A supply yard sells to builders on account. It buys by the truckload and gets paid when the contractor is paid.
Apply Now →A lumber and building supply yard stocks framing lumber, sheet goods, fasteners, roofing, siding and hardware for contractors and builders. The yard buys in volume from mills and manufacturers, holds the stock in covered and open storage, and delivers it to job sites. Many customers are tradespeople with accounts. They buy now and pay after their own customers pay them, so the yard is often the bank in the middle.
That pattern means the yard's cash is split between inventory in the yard and receivables on contractors' accounts. Both grow when business is good, and both need funding.
| Where | What it is | When it comes back |
|---|---|---|
| Yard stock | Lumber, sheet goods, roofing, hardware | When sold and delivered |
| Contractor accounts | Material delivered on credit terms | When the contractor pays, often after the contractor is paid |
| Fleet and equipment | Delivery trucks, forklifts, saws, racking | Slowly, through service capacity |
A yard that grows faster than its cash will run into trouble because it pays suppliers sooner than it collects from builders.
Material prices can change between the time a yard buys and the time it sells. That is why owners think about when to stock up and how much risk to carry. Building activity also follows the seasons, with winter often slower in much of the state. That means the yard prepares for spring by buying stock while income is still low.
Trucks, forklifts and drivers are a large cost. A breakdown affects not just one delivery but the schedule of every builder who is waiting for materials.
Because the yard sells on account, its credit policy is a cash tool. Setting limits, checking on slow payers and following up promptly all reduce the amount of cash that is tied up in receivables. Some yards offer discounts for early payment, or ask for deposits on large special orders such as engineered products and custom millwork.
When you size a working capital request, start with your aging report. Add the unpaid invoices that are more than a month old, since they show where your cash is tied up. If a handful of builders account for most of that figure, a change in policy may do as much as new funding to fix the problem, and it is worth deciding which approach you want to use.
For illustration only: a yard wants to add $80,000 of inventory ahead of spring to be sure it can fill builders' orders. If its contractors typically take several weeks to pay, the yard will have funded that stock for a long time before it sees cash. Planning for that wait is the key to sizing the amount.
We provide $25,000 to $5,000,000, funded in as little as 24 hours. We consider FICO 500 and up, ask for about three months of business bank statements and do not require tax returns. The application takes five minutes with a soft credit pull. Sole proprietors can apply. Apply here.
Yes. Sole proprietors can apply, and family businesses are reviewed on their bank statements. About three months are requested, and no tax returns are required.
Working capital can cover your supplier payments while you wait on receivables. Size it to the length of your typical wait.
Fleet and yard equipment are typical uses. Consider the downtime cost of a breakdown.
Often. You buy before the building season starts. Weigh the stock cost against how quickly you can sell it.
No. A soft credit pull is used.
Three months of business bank statements and a 5-minute application. FICO 500+ considered. $25,000 to $5,000,000, funded in as little as 24 hours.
Apply Now →It takes about two minutes and it will not affect your credit score.
No obligation • No impact to your credit score
