How Fintech Can Help Construction Contractors
There’s a widely held misconception that the construction industry is the least likely to embrace cutting-edge technology.
Some business leaders and even industry “experts” assume that technology cannot do much to improve construction processes and business functions. But one thing is for sure, the construction industry are using tools and equipment such as this standing seam safety anchor to always ensure safety.
However, fintech is just one of many ways that can streamline a construction contractor’s firm and turn it into a lean and highly profitable venture.
Companies that offer fintech solutions can also profit by providing select services and solutions to construction contractors.
The following illustrates a few examples of how fintech can help construction contractors (and present new opportunities for the companies that provide fintech solutions):
Does cryptocurrency have a place in the construction industry? In short, the answer is yes!
One of the most significant challenges facing construction industry contractors is making and receiving cross-border payments. Sometimes, contractors need to purchase raw materials from overseas if requested by their clients.
As you probably know, making and receiving such payments is expensive through conventional means. However, cryptocurrency is decentralized, meaning you don’t need to pay fees to specific financial institutions for processing such transactions.
It’s also useful for financial transactions like equipment financing, for instance, if your finance provider isn’t based in the same country as you, or if you complete international projects.
Supply Chain Management
As a construction industry contractor, much of your time will get spent sourcing materials, products, tools, and equipment for use on each project. You can rely on this buyers guide when purchasing heavy equipment.
Keeping a track of the things you order, the expected delivery dates of items, and paying for everything can be overwhelming at the best of times. A useful way that fintech can help your business is through a tailored supply chain management solution.
Sometimes you may not have enough capital in your business to pay for subcontractors and material costs. You may think this can limit the types of projects you can handle. However, borrowing the money you need will help you have the cash flow your business needs.
These days, fintech provides you with innovative ways to raise the capital needed for new projects, such as through P2P lending apps and websites.
AI (Artificial Intelligence)
While it’s true that you can rely on your experience and expertise for things like estimating material and project costs, the truth is you can’t always rely on yourself to provide accurate cost approximations.
Did you know that you can utilize AI (artificial intelligence) to help you with such tasks in your business?
Lastly, you will spend much of your time at construction sites or visiting clients at their premises.
When you’re “on the road” most of the time, you won’t have much of a chance to keep important documents with you, let alone have an easy way of sharing them with other people like clients and suppliers.
Another useful fintech solution that will benefit you as a construction contractor is an online document exchange system (think Dropbox but specifically for the construction industry).
There’s no denying that fintech offers numerous advantages to construction contractors if you go by the above examples.
If you’re such a contractor, consider incorporating fintech into your company’s processes to make your business leaner and more profitable and help it grow quicker.
Photo by Mark Potterton on Unsplash