BusinessSolutions #EngineeringInnovation #ContractorSupport #BuildingTheFuture #BusinessDevelopment #ProcurementPower #EfficientEngineering #SupplierNetwork
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Is your current estimating solution holding you back? It’s time to upgrade and take control of your cost and carbon estimates with Sterling! 💡 Sterling provides the flexibility and precision you need to win more profitable projects, while streamlining your estimating process. Ready to transform the way you work? 🚀 👉 Book a demo today! https://lnkd.in/gir88G4N #ConstructionEstimating #CostEstimating #SustainableConstruction #DigitalTransformation #SterlingSolutions
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Most subcontractors worry about the impact of outside working capital on their profit margins. Knowing how to account for the cost of your capital is the best way to gain control. In our July Subcontractor Meetup, we explored why understanding the cost of your capital isn't just a nice-to-know but a must-have to maintain your profits. For our final Meetup of the year, we're going to walk you through the tactical steps to take to incorporate these practices into your business. On November 19, construction consultant and fractional CFO Josh Luebker will provide a hands-on, virtual session to cover how to: - Assess your monthly cost of capital - Apply project-specific costs directly to your bids - Determine which capital options work best for your business Save your spot for our final meetup of the year at the link in the comments section. If you missed part our first session on accounting for the cost of capital, watch it live on demand now.
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When you’re able to build partnerships and categorize your GC connections, you’ll spend much less time looking for work and more time doing projects that are right for your company. STACK has tools to make it easier, faster, and more efficient to be a better partner with: -Industry-leading text search 🔍 -Copy Project to quickly create estimate options 🔢 -Label Groups to identify any problem areas 🏷️ -Accurate pricing and staffing decisions with STACK’s Cost Database 💲 -Fast, flexible estimating worksheets 🖥️ Read more ➡️ https://hubs.la/Q02nYlHD0 #constructiontechnology #construction #preconstruction #digitaltransformation
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How many months of cash does your business have? The standard rule of thumb is 3-6 months. But, according to the 2024 National Subcontractor Market Report, most subcontractors have less than that for their businesses - 92 days. Despite these challenges, subs continue to be the financial backbone of construction, funding projects well in advance of receiving their payments. Want to discover what tools other subs are using to help build their working capital? Download the 2024 National Subcontractor Market Report at the link in the comments to learn more. 👇
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Subcontractors in the Construction Sector: Are you prepared? In this interview, Tim Wilkinson shares crucial insights into the challenges facing subcontractors today. Learn how to stay on top of your finances, monitor warning signs, and explore funding options to keep your projects moving forward. Watch now to discover practical advice on managing cash flow and improving working capital! #ConstructionIndustry #Subcontractors #FinancialSolutions #CashFlow #ConstructionChallenges #MHABrokerExcellence
https://billd.com/webinar/increase-profit-margins-by-accounting-for-the-cost-of-working-capital/