Contractors frequently face the financial challenge of paying material costs upfront and labor costs as work is put in place while waiting up to 90 days to get paid by their clients. This strains cash flow, hinders project completion, and limits growth. With Raistone and Mastercard, contractors can gain faster access to funds, streamline payments, and scale their businesses with confidence.
Improving liquidity management for contractors
Raistone finances billions of dollars in the construction sector annually by offering a variety of working capital solutions. Our tailored, scalable programs help companies enhance their ability to achieve their financial goals.
We partner with Mastercard to facilitate vCard payments, assisting with the pressures felt across the industry. Contractors can rely on Mastercard to help them defer paying for materials with Flex Pay and get paid by their customers earlier through Card Collect.
How Flex Pay improves cash flow for contractors
With Flex Pay, contractors no longer need to pay up front for materials and supplies, only to wait months for their customers to pay for them. Instead, they can extend their terms using a Flex Pay vCard, repaying for supplies after they’ve received payment from their general contractor.
Contractors can buy the supplies they need now and pay later, improving their liquidity and cash flow during the life of a project. This allows contractors to reduce risk, take on larger projects, and accept longer payment terms from their customers without worrying about immediate cash constraints.
Contractors can secure early payment with Card Collect
Even with diligent attention to contracts and payment terms, contractors know that payments are too slow. A vCard can help mitigate this pain point by ensuring quicker access to funds and a straightforward, secure way to receive payments.
While state laws enforcing payment deadlines benefit contractors, they still face long gaps between paying for inputs — such as goods and labor — and collecting from their clients. Accepting vCard payments can help contractors control their cash flow, reduce paperwork, and enjoy a smoother payment process.
Benefits of vCard Payments
By using Virtual Cards, contractors can enjoy greater versatility, receiving early payments via Card Collect while also extending payment terms through Flex Pay. With vCard from Mastercard, contractors can enjoy increased access to funds.
Virtual Cards offer a simple, streamlined method of payment, reducing administrative overhead for contractors. vCard payments provide an electronic record of transactions, simplifying bookkeeping and making tax reporting easier. Everything can be done digitally through software platforms already used in the construction industry, eliminating the need for lengthy follow-up calls or chasing down overdue payments.
Each vCard transaction uses a unique, one-time card number, meaning that even if a payment is intercepted, it cannot be reused or stolen. This provides an additional level of security for contractors who regularly process payments online.
Partners in Construction: Raistone & Mastercard
Raistone and Mastercard help contractors navigate complex payment processes easily. By adopting solutions, such as Flex Pay or Card Collect, contractors can experience greater financial stability through quicker access to funds, extended payment terms, and improved cash flow management, positioning themselves for long-term success while assuring that both their suppliers and clients are satisfied. These flexible options ensure that contractors can choose the solution that best fits their needs — whether that means using one or both service offerings.
If you’d like to learn more about how Raistone’s non-debt solutions can help your business scale, please call 888-626-6593 or fill out this form to connect with our team of financial experts.
About the author
Mike Bruynesteyn is the Chief Financial Officer at Raistone. In addition, he serves on the board of directors for Superior Industries (NYSE:SUP) and was previously on the advisory board for ClearMotion LLC. Before joining Raistone in 2019, Mike was Treasurer and Vice President, Strategic Finance of Turner Construction Company — the largest non-residential commercial construction company in the United States — where he helped launch the construction industry’s first supply chain finance program for subcontractors in 2016. Prior to working at Turner, he helped companies raise capital and execute M&A transactions with Strauss Capital, a boutique investment bank. Previously, he was employed with Lehman Brothers as an Investment Analyst and Portfolio Manager, focusing on industrial and transportation-related investments, with a particular emphasis on new technology, vehicle electrification, and Chinese automotive investments.
For eight years preceding his buyside work at Lehman, Mr. Bruynesteyn was the Senior Sellside Research Analyst for the automotive group at Prudential Securities. In this role, he received numerous awards for stock selection and research quality from publications including the Wall Street Journal, Fortune Magazine, and Institutional Investor. Before going to Wall Street, he spent eight years at General Motors in overseas and domestic assignments spanning pricing, sales, budgets, capital planning, treasury, and investor relations. Mike started his career as an Engineer with the British Columbia Research Corporation. He graduated as a Mechanical Engineer from the University of British Columbia and earned an MBA from the London Business School. He also studied at the École des Hautes Études Commerciales outside of Paris.
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