Cash Flow and the 5Cs of Credit - Overview

Contractors need strong financial partners, including banking, surety, and insurance to grow sustainably.

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They are putting their capital at risk, making a calculated bet on the business generating consistent financial returns at the lowest risk possible.  

Cash Flow: 5C's of Credit. Character, Capital. Capacity, Collateral, and Conditions.

Whether you are an equity owner in a contracting business, plan to be or are choosing to invest your professional “career equity” into the business, you should look at the same factors an outside financial partner does. This will truly align everyone’s interests and make the business run more successfully.  

Greg Martin does a great job of describing the 5 C’s of Credit in a series of articles below.  

Effectively managing cash flow is about balancing what you can do internally while building and maintaining strong external financial partner relationships.  

  • What are your internal capital management policies? 
  • Are they in alignment with your outside financial partners?  
  • How does this look over the next 5 years or during succession if that is on the horizon for you?

Cash Flow
Great cash flow is a key driver of valuation and successful successions. Running out of cash is is the #1 reason contractors fail. Improving cash flow improves your Return on Equity. Protect yourself and never let cash flow be the limitation to your profitable growth....

Cash Flow
Great cash flow is a key driver of valuation and successful successions. Running out of cash is is the #1 reason contractors fail. Improving cash flow improves your Return on Equity. Protect yourself and never let cash flow be the limitation to your profitable growth....

The Average Field Day in Detail
Everything we do every day in the course of building a construction project has a cost. Some of those things directly add value to the customer who is the end-user of the project. Improving productivity comes down to three major levers:
Marketing Your Preconstruction Services to Owners and Architects
Learn how to effectively market your Preconstruction Services and CM@Risk as a project delivery method to owners and architects starting with being well prepped for the interview process.
Cash Flow Myth 3 - Having Enough Capital
We have enough capital to not worry about Cash Flow. From the time this type of thinking starts to permeate the organization it is just a matter of time before there will be a cash flow crisis.