Billd is a payment solution that allows contractors to offer 120-day terms to pay for commercial construction materials.
Cash flow struggles represent a significant problem for most commercial contractors. In a national study, Construction Executive magazine reports that 87% of contractors experience cash flow problems. “That’s a heavy burden to bear for companies that must pay for supplies in advance,” reports the publication.
And that financial burden and stress often gets passed on to construction supply companies like yours. There’s the obvious problem of contractors not paying you for supplies on time, of course. But low cash flow also affects the contractor’s ability to expand and grow, which in turn impacts your own company’s growth potential.
Billd is a financing and payment processing solutions provider to solve the widespread cash flow problem in the commercial construction industry. This benefits contractors and suppliers alike. As a supplier, using a service like Billd can help you provide financing terms, payment terms, and customer service that attracts more contractors and allows you to sell more with less risk to your bottom line.
What Are Commercial Contractors?
Commercial contractors build commercial business developments, such as office buildings, shopping malls, and other similar enterprises. Compared to residential construction, these types of projects tend to be far more complex, in-depth, and longer-term. Billd offers these types of contractors payment terms from commercial construction suppliers like yours so that they can take on more projects and you can sell more with less risk.
Are Building Contractors the Same as Commercial Contractors?
The different terms associated with construction can overlap in many key areas. Commercial contractors are essentially building contractors or general contractors who are capable of managing and running the tasks required on a commercial site, whether that’s commercial construction or commercial renovations.
This requires specialized training and experience because of the significant differences between commercial and residential development. Example differences include:
- Different sales and bidding processes.
- Larger, more complex project scopes.
- More complex service expectations and timelines, including job costing, managing material supply chains, material pipelines, and scheduling/dispatching workers.
- New processes for work and materials, such as multi-phase electrical work instead of residential single-phase work or steel framing instead of wood framing.
- More complex code and regulation compliance.
Billd helps commercial contractors with 120-day payment terms in their materials to take more projects while allowing material suppliers to sell more with less risk.
What Are the Different Types of Commercial Contractors?
The commercial contractor or general contractor doesn’t work alone. He or she also works with various vendors, companies, and commercial subcontractors who specialize in specific tasks like plumbing or HVAC.
Some of the common companies and subcontractors that you may encounter in commercial developments include:
- Commercial construction companies: They tend to take on larger projects, such as building a business park, and may have their in-house team of specialized designers, engineers, etc.
- Commercial building contractors: This term is often used interchangeably with commercial contractors.
- Commercial roofing contractors: Whether it’s a flat or pitched roof, commercial roofing may require specialized requirements based on the business’ needs. For instance, the roofing contractor may need to design a roof with extra insulation, or one that’s capable of handling walking traffic.
- Commercial electrical contractors: Industrial electrical services may include ballast installations, security lighting, surge protection, safety inspections and code updates.
- Commercial general contractors: This term, similar to commercial building contractors, is often used interchangeably when referring to industrial development.
- Commercial painting contractors: The scale of commercial development often requires not just more paint, but also specialized work like setting up and operating scaffolding, boom lifts, and sandblasters.
- Commercial concrete contractors: These contractors oversee site prep, formwork, placement, and finishing of the job site’s concrete needs, including elements like parking curbs, sidewalks, and planters.,
- Commercial plumbing contractors: Commercial plumbing involves the design and installation of overhead sprinkler systems, sewer lines, and more.
- Commercial flooring contractors: Flooring in an industrial setting will go through far more wear and tear than within a residential context, and commercial flooring experts must take that all into account.
- Commercial HVAC contractors: Commercial HVAC systems control indoor air quality, temperatures, and humidity, and the contractor must navigate a wide array of system options (e.g., single split systems, multi-split systems, VRF/VRV systems, etc.).
- Commercial mechanical contractors: Commercial mechanical services may be required if the business or job site requires systems like ammonia systems, CO2 systems, furnaces, boilers, etc.
- Commercial drywall contractors: Commercial developments need high-performance drywall engineered for the specific businesses’ requirements.
Commercial Contractor VS Commercial Construction Companies
In general, a commercial construction company — with its bigger in-house team and a potentially bigger network of pre-existing suppliers and vendors — may focus on large-scale commercial development projects.
