Construction Credit Cards: Is There a Credit Card Available Specifically for Construction Needs?

Zaid's picture
Zaid Rahman
October 26, 2021

As a contractor, you know the routine all too well.

You send your crew on a supply run. They come back short on receipts.

Not only are you lacking a hard-copy proof of purchase for your client, but you’re also left wondering if they’ve used the company card to buy everybody’s lunch — again.

Wouldn’t it be great if there was a credit card that was built just for construction businesses? One that took into account the unique challenges of the industry?

Great news! Now there is.

Read on to learn more about the only credit card solution made specifically for your construction needs.

Table of Contents

Flexbase: The Only Construction Credit Card Solution With Expense Management Included to Streamline and Automate Billing

Managing the details of your company’s cash flow is an overwhelming task …

… unless you’re using Flexbase.

Flexbase has the tools your construction company needs to easily stay on top of:

  • Invoicing
  • Payment reminders
  • Software integrations; and
  • Paperwork

And you can add to that our new Flexbase Construction Credit Card  — complete with an expense management system.

The Flexbase Construction Credit Card:

  • Uses your actual cash flow to determine your credit limit
  • Allows you to set specific, customized authorizations for your crew — including spending limits and where they can shop
  • Automatically links your receipts to your specific projects
  • And much more

What Is the Best Credit Card for Contractors?

The best credit card for contractors is a card designed especially for the construction business with features that include:

  1. An integrated expense management software component
  2. Customizable authorizations
  3. A credit limit that matches your cash flow
  4. Syncing of receipts to invoices; with
  5. No credit score needed

Real Construction Company Owners Share What They Hate About Their Current Credit Cards

We’ll say it plainly: Traditional credit cards do not meet the demands of construction companies. Not by a longshot. Not even the largest credit card companies are designed to provide the type of credit limit, cardholder management, and rewards programs that would benefit construction companies.

We’ve interviewed construction companies to hear what they have to say about their current credit cards and the constant struggles they face. 

Small Credit Limits

According to the latest study from Experian, the average credit limit for small business credit cards is $56,100. However, receiving a credit limit of this size is no small feat, as credit limits are typically based on the personal credit score of the business owner.

While traditional credit cards may offer reasonable credit limits for some small businesses, they are no match for the construction industry. 

“As a construction company, we deal with a lot more “zeros” than most small to mid-sized businesses; our average contract value is between $250K-$300K.” Whitney Hill from SnapADU shares, “Given this reality, our cash flow needs are large and can have dramatic swings. As a new company applying for credit cards, we were extended a very small amount of credit ($5K), with the idea being that we could increase that over the coming years based on good history. However, a credit limit of that amount, especially when spread across cards used by 10+ employees, served no practical purpose.”

However, getting a credit limit increase is easier said than done, as the SnapADU team found out.

“Even after a year in business and having paid the card in full on a weekly basis, we have been extended a credit limit of just $10K. Given this, we use our credit card as a "last resort" measure only when needed and do so simply to build our overall creditworthiness,” says Hill.

Credit Limits Based on Personal Credit Scores

Small credit limits result from one unfair consideration — personal credit scores. In no way does a business owner’s personal credit score reflect the needs of their construction business, especially when the cost of materials for projects can run into the hundred-thousands.

“The biggest headache is the fundamental platform for credit cards.” shares Donald Bloom, CEO of Myriad Electrical Contractors, “In general, they are not designed with the differences of business operations in mind.  The normal structure of purchasing supplies or materials is still based on a personal platform such as one may use for their personal card.”

Poor Cardholder Management

Your business credit card should make your life easier, not harder. However, many traditional credit cards are lacking in cardholder management capabilities. 

“We've noticed that our credit card activity with providers doesn't automatically link with our accounting software Quickbooks.” Hill shares, “This requires some additional manual work to import our credit card statement to be reconciled with our transactions for job costing purposes.”

Lackluster Rewards Programs

According to a study from Forbes Advisor, 70% of cardholders in the U.S. prefer credit cards with cash-back programs. 

“The remaining opportunity is finding a credit card or purchasing card that provides rebates for purchases made during a year.” Bloom shares, “If properly managed, these costs could be used to create an income stream for the business.” 

However, it’s difficult to find credit cards with rewards programs that actually “reward” construction businesses for their loyalty. In the grand scheme of things, flimsy rebate programs are hardly lining the pockets of construction business owners. Traditional credit cards also typically require a certain amount of spending before “rewards” can be unlocked.

Say Goodbye to Credit Card Challenges With the Flexbase Card

“If the finance community could develop a credit card program for construction companies, more usage would occur and the ability to use this funding as a proper tool for financial management,” says Bloom.

Luckily, Flexbase has answered this call and created the first credit card specifically designed for construction companies. 

Say goodbye to useless credit limits, poor cardholder management, and flimsy rewards programs and say hello to 10x the credit limit, 0% APR for 60 days, built-in receipt tracking, $0 annual fees, and more with the Flexbase Card. 

We offer cash rewards that take seconds to earn. Here’s how: 

Activate your Flexbase card, and earn $150 in less than ten minutes. Upload your first receipt and receive a $100 reward in less than two minutes. Complete five purchases with your Flexbase Card and earn $300. Flexbase has dozens of rewards that you can cash out on. 

Click here to get pre-approved today.

What Are Construction Credit Cards Used For?

Most construction companies use credit cards as a way to get 30-40 days to “float” their payments. 

With credit cards, contractors:

  1. Buy materials
  2. Save the receipts
  3. Submit the receipts along with an invoice to their clients; then
  4. Pay the card off when they get paid

Here's how it works:

You spend $750 on lumber and some miscellaneous at Lowes. As long as you pay it off before the end of the grace period, you pay 0% interest on the purchase of those items. 

