How Funding Material Purchases Can Expedite Your Cash Flow

Watch this webinar to learn:

• How to level out cash flow from one construction project to the next or take on multiple projects at a time
• How to reduce risk to your business while expanding
• About a modern payment solution that eliminates the financial strain of purchasing materials

Webinar Expert

Jesse Weissburg

Co-founder and SVP, Business Development
Billd

Michael Williams

Manager of Financial Services
Levelset
View Michael’s Expert Profile

Full Transcript

Michael:
I’d like to thank everyone for, for joining us today for this webinar. I’m really excited about this one. It’s with Billd who is a really good partner of ours, and we have Jesse Weissburg on the call. He’s going to be your host for today to go through Billd and a little bit of what they do and how financing materials can help improve your cashflow. So without further ado, I’ll kick it over to Jesse. But before I do, I’d want to invite everyone to ask any questions along the way, you can type in your questions using the chat window below, or the question and answer window below. If we can’t get to the questions during the middle of the presentation, then we’ll save 15 minutes or so towards the end to answer any questions that you may have. So without further ado, Jesse, over to you.

Jesse:
Yeah. Thanks, Michael. And I do want to mention not only are we a partner of Levelset’s, we’re also a customer and I’ve been working with Levelset for the past few years. So I really appreciate, you know, Michael you and team for having us on here and giving us the opportunity to, to chat with your you know, your customers and followers. And one last note, please you know, Michael mentioned asking questions, you know, I certainly appreciate the opportunity to make this a bit more interactive even though everyone is virtual. So we will have some time at the end, but do not feel bashful to fire over a few questions to Michael throughout the presentation.

Jesse:
All right. So I’ll first just give you a little overview about what we’re gonna talk today, and then I’ll open up and give you a little background on myself and and Billd. So you know, especially with everything that’s going on in today’s economy, you know, the ability to cash flow your business is of the utmost importance. So you know, we’re gonna talk today about some of the challenges that contractors face and some of the opportunities that you have with financing really to help level your cashflow out and, and grow your business in a predictable and, and responsible way, you know, so you’re not caught later in the year, you know, looking back and in a position where, you know, you are having trouble with funds, you know, planning in advance is the utmost important. So that’s something we’re going to talk about today and the ability to take on certain projects with, and without financing and how that impacts your cashflow.

Jesse:
So just a little bit about myself, I am one of the cofounders and oversee our sales business development and and marketing efforts over at Billd. We started Billd in in 2018. So we’re still relatively new company we’re based in Austin, Texas. And we’re really focused on helping contractors purchase and finance their materials for mostly commercial construction. We also do some in the residential space. And so we have our main office here in Austin. We have a small office in, in Arizona, and we currently operate or supply materials and financing, I think in roughly 30 States or 40 States, excuse me, throughout the country. So pretty wide footprint. And yeah, again, look forward to sharing a bit more about what we do and, and how how you guys can leverage financing today.

Jesse:
So first, you know, let’s kick this off, just talking about the construction payment cycle. I’m sure everyone on the line here is intimately familiar with this. And some of the challenges I’m going to walk through on the next slide, but, you know, this is a stat taken directly from price Waterhouse Cooper. It takes contractors about 84 days to get paid from the date where your, you know, first, either purchasing materials or starting labor on a project to the point where you’re actually getting paid for that work. And, you know, this is something that everyone is kind of accustomed to, but the reality is this is kind of a specific to construction. Most industries do not face this long of a lag time between performing work and getting paid for that work. So it certainly is magnified with, with construction. And you know, there, aren’t a lot of tools out there to leverage in order to manage this, but there are a few which we’ll chat about today. So, you know,

