Business FinancesQuestion 1213 of 1605
Which of the following BEST reduces a contractor's need for outside financing on a project?
a.Larger retention withheld by the owner
b.Prompt progress billing and collecting payments quickly
c.Paying suppliers before invoicing the owner
d.A bigger down payment refund to the owner
Explanation
Billing promptly for completed work and collecting quickly brings cash in sooner, reducing the gap that outside financing would otherwise cover. Larger retention, refunds, or paying suppliers early all worsen cash flow.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)