According to a U.S. Bank study, as many as 82 percent of startups and small businesses fail due to poor cash flow management. Getting paid on time is a common pain point throughout the construction industry and every company needs a to maintain a sturdy cash flow to keep it afloat. The lifeblood of a construction company is a reliable cash flow. It’s what preserves the financial health of your company and its team. No business owner wants to spend his or her time working the finances only to cover the cost of the next project and barely keep operations going. Working capital should be just that—capital that keeps you working. But, often, business owners get cornered and can't get ahold of the funds to get out of a bad payment situation.
A 2015 study, conducted by cash flow optimization platform Fundbox, revealed that 64 percent of small businesses are paid late. Based on data entered into the accounting and bookkeeping systems of tens of thousands of SMBs, the Fundbox study revealed even more information about the common issue of late payments in business. Fundbox's analysis also shared a look at how net-terms and late payments contribute to poor cash flow: half of all net-30 invoices are paid late, while 45 percent of net-60 and 35 percent of net-90 terms are not paid on time.
The study went on to reveal that construction was one of the industries most affected by late payments. "The nature of B2B payments, and the common practice of net 30, 60, 90+ terms, puts incredible pressure on small businesses," said Jordan MacAvoy, VP of Marketing, Fundbox. "The problem is amplified in healthy, growing businesses where short-term expenses increase before additional income can be captured."
With this in mind, the CBO team partnered with Fundbox to present a free webinar, "5 Steps to Closing Cash Flow Gaps," to help business owners remedy the problem of cash flow gaps. The webinar will review five key steps to take control of cash flow, get paid faster and keep working capital on hand. The live event will feature a demonstration of an alternative financing solution that enables an advance on outstanding invoices and offers payment as soon as the next business day.
The live, online event, "5 Steps to Closing Cash Flow Gaps," will take place March 24, 2016, at 1 p.m. EST. Registration is free at http://www.constructionbusinessowner.com/webinars.
David Tulkin, senior business development manager at Fundbox, will present the live event, which includes a 45-minute presentation by Tulkin, followed by a 15-minute Q&A session.
Click here to register today and prepare your company for success.