Finance materials with Levelset | No upfront fees on your first job.

Gain Financial Flexibility with Materials Financing

Role

All

Project Type

All

Take back control of your financial decisions and give yourself more breathing room.

You should be able to make decisions for your business without worrying about whether or not your next job will drain your cash flow.

In this webinar, John Burns, Construction Payment Expert will talk about how to get access to financial flexibility through Materials Financing and how it allows you to grow your business and take back control of your cash flow.

Register for this webinar to learn how:

  • Why it’s so difficult to get paid in construction and what you can do about it
  • Advice from financing experts on how to increase financial flexibility in your business
  • Real world examples of how specialty contractors are using Materials Financing to help them make decisions that result in growth and profitability

 

And if you have a question during the session? Good news. We’ll answer it live–just ask.

 

Speaker 1 (00:04):
All righty. Alrighty. Well, thank you so much for being here. We are going to go ahead and get started. So what I’m gonna start out with today is level set, who are we? We are here to help you get paid and we empower people to get what they earn, keep a positive cash flow and protect their business. So from our lean Lean’s right management software, that helps you track mechanics lanes to financing materials for your next job. There is so much we offer that helps you get paid, and that closes that cash flow gap. I’m DIA item, a construction financing expert. And I have some colleagues here that will introduce themselves as well.

Speaker 2 (00:46):
Hi, my name is John Burns. I am a construction financing expert here at level set and I help contractors be financially flexible.

Speaker 3 (01:01):
We love to see it. And my name is Kara. I am also a construction financing expert here at level set, and I am just happy to be here. I cannot wait to hear everything that John has to say. And on behalf of all of us, thank you again for joining. We have a lot of great info to share with you.

Speaker 1 (01:22):
Awesome. Now let’s go ahead and go through today’s agenda. So what will you be learning during this webinar? It’s about financial flexibility. What is that and why is it so important? And then we’ll go into why is financing materials upfront a trusted solution? And then we’re gonna talk about options. What options do you have when it comes to improving, improving, and gaining financial flexibility? So cash flow, we know that cash is king, especially in the construction industry. So from buying materials to hiring a crew business begins when the cash flows. So we know that that’s only one part of the equation because although we need cash, we also need to get paid and we need to get paid in a timely manner. It’s a huge challenge in the construction industry. And we know that the average payment for the construction industry is about 90 days. So that creates some difficulties when it comes to paying bills, making payroll and ordering equipment. And so we’ve discussed some of these cashflow problems. John, can you tell us a little bit about financial flexibility and how specialty contractors have found solution to these cashflow issues?

Speaker 2 (02:48):
Yeah, of course. Thanks. so there’s traditional means for contractors, but to be financially flexible means being able to be agile with your money, take on a project that you wanna take on, hire the crew that you need pay for the materials that you are needing for a project and be able to actually succeed. Working capital is the main way to go about that. And there’s a few, few ways that specialty contractors operate with that. The first is very traditional terms with a supplier supplier may give you 60 day net terms to pay them back for materials that you purchase. Or you may have a line of credit with a bank. Those are useful and they’re necessary, but they don’t fulfill all of the requirements for most companies. The other side that we provide is materials financing. So you can take on the project that you want without having to be out of pocket. In the meantime,

Speaker 1 (04:05):
That’s so important because we definitely need those opportunities and that cash flow to be able to take on those projects, like you mentioned, and we wanna talk about one of our customers. Can you share a little bit about how Alberto Polanco created financial flexibility in his business?

Speaker 2 (04:28):
Absolutely. Dos. Yeah. Alberto is amazing a Renaissance man, if you will went from not much to great Heights within a matter of just a few years and he’s grown so much now to where he keeps using us for more projects. The previous times that they’ve used us was to take on the overwhelming demand that they have for their business. All of these bids coming to them left right and center, but they couldn’t take them. They couldn’t take on those projects because they didn’t have the working capital to start them to get the materials that are needed. So they partnered with level set to finance materials. And now they’re three and a half million dollars in sales. Dasia, you had you had actually interviewed Alberto. Was there anything that, that stood out in your interview with him that we don’t have published in his customer story?

Speaker 1 (05:38):
Yes, absolutely. One of the things that Alberto really focused on and was so important to him was his team and his employees. And he talked about during a difficult period of COVID and like a lot of companies were laying golf. He was actually able to keep his employees and add more. And he talks about the ability to do that. In part through materials financing, and just having cash flow to where he could still take on bigger projects, but also be able to pay his team and pay them well. So he talked about the importance of the family oriented environment that they had. They have a showroom where after the day ends, they go down and have events and drinks. And so he really highlighted that his team was a core part of the success of his company and how taking care of them and being able to pay them and pay them well was something that he was so proud of.

