Payments

Construction industry gains access to credit cards with Flexbase

Automated payment platform Flexbase announced Thursday its now offering a credit card specifically for construction companies, with small and mid-size businesses in mind. According to a release, the Flexbase Card is available immediately nationwide and will offer up to 60 days-interest-free credit with no personal guarantee requirement and no security deposit.

For Flexbase, the new offering aims to assist smaller and mid-sized construction companies that made need the accelerated cash-flow to compete and grow. Any construction company can apply for the card; however, those who use it in tandem with the Flexbase platform will have access to financial data and planning, potentially becoming eligible to borrow larger credit amounts over time.

“For years, slow payments and cash-flow have been the construction industry’s biggest problem, resulting in many SMB construction companies stagnating or outright failing. In fact, a large percentage of these companies fail within the first few years of operation, making it increasingly difficult for others, including newcomers, to secure credit from banks,” says Zaid Rahman, Founder and CEO of Flexbase.

In 2018, it took contractors an average of 83 days to get paid, according to an annual PWC report. That number increased from 74 days in 2017. All the while, construction workers are already working against tightened supply chains and increased goods prices from the pandemic.

According to the Bureau of Labor Statistics’ latest Producer Price Index (PPI) report, the prices of goods used in residential construction (excluding energy) climbed 0.8% in October. Building material prices have increased 12.2% year to date, after climbing 4.5% over the same period in 2020, the National Association of Home Builders reported.

“SMB construction companies should not be failing in a booming market. By supercharging their access to capital, we are fulfilling the needs of a severely underbanked and credit invisible market segment,” continues Rahman.

Launched in October of 2020, Flexbase operates as an automated payment platform for contractors and the construction industry. The company snapped up its $2.5 million pre-seed fundraising round in May with intent to grow its platform and workforce with the cash injection.

According to Flexbase, the free platform can save construction companies “thousands of dollars each month”, and frees up dozens of hours that are otherwise spent reconciling and categorizing invoices. The automated system also integrates freely with industry prevalent software tools like The automated payment system integrates seamlessly with all of the software tools Quickbooks, Xero, Zapier and Sage.

“With our card offering, we are going to democratize access to capital for construction companies of all sizes, and bring equal opportunity to everyone,” said Rahman.

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