Billd Unveils Pay App Advance Product To Ease Rising Labor Costs on Major Commercial Construction Projects | Financial Buzz

Billd Unveils Pay App Advance Product To Ease Rising Labor Costs on Major Commercial Construction Projects

Billd, the leading provider of material financing for commercial subcontractors, today announces the launch of a new product aimed at improving cash flow for subcontractors and facilitating more timely payments for labor, called Pay App Advance. Pay App Advance will combat rising labor costs in the construction industry and the taxing impact it’s had on subcontractor cash flow and overall liquidity of commercial construction projects.

Pay App Advance is the next step in Billd’s mission to provide subcontractors access to ample working capital needed to grow their business. The new product provides same-day financing to cover the cost of labor, eliminating the responsibility of the subcontractor to float their own capital to fund projects and pay their workforce. With the addition of Pay App Advance, Billd now provides commercial subcontractors with upfront access to financing for the two largest expenses on a project: materials and labor.

“The powerful combination of our Material Financing product with Pay App Advance gives subcontractors the resources and purchasing power they need to not only remain liquid throughout the entire project, but also to take control of their cash flow and grow their business,” said Chris Doyle, CEO of Billd. “Unfortunately, reliable, trustworthy and efficient financing alternatives simply haven’t been available to help these crucial businesses navigate these enduring challenges.”

“When we’re not paid on time, which can happen frequently, we’re required to come out of pocket for labor which can put an undue stress on the business,” said Derek Mateos, President of Matcon Construction of Tampa, Florida. “We’ve also felt the spike in labor costs, which adds to this challenge. Billd’s Pay App Advance has assisted in stabilizing cash flow and has been a great support tool for our recent success.”

Billd has taken major strides in the construction industry to provide financing terms that align with payment cycles. As the leading Material Financing company in the US, Billd has financed several hundred million dollars of materials, lowering the liquidity risk that General Contractors and Developers face on major construction projects. Since April of 2020, material and labor costs have skyrocketed, forcing subcontractors to pay out of pocket to get projects underway, increasing overall project risk. According to one recent study by AGC, material prices have risen 27.8%, yet bid prices have only risen by 5.2% over that same period. This gap has compressed margins and put an even greater strain on subcontractors, further magnifying their need for more financing options.

About Billd

Billd was started by Christopher Doyle and Jesse Weissburg, industry veterans in both construction and finance. Chris and Jesse were inspired to launch Billd to bring the financial power of Wall Street to the construction jobsite, allowing subcontractors to bypass project hurdles with access to upfront funds while enabling suppliers to sell more materials with less risk. For subcontractors who usually aren’t paid until more than 90 days from purchasing materials, Billd provides 120-day terms so they can stabilize cash flow and more effectively grow their businesses. With a deep understanding of the construction industry, Billd knows traditional credit metrics are poor predictors for risk in this vertical segment and has built a variety of industry-specific proprietary analytic tools to better assess risk in the construction industry.

Contacts

Jeremy Warren

jeremy.warren@anthonybarnum.com

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