Meanwhile, an individual commercial contractor might specialize in small- to mid-sized industrial projects.
However, there are no legal distinctions between these two terms, and these terms are occasionally used interchangeably.
Sell Construction Materials: How to Find Commercial Contractors
As a construction materials supplier, working with commercial contractors in a B2B context introduces new levels of complexity because these contractors have:
- Numerous projects on the go
- Extensive supply chains and material pipelines
- Multiple channel partners
- Job sites that are geographically spread across the region
- Complex legal and safety regulations
If you want to find commercial contractors and sell construction materials for their job sites, your construction supply company needs to:
- Implement a proactive sales program, scheduling calls or meetings with contractors in your area (and, in more limited cases, marketing yourself to facility managers, building owners, or job site owners who may then request that your materials be used on their upcoming developments).
- Show you’re prepared for the wide range of needs that are a natural component in commercial development, whether that’s rapidly changing sales volume (and the ability to scale quickly), extended payment terms for supplies, etc.
- Overcome price and payment objections that a contractor may have, such as issues with the typical 30- or 60-da payment terms, are the standard timeline used by many suppliers.
- Show your dedication to an ongoing partnership and build trust, whether that’s through payment flexibility, the quick shipment of the supplies even while the contractor is still working to settle their invoice with you, etc.
- Partner with Billd to sell more materials with less risk.
Commercial contractors have unique challenges, especially as it relates to cash flow and buying materials and supplies.
But that also presents a unique opportunity to suppliers and vendors like you. Switching your payment processing provider to Billd, and adjusting your payment terms, is a powerful way to take advantage of this opportunity.
Billd: Sell More Construction Materials to Commercial Contractors
Billd’s founders have worked with thousands of commercial contractors and commercial developers across America. With that on-the-ground experience under their belts, they built the Billd payment processing platform to solve the cash flow restraints that these contractors face when buying construction materials.
When contractors use Billd, the process is straightforward:
- The commercial contractor or tradesperson signs up for a Billd account.
- The commercial contractor buys supplies from you and signs a purchase agreement/contract.
- The contractor uploads a copy of the contract to Billd.
- Billd pays you upfront to ship the materials to the contractor, then settles up with the contractor, so you don’t have to do it yourself (Billd gives the contractor 120-day payment terms).
Billd works with all types of commercial development, including agriculture, industrial, and utility. The payment processor also works with all subcontractors and construction trades, including steel framing, electrical, concrete, flooring, trim, and more.
But Billd’s unique model and payment processing service don’t just serve the Billd commercial contractor’s needs. The benefits of using Billd also impact the supplier or vendor’s sales process and bottom line, too.
What Does Billd Offer to Construction Materials Suppliers?
When contractors face a cash crunch and a cash flow issue, construction supply companies get the brunt of it in terms of late payments, missed payments, etc. Billd takes away that headache, giving you on-time payments for your materials (and in some cases, same-day payment).
But that’s not all. When you incorporate Billd’s platform into your business:
- You can focus on providing exceptional customer service instead of wasting time, money, and customer goodwill on collections.
- You increase sales, including total value per purchase, since your customers can buy as much as they want and need right now, and they don’t have to pay Billd until later.
- You create industry-wide momentum that improves your bottom line (with more access to funds, contractors eliminate cash flow bottlenecks and can take on more projects, which means more sales for supply companies like yours).
- You get listed on Billd’s platform as a Billd-friendly supplier, creating new leads and buzz for your company and driving more contractors to you as a favored vendor.
What Are The Benefits of The Partner Programs?
Most of all, you eliminate the risks that may keep you from working more with commercial contractors.
Commercial construction represents bigger, higher-value projects. But because of the cash flow problems that challenge many contractors, it also creates more operational risks for suppliers and vendors.
Billd fits into your existing purchase processes without needing any new order flows or complex software changes. And because Billd takes on all of the payment risks and operational burden, you can focus on marketing your business, taking care of your contractors, and providing exceptional service.
How You Can Get Started
There are no enrollment costs and no minimum sales volume for suppliers who partner with Billd and sell suppliers to Billd commercial contractors. As a Billd partner, you can even onboard and enroll commercial contractors directly onto the platform. Contact Billd to get more information on their supplier partnership program today to get started on selling more construction materials with less risk.