Speaker 2 (06:42):
I love that, man.

Speaker 1 (06:43):
Yes.

Speaker 2 (06:44):
<Laugh> love him.

Speaker 1 (06:45):
Absolutely. Thank you for asking that. So the next thing we wanna get into is why is financial flexibility so important and is it really achievable? So John, can you tell us a little bit about that?

Speaker 2 (07:01):
Yeah. well start off with flexibility. Being flexible with your money means that you have freedom in independence first and foremost contractors don’t typically just decide I’m going to be a contractor. And that’s what I want to do. There’s a passion that’s typically behind it. This is a decision to go into this industry. So the most volatile and vulnerable industry in the economy and make something out of nothing. So being able to like get to that point, like, is it possible? Absolutely. there’s success everywhere if you find it. And that’s what we help try to find. But being in that position means that you’re not locked into any kind of corner or locked into any singular type of work being a one trick pony. And I, I do wanna ask the group you know, if you have these kind of scenarios, do share them, please, we wanna help.

Speaker 2 (08:23):
I wanna have a discussion about it. But from a standpoint of construction itself, you choose how difficult it’s, you know, if you’re financially flexible, you’re able to decide this is the work that I want to do. Being stuck in one type of market, being stuck, doing residential remodeling. When you want to take on commercial projects, doing the same thing means that you need capital to be able to achieve that without it it’s rinse and repeat. So that gives you that ability to jump into whatever you want to do to pursue your passions and grow your business. And that means that like with dossier said, you get to keep everybody under your wing, everybody that you are responsible for your crew, your family, safe and protected. You’re able to keep them having money being able to put food in their family’s mouths and making them happy, making your crew happy is the most important thing you can do. They’re the most important asset for any business. So being able to be financially flexible, take on whatever you wanna take on means that you’re able to essentially just be choosy. You choose what jobs you want to take on. You choose how fast you grow and expand. And you’re able to choose what is right for me as a business owner.

Speaker 2 (10:12):
And the, and another aspect of that is being able to create that wealth that we hear about all the time that generational wealth, most construction companies are family oriented businesses without having money constantly coming in. There’s no way to build that wealth. So it gives you the ability to pursue that. And the main aspect of it is why, why do you want to do all of this? And it’s because there is a light at the end of the tunnel. There’s something that you want to pursue will give you the means to pursue it.

Speaker 1 (11:00):
Absolutely. And we love you sharing about the financial flexibility. We also want to ask for everyone watching, what does flexibility mean to you as a construction professional, please let us know in the chat what that means when you hear that and your thoughts about it. So we’re gonna have a Q and a later on, but as we move through it, we would love to get some of your feedback as well. So we talked a little bit about cash flow and we talked about financial flexibility. Now, how do these things, how are they tied together and how are people able to attain them? So we wanna talk a little bit more about that as well. So, John, can you tell us why financing materials upfront is a proven solution when it comes to financial flexibility?

Speaker 2 (11:59):
Yeah. Yeah, sure. For one being able to say to a supplier, I’ll pay you a hundred percent upfront, not have them chase you for money. 60 days later, 30 days later, one, you get to sleep at night knowing they’re never gonna chase you down and you get to succeed in the project. And I, I do wanna highlight I, before I jump into a whole bunch of other sides of this, I have a customer that I’m working with currently. They do rebar concrete and rebar work in Iowa. And they’ve had bids coming to them for years, but they haven’t been able to take them on cause they need the money. They partnered with us because they have a large project that they wanted to take on, saw that we provide materials, financing, and they’re able to now take on a project that would be $50,000 in profit to them where they would’ve been $20,000 in the hole right out of the gate.

Speaker 2 (13:17):
So you’re able to take on those scenarios of out of pocket costs, being out of the question, it’s not something you have to necessarily worry about to be able to take on a new project and materials financing. Like I said, it removes all of those barriers. You get to choose what supplier you want to work with. It doesn’t matter if you have terms or a relationship with them. We’re agnostic, we’ll work with them. So never again. We have to have the fear of missing out. I guess you can say that that FOMO, you know, your, your com your competition or your friends in the industry, they’re talking about these projects that they want to take on. They’re talking about a successful bid that they got awarded or a new project. That’s gonna net them, you know, a million dollars, all those happy stories. Don’t miss out on them.

