Cash Flow and the 5Cs of Credit - Overview

Contractors need strong financial partners, including banking, surety, and insurance to grow sustainably.

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They are putting their capital at risk, making a calculated bet on the business generating consistent financial returns at the lowest risk possible.  

Cash Flow: 5C's of Credit. Character, Capital. Capacity, Collateral, and Conditions.

Whether you are an equity owner in a contracting business, plan to be or are choosing to invest your professional “career equity” into the business, you should look at the same factors an outside financial partner does. This will truly align everyone’s interests and make the business run more successfully.  

Greg Martin does a great job of describing the 5 C’s of Credit in a series of articles below.  

Effectively managing cash flow is about balancing what you can do internally while building and maintaining strong external financial partner relationships.  

  • What are your internal capital management policies? 
  • Are they in alignment with your outside financial partners?  
  • How does this look over the next 5 years or during succession if that is on the horizon for you?

Cash Flow and the 5Cs of Credit - Overview
Great cash flow is a key driver of valuation and successful successions. Running out of cash is is the #1 reason contractors fail. Improving cash flow improves your Return on Equity. Protect yourself and never let cash flow be the limitation to your profitable growth....

Cash Flow and the 5Cs of Credit - Overview
Great cash flow is a key driver of valuation and successful successions. Running out of cash is is the #1 reason contractors fail. Improving cash flow improves your Return on Equity. Protect yourself and never let cash flow be the limitation to your profitable growth....

TOOL: Model Your Business, Prioritize Improvements, and Execute
Contractor Business Model template you can customize to represent the current and future state of your business. Use this model to identify bottlenecks and constraints to your growth. Learning guide for your team based on The 4 Disciplines of Execution.
Leadership Team Communication
Open and frequent communication does not automatically build great projects or construction companies.
002 - The Construction Contractor Business Model (Intro)
As contractors grow, their business model complexity evolves, affecting structure, management, and people. Visualizing this reveals bottlenecks. Includes 3 hours of examples and 50+ resources (tools, books, training, articles) to help your business grow.