Billd’s Post

When it comes to financing, Subcontractors are often overlooked. The risks associated with lending to these vital players are misunderstood or—worse—unknown. Traditional lending models don’t fit—they’re built for known risks like FICO scores in consumer lending, not the unique challenges of our industry. This gap in understanding makes financing inefficient and costly for Subcontractors. Because lenders cannot accurately assess this risk, they tend to overprice it, resulting in inflated interest rates and inefficiencies. At Billd, our mission is to bridge this gap by quantifying the risk associated with Subcontractors in the construction industry. Just as FICO scores have revolutionized consumer lending by giving a clear picture of risk, we’re developing a predictive model that tells the true risk of working capital financing in construction. By building a precise risk profile, we’re able to measure the real risk—not inflated guesses. This gives Subcontractors a better shot at securing more favorable loan rates that reflect actual risk, not fear of the unknown. As we continue to build and refine our models, we are showing the capital markets that Subcontractor lending isn’t as risky as they thought. The result? Lower borrowing costs for Subcontractors, a more stable construction industry, and smarter capital allocation throughout the supply chain. The industry’s on the verge of a major shift. Billd is driving that change by turning unknown risks into known ones and putting money back into the hands of Subcontractors where it belongs. To learn more about Billd's mission to better quantify risk and reduce the cost of financing for Subcontractors, visit the link in the comments section. 

🚨 Last call to register! 🚨 Join us tomorrow, October 1, at 12pm central for our live Subcontractor Meetup. You won't want to miss this conversation between StruktureOne, an Austin-based subcontractor, and BayWa r.e. Solar Distribution / US a supplier in the renewable energy space, as they discuss: ⚠️ The factors that can strain subcontractor-supplier relationships ✅ Solutions to solve common challenges 🤝 How strong relationships benefit everyone There's only a few spots left so save your seat today. Register now at the link in the comments.

Your business may have a plan to expand your working capital capacity, such as growing lines of credit, extending supplier terms, or increasing credit card lines. But do you have a plan for how and when to use each form of capital? Most subs don't. And without a plan for how to strategically deploy your working capital, you could find yourself in cash flow challenges, missing out on potential opportunities, and hindering your chances for growth. It doesn't have to be this way. In a recent Subcontractor Meetup, Travis Mayor, MBA and Jerry Aliberti discussed how to develop a capital deployment strategy. Here are their top three recommendations when creating or updating a strategy for your business: 💭 Get intentional when choosing a payment option: You should always have a clear plan for how and when to use each form of capital and the expected return associated with the expense. 📶 Use capital in order from least to most flexible: Using flexible forms of capital first may seem intuitive, given how easy or relatively cheap they are to use. However, it's better to use your more rigid options like supplier terms or material financing early, leaving ample runway in your cash and lines of credit. 💲 Deploy capital for the right kind of work: If the work you’re bidding isn’t as profitable as expected, then even the right deployment strategy can’t make that a smart use of working capital or resources. To learn more about these tried and true principles, visit the link in the comments section. 

We're hosting a discussion between a subcontractor and supplier that you do NOT want to miss. As a subcontractor, materials are one of your biggest expenses. But one of the things that ends up affecting your material pricing the most ➡️ relationships. We'll cover how improving relationships can create: 🚀 Increased profitability and growth  ✅️ Improved project efficiency ↗ Increased supply chain consistency 💰 More favorable terms   So clear your calendar for October 1 at noon central and register at the link in the comments today. 

The next installment of Billd's Subcontractor Meetup series is here! 🎉 Join us Tuesday, October 1, for a live discussion on how strong relationships between subcontractors and suppliers can help drive growth. This Meetup will feature Michael Herndon and Jared Craddock of StruktureOne, an Austin-based steel subcontractor, and Josh Tinaglia of BayWa r.e. Americas, a supplier in the renewable energy space. Some of the topics they'll discuss include:  🚩The factors that can strain subcontractor-supplier relationships 💡 Solutions to solve common challenges both parties face 🤝 The mutual benefits a healthy relationship can provide subs and suppliers Space is limited so save your spot today❗Register now at the link in the comments.

"As you're growing, you're constantly behind the ball. It feels like you're always pushing cash around." This was the reality for StruktureOne, an Austin-based steel subcontractor, who was bogged down by 12-to-16-week material lead times and delayed payments from GCs before working with Billd. These factors, coupled with their inflexible supplier terms and credit limits, not only made it difficult to stabilize their cash flow, but also prevented them from taking on bigger projects. But partnering with Billd changed everything. Billd created a custom solution for StruktureOne, giving them the financial flexibility their supplier terms couldn’t. They not only had a longer timeframe to pay for materials, but they could also start working with new suppliers that previously had limited terms. Being able to work with a wider array of suppliers bailed StruktureOne out of schedule pinches and helped them deliver on-time, every time for their customers. StruktureOne is now on track for 300% revenue growth over the next five years thanks in part to their additional working capital options and stronger relationships with their GCs. For more information on StruktureOne and how working with Billd helped them gain control of their cash flow, strengthen their GC relationships, and work with new suppliers, visit the link in the comments. 

Your line of credit shouldn't be your first line of defense when it comes to covering your expenses. Unfortunately, this is the reality for most subs. And it's something we've been seeing more frequently in our customer meetings at Billd. During our July Subcontractor Meetup, Travis Mayor, MBA outlined the costs—and risk—associated with leaning too heavily on a line of credit. With the going interest rates for LOCs often hovering over 10%, it's even more important to create responsible strategies for how to use this form of capital. That includes incorporating the cost associated with using a LOC on any project-specific bids. To learn more about considerations for using your LOC, watch the video recap below. You can watch the full Meetup on demand at the link available in the comment section. 

➡️ Price volatility for materials on nationwide projects. ➡️ Constantly fronting material payments 12 to 16 weeks before they arrived onsite. ➡️ Inflexible supplier terms. Sound familiar? This was the reality StruktureOne founders Michael Herndon and Jarred Craddock faced every day. The steel subcontractor always had their cash tied up in material payments, making it difficult for them to confidently take on larger projects. That was before an industry peer connected them with Billd, who provided a financial solution that was better aligned with StruktureOne's timelines. “It made our lives a lot easier. We were able to better manage cash flow on certain jobs.” By using Billd, StruktureOne gained the financial flexibility to confidently bid on larger projects, empowering them to build relationships with new GCs. "Having Billd in our corner made us more bullish on chasing projects.” To learn more about StruktureOne and other ways Billd has created solutions for our customers, visit the link in the comments section.

📣 The Billd team is looking to expand our crew! We’re committed to disrupting a $1.4 trillion industry and need the right team in place to do it. That's why we're hiring for key roles throughout almost every department. Some of our open positions include: - VP of Engineering - VP of People Operations - Revenue Operations Manager - Territory Managers Some of the perks to working at Billd include flexible PTO, parental and family leave, and a dog-friendly workspace in our Austin headquarters. If you're driven to empower subs to do the best work of their lives, check out the link in the comments to see all our open positions.

As a sub, picking the right or wrong partners to work with can make or break your business. So we tapped Gianluca Pascale, C.Tech P.GSC, a leading GC, for some insider tips on how to identify effective, collaborative contractors. ✅ For the full guide and examples that will help you execute on his strategy, visit the link in the comments.