Speaker 2 (14:17):
You can take action and you can take, you can do that project if you work with us. But another side, and this is the less optimistic side. The economy, there’s a bubble growing. Every time we look at it everywhere, there’s a bubble always, but there’s one common denominator with every type of financial pressure, either a recession or a bubble bursting or interest hiking, the roof, it all affects construction first and foremost, and more than anywhere else, every single bubble that’s popped has impacted the construction industry. That much harder COVID impacted the construction industry harder than any other. We can talk about supply chain issues, but that’s neither here nor there many companies were. Weren’t able to get materials out of pocket. Cuz suppliers said, I want that money now to pull back on any attrition and without the money being able to do that, they couldn’t take on the project, which means they have no money coming in, which means that they can’t pay their crew. You see where I’m going with this at this point, we never want that to be an option. We don’t want that to be even a possibility for you. And that kind of hearkens back to a point I made earlier.

Speaker 2 (15:53):
There’s an end goal in sight for every construction business. You’re not just doing the work for no reason. It’s your retirement. It’s your family’s income. It’s vacations. It’s security in being able to say, you know what, I’m 60. I wanna hang up the hammer and I wanna go play golf. You don’t get there without cash flow and working capital to get to that goal. So a little bit about the challenges that contractors face like materials financing is really about taking advantage of the opportunities that, that come to you. Every contractor I speak with says that they have passed up projects cuz they don’t have the money to start them well by financing the materials, you’re able to jumpstart that cash flow. And we look at it as an entire partnership in a relationship building. We wanna be with you each step of the way.

Speaker 2 (17:11):
So you’re not lost. You’re not stuck in a process. You’re not figuring it out yourself. You’re able to rely on experts that have a proven track record of succeeding, where nobody else is. So with the materials financing program, you’re able to empower you and your company to take on those projects without waiting for any payments to come through from your customer. And when you finance materials on a project, we ensure that your lean rights on that project are protected. In case you, you run into any problems, we will be your advocate and we’re the, we’re the leader in lean rights. So we know what we’re doing there as well, but being able to pay us when you get paid on the project with up to 120 day terms means that, you know, whatever supplier you wanna work with, whatever project you wanna take on, send it to us, will help you out. And that’s the, that’s the real meat and potatoes is having somebody on your side to help move these projects forward, build that income and see you succeed day in and day out.

Speaker 1 (18:36):
Yes, indeed. And we enjoyed all of that information that you have shared with us. And when we talk about our customers, that is what it’s all about. How can we help our customers get paid? How can we help them build the businesses? And John, you talked about the why, you know, how can we help you all make sure that your, why is front and center? And one of the things is making sure that cash flow is available. And I just want to share this quote by Vivian. She says, I think it’s awesome that we get 120 day payment terms with level set because sometimes it can be 45 or even 60 days before we get payment from the customer level set is a great option for materials financing. If you need more time between purchasing materials and receiving payments. And we talked about that as well, the slow payments, not being able to take on bigger jobs or your next job, not because it’s not there or available or not that the demand is not there, but because of not having the financing available. So we want to ask we want to answer your questions. So if you have any questions, please take advantage of John’s expertise here. You have him. And we wanna make sure that we get all of your questions answered today. So if you have any questions, please feel free to drop it in the chat and Kara will help us with an reading those questions and we’ll get them answered any questions.

Speaker 3 (20:18):
Yeah. So I haven’t seen any come into the chat quite yet, but one thing that I think I would love to hear a little bit more about is, you know, this partnership that we briefly touched on between level set and the specialties or subcontractor is so important and is something that we don’t often see. And we have heard stories, you know, of really rough situations where, you know, the supplier needs payment on day one. And this is like supposed to be the job that just catapults this career. And then you find yourself out of everything where you’re depending on personal lines of credit and you’ve put your, your equity on your house. You’ve taken out double mortgages, you’ve done all of these things that you think are just gonna get you to that next job to the, the one to two jobs that it’s gonna take to really catapult your business.

Speaker 3 (21:16):
And one thing that I think differentiates us from other competitors, or even certain things like banking you know, traditional banking options is this partnership. The fact that someone like John is going to call your supplier directly and work with them to get your terms the way that you need them to be, to get the, that payment done on day one to give you the ability and the breathing room to focus on other things, not just financially, but also with your time, someone like John stepping in and calling your supplier and making that happen. And so you can get back to, to doing what you need to be doing or golfing, however you wanna spend your time. It’s it’s yours again. And so John, I would just love to hear you speak a little bit more about that actual partnership and the human element to what it is that we do over here on materials financing.

