“Imagine trying to run a business where your name is on the line,” says John Smith, Managing Director at Greensill, the leading non-bank provider of working capital finance globally. “The best use of your time is trying to win new work, and making sure delivery is top quality and on time.
“For many businesses in the construction industry, more time is spent chasing payment than anything else.”
Now imagine if somebody could help change all of that — to make sure subcontractors get paid on time for the good work they do.
That’s exactly what Smith and the team at Greensill have in mind with Subcontractor Direct Financing, also known as Sub Direct. Rather than waiting weeks or even months to be paid for the work they have done, subcontractors — for now in the US — can cut out the hassle of tracking down money they are owed, and spend their time instead growing their business.
Commonly, subcontractors wait 60, 90, or even 120 days to get paid.
With Greensill and Sub Direct, however, they can get paid in less than four days.
Sub Direct is just one way that Greensill is changing finance to change the world.
The response to Sub Direct from the US construction industry has been strong. As of January 2019, approximately two-thirds of subcontractors who used Sub Direct on one contract decided to have all of their contracts enrolled, Greensill stats reveal.
For Sub Direct customers, early payment is reliable payment and predictable payment. All three are major benefits for subcontractors who have embraced the platform.
“Small businesses are carrying the load for the US construction economy,” Smith says. “What we do at Greensill helps to ease that burden, letting small businesses do what they do best.”