Built Exclusively For Contractors
Traditional credit sources are simply unable to fulfill all of a contractor’s purchasing needs. Moreover, traditional supplier terms are too short and do not align with a contractor’s typical "pay when paid" constraints and pay app cycles. BLOC-Pay is a credit resource built exclusively for contractors. We understand construction pay cycles and how cash flow constraints can impact project schedules, your profitability, and your company's growth.
Stop Being The Bank For Your Projects
The typical cash flow cycle for construction projects just does not work. G.C's and subcontractors are required to front large sums of money to purchase materials and end up waiting moths to get paid. You signed on to be a contractor not a bank.
BLOC-Pay Provides
-
120-day terms – contractors pay for materials when they get paid, or up to 120-days.
-
Project-based underwriting – higher approval limits and less restrictive credit requirements
-
Same-day approvals and funding accommodate the needs of contractors
-
Members are provided credit terms on multiple projects and purchases at the same time – each purchase/transaction gets its own 120-day term.
-
Members can pay early with no prepayment penalties.
-
Terms are extended for purchase from most any supplier.
What is BLOC-Pay?
How Does It Work?
The Problem
A solar contractor landed a contract for $1.3MM.
Material cost for the job was $391,000.
With just three years in business and $1.9MM in revenue, the contractor's supplier was unable to extend credit terms and required cash on delivery.
How BLOC-Pay Assisted
Working with BLOC-Pay the contractor was able to finance the entire material purchase within one day.
The contractor received payment 85 days after breaking ground and paid off BLOC-Pay shortly after.
By using BLOC-Pay, the contractor was able to execute on the project while maintaining their cash reserves to continue growing their business.
Success Stories
A general contractor was performing a large-scale restoration project that required the upfront purchase of $38,000 of specialized windows from a supplier. Although the contractor was an establish business, the credit approval process from their bank was 7 days.
The 7 day delay would push the order lead time from the supplier back by 3 months, putting the entire project way behind schedule.
BLOC-Pay was able to provide instant credit terms, with same day approval. Funds were wired to the supplier within 24 hours.
The contractor obtained the materials so quickly they completed the job ahead of schedule.
A framing contractor was 6 months into a large multifamily project when they exhausted their lines of credit due to payment delays by the GC. Unfortunately, the GC's payment delays had also left the contractor strapped for cash.
The contractor needed $150,000 in materials to finish out the project so his guys could get the job wrapped up.
With BLOC-Pay's project-based underwriting approach, we recognized the value of the project and approved the contractor for additional credit for material purchases.
The contractor’s ability to overcome the situation has since led to many more awarded projects and tremendous growth.
BLOC-Pay Is NOT Factoring
-
Typical factoring is based on financing work that's been completed and invoiced to the GC or owner.
-
Due to the unconventional nature of the construction industry, factoring is not always readily accessible to contractors or suppliers.
-
Factoring is based on the number of days the invoice is outstanding, a percentage of the invoice.
-
In many cases, funds can only be extended for less then 65% of the invoice.)
-
Factoring terms are generally for only 30 days.
-
The cost of factoring can easily run over 6%, and in many cases over 10%.
BLOC-Pay Bank Lines Factoring
Pays Suppliers Upon Purchase of Materials
Eligibility For Preferred Supplier Pricing
Pays Supplier 100% of Material Invoices
120 Day Repayment Terms
Easy E-Application Process
Account Used For Multiple Purchases/Transactions
Directly Impacts All Operational Credit Reserves
Based On Extensive Background Checks
Requires Extended Collateral
Often Requires Excellent Credit
Often Requires Subrogation of All Receivables
Per Transaction Application Fee
Funding Based On As Little As 60% of Invoice
Standard Repayment Terms Are 30 Days
Can Costs Over 6% Per 30 Days Term
Funding Based On Invoices For Completed Work
X
X
X
X
X
X
X X
X
X
X X
X X X X
X
X
X
X
How We Compare
Is This Factoring?
What's The Cost?
BLOC-Pay Offers Straight Forward Simple Terms
-
2% Purchase fee (Rolled into the balance and paid at the end of the term.
-
A weekly interest only payments of $50 to $75 per week for every $10,000 of materials purchased.
-
Balance is due when the contractor is paid for the job, or 120 days after the purchase of materials.
-
No Prepayment penalties.
How To
Get Funds?
We've Made It Quick And Easy
-
Just Hit The One Of The Buttons.
-
Fill-In The Online BLOC-Pay Membership Welcome Form.
-
Answer A Few Questions On The BLOC-Pay Funding Enrollment Portal.
Things For Later
Once You're Pre-Approved For Your New Account We May Ask For:
A copy of the material purchase order or sales order.
A copy of the project contract.
Bank account verification on the PLAID App or 3 monthly bank statements.
The date supplier payment is due.
What Is Membership?
Membership Has It's Privileges
Being A BLOC-Pay Member is free and entitles you to special perks, specials, and privileges that are geared towards making life in the construction world a bit more bearable.
About
Us
Our Story
Since 1997 BLOC has been providing business and financial services. We have always prescribed to the belief that success can only measured when one builds upon long-term relationships instead of short-term profits. We don't want to earn your business. We want to earn your trust and build a true long-term relationship with your organization.
Contact
BLOC
Our U.S. Mailing Address:
BLOC Capitol Commercial, LLC
BLOC-Pay Division
P.O. Box 90661
Austin, Texas 78709 USA
Email: PAID@MyBlocPay.com
Tele.: (844) BLOCPAY
844-256-2729
BLOC-Pay, BLOC Capital, BLOC Capitol Commercial, And BLOC Do Not Offer Consumer or Personal Financing Brokerage, Lending Or Other Such Services To Individuals.
All Loans, Funding, And Programs Are Conditional Upon Approval. Certain Restrictions Will Apply. No Guarantee Of Final Rates, Fees, Expenses, Or Approval Is Given Or Inferred.
