Flexbase Is transforming construction lending head-on with the industry’s first new credit card, which offers interest-free lending for up to 60 days.
The company, which develops automated payment tools for contractors and the construction industry, was founded by Zaid Rahman and Hadi Solh for small businesses.
Rahman and Solh of Theil Fellow grew up in architects and talked to them at a supper on cash flow issues. Rahman’s father, who ran a construction company in Dubai, suffered a heart attack when he didn’t pay his customers millions of dollars invoices. Rahman and Solh joined together to form Flexbase, giving businesses easy access to capital and avoiding cash flow issues.
“Most construction companies are broken or once away,” Rahman told TechCrunch. “One of those reasons is that most clients don’t like to pay on time. The other is that banks don’t like construction companies because of their cash flow issues, so companies are short-term. It’s unlikely to get capital, which is also why they often go bankrupt. “
The first Flexbase Card to be launched in Houston can be applied for by any construction company, but co-founders, those who use the card with other Flexbase tools, have a deeper understanding of the company’s financial data and more debt. Said he was eligible to do so. Credit amount.
Solh called the 60-day funding an industry “game changer” that typically takes more than 100 days to get paid. One of the drivers is that a typical invoice can be one or two pages, while a construction invoice can be 50 to 100 pages, including state and county compliance documents. Rahman said the entire invoice could be rejected if there was even one missing item.
By automating expense management, Flexbase can reduce the time it takes for invoices to flow between accounts receivable and accounts payable, reducing the time to payment by 50 days.
“When it comes to capital, you can’t value a construction company like any other business, but underwriting gives the company enough credit to grow the business,” Rahman added. .. “We provide enough credit in 2 minutes to expand the project type and client base.”
Flexbase unveils construction industry’s first credit card – TechCrunch Source link Flexbase unveils construction industry’s first credit card – TechCrunch
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