Jesse:
84 days on average, you know, that goes hand in hand with just slow payments, right? Construction is notorious for having slow payments between, you know, performing the work, submitting your pay apps, did the GC, the GC has to go to their property owner customer to have those you know, to get everything approved. And then they’re going to their bank, or, you know, financial institution to actually approve those slow funds back to the property owner, to the GC and then in your pocket. So that takes some time. And depending on the type of project, depending on the, the, the, the GC sometimes, you know, that can be as short as 30 days, but on average, you know, 60, 90 days is kind of what we’re working with. And that puts a lot of strain on your cashflow because you’re coming out of pocket upfront to purchase the materials and and to fund the labor, right? So, you know, supplier terms, while they were great, in some instances, you know, if you are able to receive 30 day terms and you get paid in 30 days, then you really have no problem, but most instances, that’s not how it plays out, right? So maybe you have 30 day terms with your supplier. You get paid in 45, 60 days. Well, what happens with your supplier when you pay them back in 45 or 60 days? What happens if you have a few different projects going on with that supplier? And and you’re facing delays with the GC, maybe you’ve been a long time customer or the supplier, and you’re able to leverage some good will, but in other instances, you know, that can really put some strain on, on your business. So supplier terms work great when the funds are, are moving you know, moving at the appropriate speed, you know, I can tell you, and please don’t don’t dock me for this.

Jesse:
But earlier in my career, for a period of time, I worked for bank of America and I was a commercial. I was in commercial lending at bank of America. And I worked with small to midsize businesses and help provide different cashflow tools and, and loans and lines of credit. And I can tell you this, we did not have a very large appetite for, for construction while the bank would provide, you know, project based financing for the overall project. There, wasn’t a big appetite to provide, you know, loans or lines of credit. Even we’re talking about, you know, one to $500,000 lines of credit to contractors. We just viewed it as a very risky business. We couldn’t get comfortable with it. And I can dive into that deeper, but I just know, you know, across the board, banks aren’t necessarily knocking on your doors to provide financing.

Jesse:
Smaller community banks are a bit more open to it, especially if you’ve had a long standing, you know, deposit relationship there. But for the most part, you know, banks are somewhat steering clear which makes just getting financing somewhat challenging in the traditional sense. But there are a few other options that we’ll talk about here in about two slides, you know, as a result of a few of the things we just walked through, it’s just tough to grow, right? I mean, how do you end up growing? You have to, you have to grow from cashflow. That means you have to have cash from previous projects. Well, what happens when you have the opportunity to take on and bid a few additional projects, or maybe your typically project contract amount is call it 30 to 40 K and you have an opportunity sitting in front of you for $250,000.

Jesse:
What do you do? Do you potentially put the business at risk taking on this really large project that looks super enticing and you know, you’re going to get paid on it, but it’s just a matter of when you’re going to get paid. And when you’re going to get paid is going to impact your ability to float all of your other obligations, right? It’s not just the materials and the labor on this project. You also have overhead, you probably have some equipment. So there are a lot of other expenses that come into play beyond just that one project.

Jesse:
So let’s talk a little bit about the benefits of, of financing you know, without financing, you’re really beholden to your customer and whenever they release payment to. So we talked about that payment cycle on average taking, you know, 80 to 90 days, depending on the type of construction. What financing really allows you to do is to take control of your cashflow and flip that payment cycle upside down. So while, you know, if you weren’t operating under some sort of financing, you would have to pay cash up front, let’s say for materials and labor, that’s a big investment out of your pocket just to mobilize the project. And you’re not going to get paid for another 60 or 90 days. So you have to float that. Additionally with financing, what it allows you to do is really level out cash flow throughout the year and from project to project. So, you know, let’s say you have, I’m sure most of you, your busy season is, you know, between the spring and the fall, you might need to take out some financing just during the busy time of year, because you’re taking on more projects and cash is tight. You don’t necessarily need financing throughout the entire year, but it helps bridge the gap between certain times of year.

Jesse:
And this really goes hand in hand with the next point, you know, comfortably take on more projects. It’s always, it’s always our goal to grow, to grow our businesses, right. But you want to make sure you have the ability to do so. And you do it in a responsible way that isn’t putting strains on other areas of the business. So by financing, you know, multiple projects at a given time, it allows you to spread out your cash amongst those two, three, four or five projects. So you’re not investing cash, you know, in just one project and the overhead and the materials and labor associated with that project, bigger projects, super enticing, but it can tie up a bunch of cash, right? You know, you need to make sure when you go into those large projects that you have a safety net there, and I can tell you if you don’t have her way too many horror stories about one large project taking down the entire business, because they just weren’t prepared for some of the delays that can happen and are associated with those larger, more lucrative projects.

