In the capital‑intensive construction sector, managing cash flow while scaling multiple projects is critical. Several construction‑focused businesses, including solar installers, specialty contractors, and materials suppliers, turned to Daylit’s PayLater and FundNow products to unlock working capital, speed project delivery, and capture material cost savings. As a trusted working capital partner to small-medium and mid-market businesses across the U.S., Daylit has financed hundreds of millions of dollars in project costs and receivables, delivering positive ROI through faster project completion, preserved cash, and reduced procurement costs.

Specialty Contracting Company Profiles

• Solar Installation Contractor: Regional residential & commercial PV installer with frequent equipment purchases.
• Flooring & Decorative Surfaces Contractor: Specialty installer handling large one‑off customer projects.
• Stone & Granite Fabricator/Installer: Provides countertops & high‑end finishes, billing customers post‑install.
• Landscape & Outdoor Construction Firm: Seasonal business purchasing bulk materials ahead of busy periods.

While their specialties differ, each company faces similar cash‑flow gaps between paying suppliers and receiving customer payments.

Challenges Regarding Cash Flow Management

• Large upfront material costs strain working capital.
• 30‑45‑day customer payment terms delay receivables.
• Project schedules slip when funds are tight, limiting the number of concurrent jobs.
• Missed early‑pay or bulk‑buy discounts increase project costs.

Daylit’s Working Capital Products

PayLater

• Purpose in Construction: 30–60‑day financing of supplier invoices for materials & equipment.
• Typical Use Pattern: Used repeatedly; construction companies commonly finance 5-10 invoices each month, ranging from $5K to $10K each, resulting in million dollar average annual totals.

Delay supplier payments with PayLater    

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FundNow

• Purpose in Construction: Advance of up to 90 % on outstanding customer invoices.
• Typical Use Pattern: Used selectively per project; advances of $7–9K bridged 30‑45‑day payment gaps.

Speed up cash collection with FundNow

 Learn how you can get paid upfront on your sales invoices.                    

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Outcomes for Construction Businesses

• Faster Project Delivery: Invoice advances eliminated 30–45‑day wait, keeping crews mobilized and enabling overlapping jobs.

• Material Cost Savings: PayLater enabled bulk material buys capturing supplier discounts (5–10 %) that exceeded the financing fee (~2 %).

• Liquidity Preservation: Hundreds of thousands of dollars of costs financed externally, freeing cash for payroll and new bids.

Return on Investment for Construction Companies

• Net Savings Example: Financing fee of 2.5 % on a $30K material invoice (~$750) offset by 6 % bulk‑buy discount ($1,800) → $1,050 net gain.
• Revenue Uplift Example: Access to $9K FundNow advance allowed a specialty contractor to start the next job two weeks earlier, adding an extra project worth $25K in the same quarter.
• Repeat Usage Indicator: Solar installer increased financed volume from $15K first month to $190K over 6 months, demonstrating perceived value.

Best Working Capital Practices for Construction Businesses

1. Combine PayLater & FundNow: Using both products creates a continuous financing loop from procurement to payment.
2. Start Small, Then Scale: Begin with a single purchase or invoice to build confidence before expanding limits.
3. Leverage Supplier Discounts: Model financing fees against early‑pay incentives; savings often outweigh costs.
4. Automate Repayments: Linking accounts for auto‑debit reduces admin overhead and ensures on‑time performance.

Conclusion

By integrating Daylit’s flexible PayLater and FundNow financing into their workflows, construction businesses transformed cash‑flow constraints into a strategic advantage. The result is faster project cycles, lower material costs, and stronger growth capacity, all achieved with minimal administrative burden. Daylit empowers construction firms to build momentum and scale projects without tying up precious working capital.

Accelerate growth with working capital  

Learn how Daylit's construction industry solutions can help you manage your cash flow.                  

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