As inflation, supply chains, and skill shortages ravage the industry, the last thing business owners need is another curveball. But there are other threats that lie in wait, including poor cash flow.
And as any industry veteran could tell you, running in the red could be lethal.
Understanding cash flow issues in construction
Building and construction firms in Australia are failing at unprecedented rates, all largely due to cash flow. In 2022 alone, more than 15 builders collapsed due to bad cash flow. The rising costs of materials and labour, coupled with the remnants of COVID-19, swallowed their remaining profits.
As you well know, cash flow for a construction project looks nothing like most small business cash flows.
Project timelines are often long and complicated, while invoices easily reach hundreds of thousands of dollars. Unless invoices are paid right on time, a business could suffer.
Take Thor Building Products as an example. Like many businesses that support the construction industry, Thor Building Products struggled to scale its business thanks to slow-moving invoices. The company knew it needed a business cash flow boost — and fast. The problem? Traditional cash flow finance options didn't stack up to reach the next stage of growth.
And that’s why they turned to Marmalade.
Marmalade’s cash flow solutions for small businesses
Offering guaranteed 24-hour payment for invoices paid early and zero hidden fees, Marmalade is the best cash flow option for construction companies and beyond.
We’re not a bank, a lender or an invoice finance solution. Instead, we help businesses access their funds, when they want them, by paying a one-time fee of 3% to 5% per invoice. There are never any extensive credit checks or interest, so you can access your funds however you like. It really is that simple!
Here’s how to improve cash flow for your construction business with Marmalade:
Use Marmalade to get early payment for unpaid invoices instantly.
Stop wasting time chasing invoices and maximise your productivity.
Integrate our platform with the functionality you already have in Xero.
Avoid more debt by getting paid for work you’ve already done.
Improve your construction company's cash flow with Marmalade
The construction industry is often troubled by last-minute changes, delays and unexpected red tape. And while it certainly can impact your finances, it doesn’t have to be this way.
Marmalade empowers construction companies to spend less time running in circles and more time getting paid. With millions of dollars transferred and wildly happy customers, we’re Australia’s fastest and easiest way to get access to your money, when you want it.
Trusted by hundreds of Australian businesses
Construction cash flow is cash created or consumed from operating, investment, and financing activities. For example, if your construction business makes $15,000 from operating activities but loses $3,000 from investment changes and $2,000 from financing, your monthly cash flow would be $10,000.
Positive cash flow helps your construction business fund new projects, pay labour staff and invest in operational improvements.
When your cash flow becomes negative, your business may not be able to meet its financial obligations. This means turning to high-interest financing options, laying off employees or selling owned equipment. Without enough positive cash flow, your construction business may shut down completely.
Construction cash flow refers to a business's profits and expenditures during a set period (usually one month or one year). For project managers, the cash flow formula is used to calculate the general health of a business or project. Positive cash flow indicates the business is booming, while negative cash flow points toward underlying problems.
Marmalade unblocks barriers to growth by allowing you to gain early payment on invoices at scale — without the predatory interest rates of traditional business cash flow options. Our platform transfers funds in 24 hours, guaranteed, letting you take advantage of new projects, clients, and business opportunities.
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For more information on how Marmalade can revolutionise your Labour Hire business with instant invoice payments, please get in touch TODAY!
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