Jesse:
And, you know, these are the type of projects that can really catapult your business. And so you certainly don’t want to turn them down financing, maybe just the large projects and leaving your typical, you know, smaller projects and funding those from cashflow or funding. Those with supplier terms that could make all the sense in the world for your business. And you’re only financing the larger projects this last point here. It’s, it really is kind of summarizing all of these others, but I’m sure all of you that are listening today, you want to be building the businesses that are around for the next five, 10, 15 years. Maybe you want to pass these businesses on to your family. One day, it’s more important to grow a long term that’s excuse me, sustainable, sustainable business, rather than get that quick hit and maximize your pro your your profit. You want to build your business for the long term and the way to do so is by making sure that you have finance partners and financing available. So you can weather those gaps in your cashflow and build your business and predictable way.

Jesse:
So with that, let’s talk a bit more about some of the different types of financing out there that are available. Some of these, you’re probably very familiar with some of these you might not be as familiar with, there’s a use case for each of these, and they all come with pluses and minuses. So I’m going to jump around a little bit. I’m going to first talk about lines of credit, which is, you know, towards the middle top there, this is your traditional bank financing. And I would say in the event that you are able to get approved for a line of credit with your local bank. This is definitely going to be your cheapest cost of capital relative to the other options here on the list. And actually, let me take a step back. It’s one comment I wanted to make about financing in general. I would make sure today, tomorrow, you know, in the near future, if you’re interested in financing, you want to set it up when you don’t need it, because when you need financing, that’s when your financials, they won’t look as strong. You’re not going to look as favorable to the finance company. So I always like to make the point you want to, you want to get approved. You want to reach out, you want to kick the tires and partner with a finance company or several when you don’t need it, because when you need it, it’s likely too late, especially during an environment that we find ourselves in with with COVID-19. So I did want to throw that out there before I, before I forgot. So lines of credit you know, they’re great in the sense that they’re meant to bridge the gap with cashflow, you finance your receivables, relatively cheap capital.

Jesse:
You’re likely going to have some stipulations with the bank that you’ll need to adhere to certain covenants that you’ll need to follow and submit, you know, financial documents to the bank. Every so often, a few years of tax returns. These take some time to get set up. It can be, you know, 30 to 60 days right now, most banks aren’t extending lines of credit. So they’re pretty tough to come by. Whether you’re, I’m talking about outside of construction right now, within construction, I would say, this is, I don’t want to say impossible, but it’s going to be extremely difficult to go out to a bank and get a line of credit. Right now credit cards, I’m sure everyone has a credit card in their wallet. You know, credit cards can be used to float your business when it comes to purchasing materials and tools, but really what you want your credit cards available is really to float your business for everyday expenses.

Jesse:
When you start running up charges for materials, for example, that can put the business at risk when you need to make all of your other purchases and gas and tools and, and smaller purchases that you, that you need to make. So, you know, typically you want to have a credit card for sure, but you want to make sure you’re using it more. So for your every day purchases equipment financing, you know, if anyone out there has equipment this is a great way to spread out those payments over the course of a few years. So if you’re gonna be you know, financing a bulldozer, you know, trucks, whatever, you can spread that out, you know, three, five, seven years, depending on the type of equipment, cause those are large purchases, you know, 50 hundreds, potentially several hundred thousand dollars. And coming out of pocket upfront, just doesn’t make a ton of sense, spreading that out over the course of three, five, seven years.

