Flexbase is turning construction financing on its head with a new credit card — the industry’s first, according to the founders — that offers up to 60 days interest-free financing.
The company, which develops automated payments tools for contractors and the construction industry, was started by Zaid Rahman and Hadi Solh to target small- and mid-sized businesses.
Rahman, a Theil Fellow, and Solh grew up in construction families, hearing stories around the dinner table of cash flow pain points. When Rahman’s father, who ran a construction company in Dubai, had a customer not pay a multimillion-dollar invoice, he suffered a heart attack. Rahman and Solh joined to form Flexbase so companies would have easier access to capital so that cash flow problems could be avoided.
“Most construction companies are either broke or one degree away,” Rahman told TechCrunch. “One of those reasons is that most clients don’t like to pay on time. Another is that banks don’t like construction companies because of that cash flow problem, so the company is less likely to get short-term capital. That is also why they go bankrupt so often.”
Any construction company can apply for Flexbase Card, which is launching in Houston first, but the co-founders said those who use the card with the other Flexbase tools will be able to gain deeper insight into the company’s financial data and be eligible to borrow larger credit amounts.