You can find informative articles about credit management in construction on this page. The bottom line is that the construction industry largely relies on credit. Since most contractors furnish their labor and materials without paying up front, you could see why managing credit is super important if you work in construction.
The subject of credit management in construction covers a broad range of topics, such as construction accounting, monitoring cash flow and other KPIs, deciding which projects you want to make a bid on, which contractors you want to work with, drafting pay apps and invoices, and much much more. The payment chain on most construction projects is long, and when you look at any one of these topics paired with that fact, credit management and accounting in the construction industry gets complicated super fast.
Managing credit is no simple task, and many construction companies hire outside help just to keep everything in check. If you need help with credit management in the construction industry, you can browse the articles below to get started. Alternatively, you can take a look at the Expert Center page dedicated to construction management to further learn how to use credit management to get paid.
In this constantly-evolving industry, anyone responsible for a construction company’s credit operations should take advantage of the educational resources, certification, and networking opportunities. Credit management associations and industry trade groups...
As an accounting and human resources professional at a construction company, Joan Elmore has a lot on her plate. In fact, anyone working in billing, collections, or accounts receivable in...
What if you could identify potential problem customers before you started working for them? What if there was a way to tell which customers would be slow to pay ahead...
While on-site construction work continues in many states, COVID-19 has changed the game for construction businesses, forcing most office staff to work from home. Separated from their office resources, credit...
For subcontractors, getting a deposit payment on a project is a good way to improve cash flow and ensure that you can pay for your materials. For GCs, being asked...
There’s a battle for cash in construction during COVID-19, and those in charge of accounts receivables – credit managers, AR specialists, and office managers – are on the front lines....
How do you measure the success of your construction business? Is it just by profits, or how much cash you have in the bank? With the current volatility in the...
The coronavirus is affecting every facet of the US economy, especially the construction industry. With mandatory stay-at-home orders now in place across the country, construction in many places has literally...
Like any industry that relies heavily on extending credit to get business done, construction can be risky. Unless you’re in the 0.0001% of subcontractors who get paid up front and...
For contractors, a good credit management policy goes a long way to reducing the risk of non-payment. It should set guidelines for extending credit, and include a well-written collections policy...