Jesse:
So you’re not putting that stress on the businesses is really the way to go invoice factoring. You know, this is one, it kind of has a little bit of a bad rap, but there is a place for it in the event that, you know, a line of credit isn’t really available, at least with invoice factoring, you can go and perform the work and and kind of get an advancement on, on that work, right? So let’s say you have a project contract, you perform $50,000 worth of work. You had the invoice in hand, you can take that and get an advance of maybe 80 or 85% of that $50,000 contract. So you don’t have to wait the 60 or 90 days from your customer to actually collect on it. You can get paid the majority of that upfront and make sure you have the cash to go and mobilize, you know, your next, your next project. Supplier terms, we’ve already chatted about this. You know, typical supplier terms are around 30 days. You know, some suppliers obviously will require cash up front, you know, Cod, maybe they have like a net 10, but typical supplier terms are 30 days, some law for 45 to 60 days for their long standing customers. And again, supplier terms work great when you actually get paid within 30 days and can pay off the supplier. But ultimately if you can’t pay the supplier back in 30 days, you know, you’re then treating your supplier as, as your bank at that point. And they’re floating the cash until you can actually pay them back, which can put a lot of stress on the relationship with your supplier the last bucket here, and this is really a new type of financing. It’s one that we’ve developed here at build, which is material purchase financing. So this is, you know, the ability to go and purchase materials for. So let’s say we have a hundred thousand dollar project. We need to purchase $30,000 worth of materials, the ability to finance that over the course of four months and just make weekly payments along the way until you get paid back by the property owner and can pay off the purchase. So you’re just delaying that upfront purchase of the materials and can really take control of your cashflow. Michael, any questions so far? Am I still, still good?

Michael:
Yeah, I actually have one question. I, I do need to clarify from the person that asked the question. So I may jump in here in a second and ask that question. Let me reply to them real quick and I’ll jump in in a second.

Jesse:
Okay, well I’m just gonna mention a few customer testimonials that we have, you know, a hundred percent of our customers have claim to grow their business with material purchase financing. 93% have been able to take on larger projects with, with financing. And you know, this is, this is something we routinely hear contractor you know, has been growing their business from cashflow. Maybe they started the business five years ago. They’ve had to pass on X number of projects over the year because they just weren’t willing to take on the risk of going after that larger project that could put a strain on, on the business. And by working with someone like Billd or getting a line of credit or some sort of financing, they were then able to grow their business and really take it to the next level.

Michael:
Hey, Jesse sorry to jump in here in the middle. I’m just gonna take a stab at this question because it is one that I hear quite often. The question is: what companies will look at invoice factoring favorably? The thing I was trying to clarify is whether or not they’re asking which factoring companies or hiring parties let’s take the latter, because I know that a big concern with invoice factoring is how will my customer look at me if I’m factoring my invoices. So from your perspective can you can you address that question? And, and then they actually just replied with said, do banks look at invoice factoring, or how do we find that entity who will do loans on invoice factoring? So to tackle from both sides, the hiring party and the, uh, and the finance companies.

Jesse:
Yup. Yeah. Great question. So I’ll start with the I’ll start with the finance company. So the traditional banks, your neighborhood bank, or community banks, your banks of bank of America’s of the world. They do not offer factoring typically. So while I was at bank of America, if we weren’t able to approve someone for a line of credit, we worked with a, a national company who offered factoring and we would introduce that customer to the factor so they could hopefully negotiate an agreement with, with the factor. Factoring companies, typically they don’t, they don’t require financials. Ureally they’re looking at the invoice as the collateral. So they’re looking at the project, the invoice, and they’re looking at the, your customer and they’re underwriting your customer and their ability to pay the,uthe invoice.

Jesse:
So most factoring companies, there are, there are a lot out there online, most of, you know, there are a lot of different FinTech factoring companies out there. If you do a quick Google search, just factoring, you know, FinTech or construction factoring, you’ll be able to discover a number, a number of those out there. What I would do when I perform that research, I would, I would look at the customer testimonials because what it boils down to is what, how, how will your customer be impacted working by you working with the factoring company? Because the finance company, they will have to reach out and connect with your customer. So how are they handling those conversations? So the questions I would ask them is what level of involvement will you have with my customer? How does that communication generally work? Am I involved with it and really make sure that that’s spelled out from the get, go and do your homework just with any, you know, potential vendor that you’re going to work with, you know, go look at reviews online see what information you can dig out, ask them for you know, references from other customers.

Jesse:
Great question. So at this point in the presentation, we’re actually gonna flip over to an Excel. Give me one second here, Make sure I maximize this for the screen. I just have to move it from one monitor over to the other.