Depending on the type of card you have, your float can vary from between 30 and 60 days. 

3 Downfalls of a Traditional Construction Credit Card and How Flexbase Is Solving Them

Before you decide to jump into the application process, you must understand the potential risks and pitfalls that commonly accompany most construction business credit cards. 

#1: Traditional Construction Credit Cards  Are Usually Based on Your Credit

As with most credit cards, business credit cards typically base your credit limit on your credit score.

But what do you do if you’ve had a few issues and your score is currently scraping rock-bottom? 

In that case, a traditional construction credit card may start you out with a credit limit of just a few hundred dollars. 

Regardless, most credit cards for businesses start you out with a credit limit of around $5,000 — meaning it’s going to be a challenge to cover any large purchases you may need.

TYour Personal Credit Score Is Irrelevant to Us: Cash Is King, Right?

With the Flexbase Construction Card, your credit score means absolutely nothing to us. 

We use your company's actual cash flow to determine the credit limit for your business. 

Sticking with the cash you have on hand means you won’t be losing sleep at night worrying if you’ll have the means to pay off the purchase you just made.

In fact, a recent article in Payments Journal reveals that cash flow can be used as a predictor of creditworthiness. We agree!

The Flexbase Construction Credit Card works with you to effectively manage your cash flow.

#2: Traditional Construction Credit Cards Require You to Keep Track of all Receipts 

If you’ve told your crew once, you’ve told them a hundred times …

“Save your receipts!” 

And they do, right? 

The truth is, trying to manage every receipt for a project is a massive headache. 

The crew swipes the company card at Home Depot, fills up at the gas station, then swings by your local discount lumberyard — and each one of those receipts gets tossed on the dash of the work truck, possibly never to be seen again.

And that's a huge problem when it comes time to invoice the client. 

Flexbase Construction Credit Cards: Keep Your Receipts Organized by Project With Authorizations

The Flexbase Construction Credit Card puts an end to straggling receipts, organizing them in a way you’ve only dreamed of.

Here’s how it works:

  1. You swipe your card and make a purchase
  2. An automatic message instantly pops up, reminding you to take a picture of the receipt
  3. You are then prompted to tag the photo to a specific project

The next time you send an invoice to your client, that receipt is sitting neatly inside their invoice. This gives your client full transparency into every purchase involved in their project.

Example of How You Can Set Authorizations for Your Crew

Are you tired of looking at your credit card statement and seeing purchases from Dominoes and Taco Bell? 

Problem solved. The Flexbase Construction Credit Card puts a quick end to all unauthorized purchases.

You have the option of setting custom authorizations — such as only allowing the card to be used at Lowes, Conoco, or your local lumberyard.

#3: Traditional Construction Credit Cards Aren’t Designed for the Unique Needs of Construction 

A construction business credit card may offer some perks, such as …

  • No annual fee
  • A sign-up bonus
  • Double points; or
  • Cashback bonuses

… but it’s not designed with the specific needs of the construction industry in mind, such as … 

  • Automatic tracking of receipts; and 
  • Customizable authorizations

Flexbase Has a Software Component Connecting Receipts to Specific Client Invoices

Does your receipt tracking system follow one of these scenarios?

  1. The huge paper-clipped stack of receipts tossed on top of your file cabinet 

Or ...

  1. A littering of receipts, from multiples jobs, blowing around your work truck’s dash

If so ... 

You'll be thrilled to hear about the software component of the Flexbase Construction Credit Card.

Every time you make a purchase, you will get an instant message reminding you to take a picture of the receipt. Then, you'll be prompted to tag that photograph to a specific project, putting an end to the need to keep track of those elusive paper receipts. 

When it comes time to invoice the client, Flexbase has all applicable receipts attached and ready to be sent in one ultra-professional document. 

It just doesn’t get easier than that. 

Recap: How the Flexbase Construction Credit Card Works

So let’s review.  

With the Flexbase Construction Credit Card:

  1. Your cash determines your credit limit.
  2. You can set specific, customized authorizations for your crew, including
  • Spending limits; and 
  • Where to shop.
  1. A crew member swipes the card.
  2. The app requests a picture of the receipt.
  3. The receipt is tagged and attached to a specific project or client. 
  4. The receipt is automatically generated with the client’s invoice.
  5. You save dozens of hours in accounting work and time.

Why a Flexbase Credit Card Solution Is Best for Your Clients

The Flexbase Construction Credit Card is a win-win for everyone. 

Besides revolutionizing your business, your clients will reap the benefits of having purchase receipts automatically linked to their accounts and invoices.

Your company will be seen as being: 

  • Trustworthy
  • Transparent
  • Up-to-date
  • Organized
  • Technologically advanced; and
  • Professional

Flexbase Solves the Construction Credit Card Issues by Combining a Credit Card With Expense Management 

If you are ready to simplify the money management of your construction business, Flexbase is just what you’re looking for.

The Flexbase app and card will revolutionize the way your company spends money — and put a quick end to a leaking cash flow.

Our construction billing platform also helps you manage the payment process from start to finish by letting you:

  • Send invoices
  • Automate compliance forms
  • Generate payment requests
  • And so much more

And with our expense management system built right into the Flexbase card, you can easily and accurately see exactly how much money you have across all of your accounts.

With Flexbase there are no subscriptions or licenses to pay or keep up with. And with fees that start as low as 0.5% per payout you receive, it’s essentially free to use. 

What are you waiting for?

Schedule a demo with Flexbase today!

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