The construction industries most problematic catch 22
“You need money to start jobs, you need to do jobs to make money.”
This paradox creates a big problem for the average subcontractor when planning for future jobs or expansion. It puts them in a restrictive position, especially when looking to make the leap into having the capacity to complete larger, or multiple jobs at once. Even if the pipeline of jobs are full, often subs are waiting for payment, which can inhibit the functioning of their business and stall them for future jobs. This is clearly problematic and requires the assistance of lending institutions. Access to funding exists, but proves to not be ideal for this specific industry. Programs like Invoice Factoring and Lines of credit have proven to be supplementary financing that aids businesses in the construction space but never had been a solid solution. Often times credit lines are tapped out, or capital is needed before invoices have been written.