Jesse:
So let me do it, one second. One thing here. So I, this is, this is a, a, an Excel model. Hopefully it doesn’t look too scary out there for you guys. I’m going to walk you through it. And really what I want to kind of walk through is we have the opportunity. We’re gonna walk through an example of where we have the opportunity to take on a project. And what I want to walk through with you all is what that looks like with, and without financing and how much cash would I need in order to start this project with and without financing. So you can kind of prepare yourselves and make sure that if you were going to take on a project, you would have enough cash to do so. So there are a few assumptions that I have here that likely are different depending on your your trade and the size of your business, that really is going to flow through to this to this model. So I’m assuming on this project I have for my materials that are gonna cost me roughly 40%, My labor costs are about 35%.

Jesse:
Overhead is 10%, and I’m going to have a profit margin of about 15%. So, you know, these numbers are going to be different for everyone’s business, but we’re gonna use this as a baseline as I walked through this

Jesse:
So let’s go ahead and assume I’m bidding on a $500,000 project value. And it’s going to take me about three months to complete this project in total. I’m gonna need about, hold on here. I left out a zero. I’m going to need about $200,000 in materials. So what we’re doing here is we’re assuming a 40% cost of materials on the $500,000 project contract value. So I’m going to need about $200,000 in materials over the course of this project, I’m going to spend about $175,000 on labor, and I’m going to spend about $50,000 in overhead. So, you know, all of these costs are going to be spread out amongst these three months. That’s gonna take me to complete the project and I’ll walk through that here in a second. So in this first month, when we’re getting ready to purchase the materials and start, you know, the first phase of work, I’m assuming we’re going to spend about a third of the material.

Jesse:
So about a third of this $200,000 in materials we’re gonna spend in month one. So whether I’m paying cash upfront or I’m paying my supplier in 30 days, we’re spending about $66,000 on materials. By the end of the month, we’re also going to need to spend about $60,000 in labor that was performed in that month. And then the overhead is about $16,000 of the, of the $50,000 that weren’t spending overhead overall the, in the three months. So that means in month one, we’re going to need to spend about $140,000 in order to start this project. So that’s gonna come out of our pocket, whether it’s, you know, day, zero or day 30 in that first month, we’re in a spend $140,000. Going into month two… So we’ve already spent the $140,000. We’re going to have those exact same expenses as month one, right? So we’re because we’re going to perform the work over the three months.

Jesse:
It’s an equal amount that we’re spending over the three month period. So $66,000 again on materials, $58,000 on labor, 60 $16,000 on overhead. So we had $141,000 that we spent going into the month. We have to spend another hundred and $41,000. So going into the end of the second month, we spent $280,000. I’m assuming here, it’s gonna take us about 90 days to get paid. So you can see we’re not getting paid anything on this contract value. And in month one or month two, we’re actually not going to realize any revenue until month three. So in month three, we have the same expense. Again, the expenses, again, I’m not going to walk through this. So we started out going into the month. We spent $280,000 on material, labor and overhead, but we finally had some cash coming in the door. We have $166,000 of cash coming in.

Jesse:
I’m assuming we’re going to collect on this and equal amounts over three months. So we have $166,000 coming in. But then again, we have the last, the third phase of the project we’re going to need to, you know, secure more materials, labor, and then overhead. So when you go through our starting balance of 280,000, we have $166,000 in cash coming in, but then we’re going to have to pay out this last phase of expenses. We’re going to net out at $260,000 here. So at this point we’re done the project we’ve got paid on, on a third of the project, so we have no more expenses associated with it. And then we’re going to have two more months of payments coming in for the work that we’ve performed. So once we have this second payment of the 166,000 that’s, that puts us you know, we’re still in the hole 90,000.

Jesse:
And then once we have our last payment of $166,000 coming in in this last month, we finally get our profit, our profit on this project. Again, we assumed a profit margin of 15% on the $500,000. So we’re going to profit $75,000. This profit, you know, we’re not going to realize it to last month. So a quick summary without financing at any given time going into this project, I’ll need to make sure that I have about $280,000 in the bank to float this $500,000 project. And I’m going to net out about, you know, a profit of about $75,000. So this is a, this is an example of, of, you know, obviously cash flow in this project without financing, and next we’ll walk through the project with financing and we’ll see how that impacts the cash required to start the project and how that will affect our our bottom line, our profit, before I move forward, I know I walked through that quickly. I just want to check in and see if there are any questions.