Speaker 2 (22:14):
Oh boy. Kara. Yes. Yes. This is the part that I am most, most passionate about with my job. I have a customer that is they’re trying to do a new program for rebates in Arizona, making commercial buildings, more energy efficient. There’s barely anybody in the market doing this in the main reason why is because it costs nearly a hundred thousand dollars upfront to purchase all the materials and the equipment to actually even install on that project, to be able to get those rebates. And he’s so passionate about this idea. This is a dream of his, because he’s doing a HVAC service work currently. But with these projects, he can net a hundred thousand dollars each time. So his entire business philosophy is I want to build further. I want to be able to pay for my son’s college tuition. I want to be able to make, I wanna buy a new house.

Speaker 2 (23:24):
I wanna buy a new car, like all of these things, and I’m having conversations with him. And he sees all of these golden ideas, these, this motivation behind the work that he does. And he sees an actual path to get there where previously he was just kicking the can saying that will be something that I get to in a few years when I build up enough money. So being able to fast track that and get that started now means that he’s not waiting. You know, a decade after the competition has already come into full swing. He’s getting in there early and he’s gonna corner out the market from it. I’m, I’m reading Joseph Knight’s question here. Good afternoon, Joseph hope you’re doing well. What are the financial requirements for us as contractors to acquire materials financing to clarify, don’t know exactly what you mean by financial requirements.

Speaker 2 (24:29):
But for one we’re, we’re not a bank we’re not going into the nitty gritty of any financials necessarily. All that we really need is essentially the signed contract between you and your customer and then the invoice. But on the next slide, I believe there’ll be a QR code. Oh, there it is. If you wanna scan that or you can reach out to me directly, be happy to get some information on the project, understand the why behind what you’re looking help with, what you’re looking for help with and push the application through so we can be successful for you.

Speaker 3 (25:15):
And to that end you know, we don’t look at credit. There, there is often a soft credit pool, but it doesn’t impact credit in any way. We’re not looking through any kind of bank statements or any very specific financial documentation. As John said, it is project to project based and because our company was founded on lean rights and ensuring that everyone in the construction industry has a fair chance at getting paid. We look mainly at the lean rights and we make sure that not only can we protect your rights, but ours, as well as we now have skin in the game, when we go to finance your materials. And it all comes back to that partnership, you know, as a big bank, they don’t have skin in the game when it comes to your day to day and your job and what you’re doing.

Speaker 3 (26:01):
Like it’s just another number, but for us, this is our life just like it is for you. And so, you know, it is project to project based and it’s a very different situation than anything that I would imagine many have encountered before. So as John said, this QR code will take you to a place where it just asks you what kind of materials you’re looking to finance. And it’ll put you in touch with John. And from there, he can answer even, even more questions and very highly specific questions about each job that you may have. And not only that, if you don’t have a job right now in mind, but you’re looking, you know, two, three months, six months down the line, and you know, that you feel like you can’t bid on that next job because you haven’t been paid from a job 2, 3, 6 months back, come talk to us because we can help you along that process and tell you, you know, this is what you, you know, can potentially be approved for. And this is how we can help you. And then you go to, to the, to the table for that bid and you know exactly what your buying power is and you know exactly what you can do in that moment to win that bid. So again, it all comes back to the partnership. If you ask me,

Speaker 2 (27:13):
I, I wanna highlight one thing. There’s, there’s such a cathartic experience when I speak to my customers and they say, well, my supplier requires payment in 60 days. And then I ask them, what will they do in return for you? If you get them paid day one, most suppliers aren’t gonna bucket that. So that’s a process that I love to see because that’s just a net gain for you to help further the relationship that you have with your suppliers and your vendors. And if you don’t have a relationship with them at all, then we’re even better on that scenario, cuz they’re going to typically require you to pay a hundred percent upfront anyways. So you have those materials that you need from a different supplier. You don’t work with typically well, perfect scenario to try us out on.

Speaker 1 (28:17):
Absolutely. And wow, thank you so much, John and Cara for ending us on those wonderful details. We are so excited that you are here with us today. We appreciate your time. We know it is extremely valuable. So we just wanna remind you that to be on the lookout for an email after this webinar and it will have the recording and additional details. You also saw that QR code. You could scan that. I’ll go back to that as we end and John’s information.

Speaker 2 (28:49):
If you wanna take a picture of it and you can share with your, your friends and colleagues I’m, I’m not a, a Zoomer as they would say, call my line. I’ll talk to you.

Speaker 1 (29:05):
Absolutely. We’ll leave this up, but thank you all so much for joining us. We hope you have a wonderful, wonderful day.

Speaker 2 (29:14):
Take care, everybody. Thank you all.