article thumbnail

Types of Capital for Construction Businesses

Levelset

The term capital is used across industries to represent all of a company’s financial assets, including cash, inventory, equipment, and more. Several different types of capital — working capital , debt capital , and equity capital — are common in the construction industry. Debt capital. 3 types of capital for construction.

Debt 97
article thumbnail

Real Estate Investment Trusts (REITs): Understanding the Construction Connection

Construction Marketing

Equity REITs own and operate income-generating real estate properties, while mortgage REITs invest in mortgages and other real estate debt instruments. Additionally, modular construction can be used to build properties in areas with limited construction resources, such as remote or densely populated areas.

Income 216
professionals

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Construction Bad Debt What To Do About It

Contractor Bookkeeping

All construction contractors have experienced the financial pain of bad debt which is defined as a customer who refuses to pay no matter what you do. Oddly enough most of them paid the debt years later and all of them were very appreciative that we treated them with courtesy and respect. Knowing The Answers Helps.

Debt 49
article thumbnail

Are There Lessons From the Great Recession for the COVID-19 Pandemic?

Pro Builder

Yet some tools and tactics are salient no matter the economic climate, such as controlling cash flow and getting out of deals that may no longer pencil out in the new conditions. . . 1] Mind Your Cash. If the market did roll over, he might have to lay people off, but would not be stuck with land debt. Is it profitable?

article thumbnail

Construction Business Owner Blogs

Construction Business Owner

Resource Center. Inside these pages you’ll learn how to better manage the submittal process; make the most of field, logistics and maintenance report; examine if it’s smart to restructure debt, reinforce training so that it sticks, and more. Accounting & Finance. Construction Law. People Management. Green Building. Construction Safety.

article thumbnail

Optimize Vs. Maximize Construction Company Production

Contractor Bookkeeping

The Key To Maximizing Profits is finding the right mix of production and resources. For Example Overstock Your Truck with every tool you think you may need and loading it to the sky with all the parts and inventory you think you may need and drive hard and fast you are maximizing that resource and that is not a good thing.

article thumbnail

Contractor's Unique Business Plan Outline

Contractor Bookkeeping

Cash flow and Profit is not accident, it is a result of deliberate action. None of my contractor friends who are in debt up to their ears do it. ( So construction firms establish and protect their reputations very carefully based in part on having the resources and expertise to complete the work on time and on budget. #2

Plans 48