Michael:
It doesn’t look like there’s any questions, if anyone has any ask them and I’ll Jesse, I’ll stop you if we get any questions.

Jesse:
Okay. So I’m gonna revert, actually, I’m going to leave this at 500,000. I’m going to toggle this using financing. So we currently have this on no, I’m going to flip this over to yes. And we’re going to see how this is going to impact the numbers here. So I’m still assuming the same cost of materials, the labor, the overhead, all of these figures are the same. It’s going to take us about three months to complete the work. Again, nothing has changed other than we are now delaying our… We’re still gonna have to purchase the materials and pay for the labor, you know, in month one, but since we’re financing the material and the labors, and I do want to clarify we’re financing both in this example, not just the materials. So I, I the way that we’ve designed this is, you know, if you’re able to finance both material and labor, how will this affect the cashflow on, on the project?

Jesse:
So if we’re able to delay how we’re actually paying the materials and the labor, we’re assuming we’re not going to have to actually pay the full principle balance or a partial principal balance on either one of those until month four, we are going to have interest along the way that we’ll have to pay. And still we, until we actually pay the material and labor financing off, but we don’t have to come out of pocket in the first, second or third month, even though we’re going to pay them, the supplier’s going to get paid or workforce is going to get paid. You know, we’re just going to pay interest on that. And we’re not going to actually make principal payments on that until month four. So in month one, we still have to pay our overhead and there is a cost to financing, right? Money money isn’t free.

Jesse:
So there is a cost I’m assuming about a 2% monthly interest rate for the material on the labors, so that, you know, we’re going to be basically financing. The 60 we’re financing, 66,058. So this is about what is this 125 K is about what we’re financing in in the first month. And the interest charges associated with that are $1,300. We still would have to come out of pocket, obviously to cover the overhead and the finance charge. And that’s about $18,000. So month 2, we have an $18,000 balance that we’ve covered thus far, we’re going to have to cover the overhead overhead again in month two, and then the finance charges have stepped up because we have additional materials and labor that we’ve had to disperse funds for in the second month that we have financed. So the interest has stepped up.

Jesse:
It’s basically doubled because now we have twice the amount of materials and twice the amount of labor that that we have purchased to date. So, you know, we went in with a starting balance of 18,000 coming out of month two, we would, we would have paid about $37,000 in cash to float overhead. And the finance charges starting month three, we have the 37,000 now we’re starting to collect right now. We’ve actually been paid by the GC for a third of the work. So we have $166,000 that has come in for the first phase. We still have the last phase of work to complete. So we have materials and labor that we’re, that we’re going to be paying for. We have our overhead, and then we have our finance charges associated with the material and the labor. And this is the last month. So you know, at this point it is topped out at the 4k.

Jesse:
So we have the $37,000 cash that we’ve spent. We have $166,000 in cash coming in, and then we have a few additional expenses. So at this point, we’re actually starting to increase cash in our bank. And we have a cash balance of $108,000. And again, we still are going to have to pay off the materials and the labor. So this balance is actually going to decrease eventually, but it will fluctuate over the next few months as we have more cash coming in for the work that we’ve performed, but then we have cash going out for the materials and the labor. So on month four, we have a starting cash balance of a hundred, $8,000. The second phase of work we’re getting paid on for the 166,000, but you’ll notice we’re starting to pay off the materials and the labor from the first month.

Jesse:
So the material and the labor that we didn’t have to front in month one. Now we’re starting to pay it back in month four. We still have some finance charges. And when you net all of this out, we’re sitting at a cash balance of about $147,000. Fifth month, we still have the materials and the labor that are being paid off. And we’re going to do so on that second allotment in the fifth month. So we have $147,000 going into month five. We’re going to get paid on the last phase of the work. So in the $166,000, and then we’re going to pay off the second portion of the materials and the labor. And then we have some additional finance charges. This is the kind of the last amount of finance or interest that we have to pay off. So we’re going to end the month with $188,000.

