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Don't let growth of your construction operations become a risky business

from For Construction Pros

Things are going great. Business is good. Revenues are better than last year and you expect higher revenues again in 2017. Things could not be better. A word of caution: Every dollar of sales requires some working capital to support it. In other words, the more you sell, the more working capital you need to support that increase in business. Think about it. You incur expenses before you start a project. You do the job and progress bill as you go along. But no matter how hard you try, the bills come due before you collect on your invoices. As a result, you need to have cash reserves or a line of credit to keep your cash flow positive. more


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