Jesse:
So at this point, we really have just one phase left on the materials and the labor to pay off. Now that we’ve been paid for the last phase of our, of our work, we’re going to make those last payments in month six, we’re going to pay those off. So we going into the month, we had a starting cash balance of $188,000. We’re going to pay off this last amount of material and labor, and we’re going to net out at $63,000. So $63,000 would be our profit margin on this $500,000 project. But you’ll noticed we only know the cash required to take on this project is only $37,000. So now let’s go back and look at if we did not finance this project, what cash would have been required to start the project and what would have been the profit on this project? So you can see the cash required to take on this project is significantly more without financing.

Jesse:
We were at about call it $40,000. So we need an additional $240,000 to start this project. If we don’t have the cash available. Now you’ll notice that the profit margin is the profit is definitely higher without financing, which we would expect because there is a cost to financing. So our profit margin with without financing a $75,000 and without financing, that would be $63,000. But you know, that is a cost of doing business, right? You know, that is your cost to really grow your business in a responsible and a predictable way. And now you don’t have to worry about bridging the gap in your cashflow from project to project. And you can ensure that you’re not putting your company at risk when you take on a large project. And when there are delays that those delays won’t significantly potentially impact your business and your ability to operate, you know, for years to come. So I’m gonna pause again there, Michael, and check in to see if there are any,

Michael:
Yeah, we actually have to have the same question and it’s not surprising because this is a, this is quite a fascinating spreadsheet visual. Two people actually asked if if you were going, if they would be able to receive a copy of this spreadsheet that they could use for their own businesses.

Jesse:
Yeah. So we are developing an online tool that they’ll be able to leverage and we can provide the the website for that. We’re developing it as we speak. So that should be launching next week. So anyone who’s interested in getting a copy of this, I would say if you can provide them our contact information and they can reach out and and we can walk them through the online version of this when we launch it.

Michael:
Great. Yeah. That’s, that’s going to be a great tool. It’s a, it’s fascinating to see the visual and especially when you consider the cash requirement it’s a very small price to pay, to be able to grow your business responsibly.

Jesse:
Yeah, yeah, for sure. So that is the the end of the presentation here. You know, I can flip back to the, well, I don’t have our enrollment link just to touch on just one last thing, you know, regarding build you know, we, as I mentioned earlier, we finance material purchases. We can work with any supplier within United States, and we can work with some manufacturers abroad as well. You know, how, how our product works is we pay your supplier upfront on your behalf. And then we turn around and offer you 120 days to pay off that purchase. We are, we’re really focused on commercial projects. This is a hundred percent project based. But we do do some stop in, in the, in the residential world as well, more so in like the you know, apartments multifamily or subdivision kind of kind of projects. But you know, I just want to thank everyone for their time today. Hopefully they learned a thing or two, and certainly happy to answer any more questions or you know, follow up individually as well.

Michael:
Yeah. Jesse, we have a, we have another question. And I know you used some some round numbers here in the spreadsheet, but what does it cost for someone to finance their materials through Billd? Is that a flat rate or does that vary based on the type of project?

Jesse:
Yeah, so everyone that enrolls with bill typically comes in at a starting a starting rate, and the cost is $50 per $10,000 that they borrowed that’s paid weekly. It’s about 2% a month in other words. And you know, that that’s, that’s pretty much how it works after they pay off a few purchases with Billd and we develop a track record. We we will go ahead and reduce that, but we just want to see that as any, you know, finance company, would, we just want to see some, some history of using the product correctly and paying off a few purchases and then we’ll go ahead and reward them for it.

Michael:
Great. well, if anyone has any additional questions, we’ll give it a few give it about a minute for you guys to type any additional questions, but I do want to thank everyone for attending. I was really I know for me, it was a really helpful webinar build is a great partner of ours, and we’re always excited to work with them. So if you have any additional questions you can email you could email us or contact us after the fact, if we weren’t able to answer any of your questions, or if you think of if you think of something later Jesse’s web email addresses right there on the page. And my email address is michael.Williams@levelset.com. Feel free to email me or Jesse. If you guys have any followup questions, Jesse, I really appreciate your time. And thanks to everyone who attended the webinar.